Friday, 18 July 2008

Another step towards the edge

The financial crisis took another leap forward today; Merrill makes sneaky announcements of losses, and the government connives to break its own rules. Meanwhile, Kristie claims the housing crash had nothing to do with her.

Brown and Darling to break their own fiscal rules

New Labour have lost the plot. Brown sets up some fiscal rules, and the moment it gets a little difficult, he wants to break them. As the economy slows, tax revenues are coming under pressure. Rather than cutting back on expenditure, New Labour are going to borrow more.

Trying to borrow your way out of a recession; that has been tried before. The consequences are all too predictable; but Brown and Darling are too desperate to care. When it comes to their survival and the long term health of the UK economy, there really is no choice.

UK ratifies EU Lisbon treaty

Brown signs us up for the new EU constitution. Did I miss the referendum?

Newsweek: Is your bank safe?

It is extraordinary how questions that would have been absurd this time last year have now become so important. Following the collapse of IndyMac, Newsweek asks the head of the US deposit insurance corporation about the health of the US financial system.

US Senate accuses two European banks of aiding tax evasion

Here is a surprise; UBS has an estimated 19,000 accounts in Switzerland for US clients with assets valued at 18 billion dollars.

Canadian inflation hits 4.3 percent

Another central bank waiting around for deflation to sort out soaring prices.

Merrill writes down a further $5 billion

Mother Merrill sneaked this one in after the markets closed. In the last four quarters, these sub prime wasters have accumulated $19 billion in losses. Citigroup report today; if you are holding financial sector stocks, it might be a good time to dive for cover.

Allsop says the housing crash is not her fault

I try to ignore her, really I do, but she keeps saying the most outrageous things:

"It's plain silly to point the finger at these (property) programmes for puffing up the property market, forcing people into taking out massive mortgages or into negative equity. Blaming such shows and their presenters for the present uncertain state of the property market is akin to blaming TV chefs for the great bulge in obesity."

Well, no one would argue that property programmes forced people to take out massive mortgages, but Kristie and her mates did a lot to make it socially acceptable to speculate on property.

Kristie thinks the housing crash is all the fault of journalists who have sold up and are now trying to talk the market down. Could there be a contradiction here Kristie? If you talk the market up, then that is OK, but if a journalist talks it down, there is something wrong going on.


Markbaldy said...

Brown and Darling will try every trick in the book to prolong this fickle economy - no matter how painful the consequences will be.
Brown is a deperate man trying to regain some credibility but all he will do is to bungle things up even more than he has done already...Mr Darling is just the front man/scapegoat... a complete idiot I think.
We as a nation are massively in debt thanks to Gordon's total incompetence over the last 12 years - NO he wasn't a good chancellor.... any fool can have a new Range Rover on the drive and a 4 bedroom house in Cheshire... if it's all from BORROWED MONEY !
As for the referendum... well did anyone really think we would have one ? New Labour's record on NOT respecting public opinion is surely legendary by now eh !

Mark Wadsworth said...

Is this breaking the Golden Rule a surprise to anybody?

Anonymous said...

I thought the golden rule was "he who sells all our gold (at record lows) makes the rules"


Karen said...

I am really not surprised.
Nice article.