I am posting this again in order to emphasise just how serious this admission is.
Bank contagion is elementary economics, not something mysterious and unknowable. Any economist with basic knowledge knows this problem.
It has long been obvious that Gordon Brown the Clown is a dull, economic illiterate. He is so incompetent he does not even recognise how revealing is this admission.
He probably believes that by ‘owning up’ to something he believes an understandable error will gain him political advantage for ‘being frank’. This is a typical politician’s trick but, in this case, the ‘admission’ which he believes to be harmless is far worse than other inanity he could have chosen.
Brown’s irresponsibility, Enronisms and incompetence cannot even have been mere politician’s dishonesty. He must really believe his own tripe.
bank systemic contagion
the web address for the article above is