Hi Lizzie,
Thank you for your reply to my comments

and I've added to what I've said
A banking crisis is not a universal capitalism crisis as most companies have done well, with bankruptcies much below what we have seen in recession nowhere near as bad as this one. Companies are sitting on record cash piles, waiting for investment opportunities and will be investing again, once the economy picks up.
Even in banking most of the problems have been mainly caused by politicians. The sub-prime crisis of Clinton forcing banks to do social lending and his repealing of the Glass-Steagall Act 1932 which seperated investment and retail banks (quite rightly so) and in the UK big-bang of allowing retail banks to also be investment banks, but the biggest UK disaster was McRuin's tripartite split of banking regulation between the BOE, the Treasury and the FSA, which allowed the banks to run riot (not that bad regulation means what they did was right), encouraged by the BOE keeping interest rates artificially low and McRuin encouraging the banks to be reckless as he got more tax money to spend.
It is also socialism that rescued the banks, the Government should have let them fail, badly and recklessly run companies should fail to be replaced by better run businesses. It is only because both of the banks saved were in McRuin land that they were rescued, with HBOS dragging Lloyds bank down in the process because of McRuin. The one that wasn't in McRuin land was allowed to go to the wall.
At no time is my statements have I suggested there should be no welfare, but I would have a very different structure than our current excessively expensive failed system including the Ponzi pensions system. Identified wasted Government spending was over £101bn in 2008 and is probably much higher now and there will also be much that is unidentified. (Source: The Bumper Book of Government Waste 2008)
"To think of our state going back to a historical situation of children starving in the streets, men and women in poor houses, high infant fatality, men walking the streets begging, very high housing occupation, as a result of no sick pay, no health care, no financial safety net, etc, etc, - NO WELFARE - is to me totally unacceptable. This would favour the rich, but leave the poor, the weak, the sick, the unfortunate, absolutely without hope. This must never happen again."
Sorry to disappoint you but that is all coming back, for exactly the same reasons that it has in Greece. Why, because this country does not pay its way in the world. Two measures that show this is our balance of payments and Government borrowing. As the Government tries to squeeze more revenue out of a shrinking pot, so the wealthy move elsewhere, entrepreneurs find better countries to do business in and the skilled find better places with more disposable income to ply their trades. Especially skilled engineers and scientists.
There is no growth is this country and very little prospect of growth in the near future, only falling real incomes (13.2% fall so far since 2008) and with QE and Government printing presses running at full speed above target inflation leading to stagflation. Without the economy being rebalanced with reduced Government spending and tax cuts there will be no or very little growth. Without private sector growth there cannot be any deficit reduction in smaller Government spending or increased tax receipts (or both) without the economy shrinking. This is basic economics.
The UK is rapidly losing it wealth creators and highly skilled scientists and engineers because there are better places to live and work. And it is not all about tax rates as people that have moved to Denmark and Switzerland will tell you, yes they do pay high taxes, but in return they get first class public services. Engineers and Scientists also have a much better status in society in much of Europe and are vastly better paid.
In this country we have the worst of both world, high taxes and very poor public services. Many highly paid very skilled people are leaving because they will accept low taxes and poor public services, or high taxes and world class public services, but not what the UK has got, the worst of both.
Everything is about balance, I not against all welfare, but when a Government is spending 50% of what the country earns and we still have a third world health system, that is very dependent on charitable donations for much of its equipment. Where we have a road system that is falling to pieces and a military being skinned to the bone.
You have to ask the question: Why in the history of mankind, is so much wealth being collected, to be spent on the many, when it is benefiting so few. (sorry Churchill)