If the Tories had been in power things would probably be worse

[sasguru]

If, as is commonly believed, this recession/depression has been caused by

(1) the securitisation of sub-prime mortgages by financial firms combined with
(2) an overly lax monetary policy i.e. too low interest rates

then logically as the Tories traditionally support more deregulation and lower interest rates, we would have been no better under them and arguably worse.

I now await the hard of thinking, reflex, cretinous Tories on this forum, but I would ask them to address the logic of this post rather than behave like chimps prodded in a laboratory.

[FSM with Cheddar]

Yeah fair point, I was pleased when Labour came to power. The Conservatives needed a good kick up the proverbial.

But now it is the same with labour; even if the Tories wouldn't have handled this much better. They are now an effective opposition, and are developing policies which are realistic, and in touch with the public. So I would be far more confident with a Tory government after the next election.

[Solidec]

Half true.

Problem may well have been worse, solution will likely have been easier (better public finances)

Not sure which is the more favourable position:

Really Bad Banking/Credit crisis compounded by the derisory state of public finances and higher taxation

OR

Really Really bad Banking/Credit crisis softened by a much healthier public finances and overall lower taxation.

What I do know is that the second is likely to give me more control in how I want to handle getting out of my personal recession, but A takes that control away.

[BrilloPad]

I hate the Torys.

But I am not convinced. I doubt the BoE would have been independant. So inflation would not have been the only target. They might even have targeted the money supply increase of 2006.

But you can't rerun history. And overall I doubt things would have been any different. Both parties occupy roughly the same ground.

[sasguru]

Actually economic policy here mirrors the US - what happens there happens here. We are just another state of the US - with a 2 year time lag.

[ace00]

It depends also on what you mean by "things" . The credit crunch will hurt everyone, globally, but countries will clear the losses eventually and rebuild.

IMO the UK will hit the rebuilding phase saddled with additional massive debts -pensions, state spend, dole, etc. which will grind down any recovery - leading inevitably to a recession lasting a decade or probably more.

These debts have been recklessly inflated throughout the Labour administration.

Again your simplistic analysis does not hold up to examination.

[DimPrawn]

If, as is commonly believed, this recession/depression has been caused by

(1) the securitisation of sub-prime mortgages by financial firms combined with
(2) an overly lax monetary policy i.e. too low interest rates

then logically as the Tories traditionally support more deregulation and lower interest rates, we would have been no better under them and arguably worse.

I now await the hard of thinking, reflex, cretinous Tories on this forum, but I would ask them to address the logic of this post rather than behave like chimps prodded in a laboratory.

The difference is the debt level of the country. A more prosperous (lower taxed free society) would personally have less debt and the wasteful spending spree of the last 11 years on a zero effeciency public sector would not have occurred.

The global bubble would still have popped, but as individuals and a country we would shrug it off.

[DimPrawn]

Again your simplistic analysis does not hold up to examination.

simpleton

[ace00]

The difference is the debt level of the country. A more prosperous (lower taxed free society) would personally have less debt and the wasteful spending spree of the last 11 years on a zero effeciency public sector would not have occurred.

The global bubble would still have popped, but as individuals and a country we would shrug it off.

Well if that isn't plagarism I don't know what is.

You will be hearing from my solicitor.

[d000hg]

The difference is the debt level of the country. A more prosperous (lower taxed free society) would personally have less debt and the wasteful spending spree of the last 11 years on a zero effeciency public sector would not have occurred.

The global bubble would still have popped, but as individuals and a country we would shrug it off.

Does that mean the US should shrug it off since they are less state-oriented - is that your prediction? Or do you predict they will crash and burn as badly as the UK for other reasons?