It is really bewildering how far the Tories continue to push supply-side economics, and are now preparing to do so yet again even though every such initiative has failed miserably, but deliberately ignore the open goal of demand-side economics.
Osborne softened the Vickers bank reform package as a quid pro quo for the banks increasing their lending to industry under the auspices of Operation Merlin. The banks took the weaker reform package bait, but then disregarded the higher lending. Then Osborne offered Funding for Lending to the banks, but what did the banks do? They once again thwarted the intention to release funds for industry by opting instead to use the funds for mortgages and property development because bricks and mortar were a safer loan.
