We need a strong opposition. What we’ve got is half-baked and socialistic

As governments bail-out failed banks, the financial world has realised that politics is not irrelevant. So their economic plans are now coming under close scrutiny - and Cameron's lack coherence.

Until a year ago, when the credit crunch began, the fashionable view in the City was that politics had become virtually irrelevant. A friend of mine who works as a political analyst for a big investment bank used to complain that his colleagues simply weren't interested in his insightful briefings on the agendas of the world's chancelleries. Apart from the occasion flicker of concern over a possible nuclear strike on Israel, most City folk looked down on politicians as little more than potentially useful purveyors of pork, while the serious business of setting interest rates was farmed out to central banks.

How that view has changed in the last 12 months. It turns out that politics matters far more than anyone realised. Not only have we discovered that our supposedly free markets were not so free after all with the state still a major player, both as lender of last resort to a reckless banking system, and as the guarantor in the case of the US of trillions of dollars of dodgy mortgage debts. But the financial world has also realised that it needs politicians to sort out its gigantic mess.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Simon Nixon

Simon is the chief leader writer and columnist at The Times and previous to that, he was at The Wall Street Journal for 9 years as the chief European commentator. Simon also wrote for Reuters Breakingviews as the Executive Editor earlier in his career. Simon covers personal finance topics such as property, the economy and other areas for example stockmarkets and funds.