Banks have to shrink which is why we need a Green New Deal

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The FT's noted:

Europe’s biggest banks will have to cut €661bn of assets and generate €47bn of fresh capital over the next five years to comply with forthcoming regulations aimed at reducing the likelihood of another taxpayer funded bailout.

The fact is that too many banks are still too big to fail.

And since they won't cut their speculation it is lending for ordinary business that will suffer as a result.

The implications of that are obvious: there will be less credit to fuel the real, value added, economy.

So, we need someone else to provide that credit. Let's call it a national investment bank - even a green investment bank, if you like. Let's apply the  money for public good - which does not mean we do not want a return - but we link it to social as well as speculative advantage. And we give the project a name. Let's call it the Green New Deal.

It is the only way forward right now.

And we've got a new report out soon.