From Mr AV Rajwade.
Sir, While one agrees with the basic point made in Robin Harding’s “Central banks have given up on fixing global finance” (August 28), namely that the global financial system needs reform, the argument that the Chinese surplus “sent a flood of capital into the US and helped create the financial crisis” seems far-fetched.
The true underlying cause was headlined on the front page in your esteemed paper on the same day: that JPMorgan Chase is being asked to pay $6bn for false certification of mortgages (“JPMorgan’s woes deepen as US demands $6bn penalty”).
It is the greed of the bankers – the obscene bonus culture that has pervaded the City of London and Wall Street, the way policy makers have given importance to the convenience of the financial economy rather than the needs of the real economy, the ideological faith in the banking system’s ability to manage and price risks, etc – that are the root causes.
Surely, these were not the result of Chinese capital!
AV Rajwade, Mumbai, India