The Financial Times building is a good vantage point for watching the goings-on at the G-20 summit. The Excel centre, where the summit will take place, is just a few tube stops away. As I write the “anti-capitalist” demonstrators are gathering near London Bridge – I can hear the sirens and the hovering helicopters through the windows. A procession of world leaders and summit participants have been trooping through the building, giving on-the-record interviews or off-the-record briefings.
Listening to three of the people who will be sitting around the table at the summit tomorrow, I was struck that maybe the leaders are arguing about the wrong issues. At the moment, the big controversies are about regulation and fiscal stimuli. But the three leaders I am referring to made the same point: this crisis is not going to end, until the banks have been cleaned up. As one of them argued, until the banks balance-sheets are cleaned up, more government money is just “pouring money into a bucket with a hole in it.” Read more