The UK is a giant hedge fund

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I do, as so often, recommend Simon Caulkin's column from the Observer this weekend. It, when combined with William Keegan's column, made a refreshing page of reading. One paragraph did however stand out from Simon's column, even if it is in turn based on a quote from another journalist:

As Anthony Hilton wrote in the Evening Standard last week, 'the entire UK economy has become, in effect, a giant hedge fund with a massive one-way bet on financial services - and no Plan B for the day when the City goes off the boil.' If and when it does, the costs of the government's failure to understand the managerial economy will be high - for all of us.

I agree with both Anthony Hilton and Simon Caulkin, even more so because it's this one way bet that has meant the UK has had to be a tax haven and has meant Gordon Brown has been too frightened (I use the word advisedly) to abolish the domicile rules.