Published online by Cambridge University Press: 07 January 2026
Chapter six focuses on the great financial crisis of 2007-08, when everything fell apart. The crash sucked in many countries, but the UK economy was hit particularly hard. The banking crisis revealed the larger problems of its Ponzi-scheme style economic model, built on growing private and public debt and reliant on an over-sized financial sector and fickle international investment. Although the Treasury was to appear the nation’s saviour, the institution was also culpable for helping shape and then shore up such an unbalanced and unstable economic system.The key question that occupies the chapter is why no substantial paradigm shift followed. Whatever version of capitalism that had been operating in the UK was no longer working. Even the super-rich of Davos, OECD and IMF technocrats, and the Queen of England, could see that. Neoliberalism had hit its wall. Keynesians and other heterodox economists came out to cheer on the new economic revolution. And then … nothing. But for a raft of new banking regulation, arranged by mild-mannered technocrats, it was status quo as usual. Governments everywhere absorbed their failing banks, loaded up their debt, and flushed trillions in government-issue monopoly money (QE) around the failed Ponzi-scheme system.
To save this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.