Leading private equity industry voice Jon Moulton has called for the UK government to “take the pain today for a better tomorrow”.
Speaking at a DLA Piper conference at the London Transport Museum last night, Jon Moulton said that the current European economic crisis is damaging investor confidence and that rising European unemployment levels cannot be allowed to continue .
Jon Moulton said that banks remain a major problem in that the trust between them has been lost. He commented that in the year to date, banks have raised a mere ?9bn, whereas, even with the lowest estimates, they need at least ?800bn.
Jon Moulton went on to explain the cause of the financial crisis by quoting Charles Dickens’ Little Dorrit: A person who can’t pay, gets another person who can’t pay, to guarantee that he can pay. Like a person with two wooden legs getting another person with two wooden legs to guarantee that he has got two natural legs.
“There’s debt everywhere and we’re solving it by adding more debt. We live better today at the expense of those who follow us,” he said.