But let us not forget that he saved the banks from a situation he helped create. He assumed that government could preserve stability while running a ballooning budget deficit in a boom; that it is possible to build a sustainable economy on a narrow base of housing, public spending, and financial services; that we could permanently spend more than our income and build an economy on debt; and, ultimately, he assumed that he could abolish boom and bust in doing so.
But, while he might have saved the banks, he has certainly not saved the rest of us.
With unemployment rising, with small businesses, home owners and pensioners really feeling the pinch, it is not good enough simply to bail out the banks and soak up the applause.
In a downturn, tax revenues will fall and benefits spending will rise, leading public sector borrowing to soar. This re-enforces how irresponsible the Government was to borrow so much when the economy was booming.
Conservatives have proposed tax cuts to help families and small businesses. Starting by freezing council tax for two years by reducing central government's wasteful spending on advertising and consultancy. We would suspend the annuities rule, which is locking pensioners into lower incomes for the rest of their lives. We would defer VAT payments and reduce NI contributions for small businesses to help cashflow to keep them trading. We will also reform insolvency law to give sound companies much needed breathing space when facing credit problems.
These and more measures we will announce in coming months will make a difference to families and small businesses struggling to make ends meet.
