Wednesday, 21 September 2011

Conference Speeches Pt. 3 Vince Cable

Here's Vince, Part 1:

Part 2:

The full transcript can be read here.

He doesn't exactly have the charisma of Nick or Tim but that doesn't mean we should listen to him any less as when he opens his mouth the words that come out are incredibly sensible.  One thing that really surprised me was the following stat:

"Massive potential instability is caused by UK-based global banks whose combined assets are over 400% of GDP, by far the largest of any major country."

I find this absolutely incredible.  It is no wonder that we were effectively held our country to ransom - they couldn't fail.  

He is spot on when raising the point about the UBS rouge trader as well. Allowing people to act like this even now, years after the Nick Leeson affair all those years ago, cannot happen.  These risks cannot continue!

I'm glad he through in the following sentence:

"Let me be clear, there is absolutely nothing wrong with generous rewards for those who build up successful businesses and create wealth and jobs, the real entrepreneurs"

Far too often the talk on taxes is focused almost on punishing the rich as if none of them deserved to get to where they are.  This is simply wrong, in a good capitalist society there has to be rewards available for people who take a chance, stick their neck on the line and try and generate their own wealth and by doing so create jobs and opportunities for others.

I'm also glad he mentioned that they are looking at institutional investors.  This may seem like a small point but for good corporate governance to be effective the institutional investors need to have an input into the companies they own.  Many people may question why we should be concerned for institutional investors, well they are effectively you - pension funds are some of the very biggest institutional investors, which is also why a rocky, unstable stock market is bad for all of us - well at least those of us whom one day aim to draw a private pension.  This could help with his second point, if they had more of a say then there is no way they'd allow it to go on.  Though I don't think this really goes far enough.

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