Reply to: The end of Brownism

[OwlHoot]

I don't agree at all. Borrowing has been far too easy and credit-checks and security values have been pretty much ignored.... unsecured lending at the level we have experienced was crazy.

Er, that doesn't contradict what I said. Yes, maybe the amount of high-risk lending (secured or otherwise) was crazy. But it was also crazy in the US, and thus in the circs to curb it unduly in the UK would have been even crazier and probably impossible anyway to any significant degree.

Maybe I'm oversimplifying, and the UK financial authorities could have somehow prepared a bit better for what many knew must be coming. But I still maintain there's a limit to what they could do with finance being so competitive.

Investment money is like water, liquid mercury more like - Introduce differences, in things like interest rates, and it all flows inexorably and rapidly "downhill" to search out the best deal. Isn't the Yen Carry Trade an example of that?

[sasguru]

Brown is the guy in government for that past 11 years, and he has allowed an enormous debt binge.

Try addressing my post which clearly shows the Tories were in favour of even more dergulation and would have made it even worse.

[sasguru]

I bet you cannot post a link on that, because it's untrue. I've been for tighter regulation for ages and actually had a discussion with colleagues on this 18 months ago. I'm afraid I could see this bust coming and marketed my house in June 2007 for that reason.

But you still have it, eh?
Funny how all the financial "experts" like atW and Cybercertin are the ones who have made no money at all or are holding devaluing assets.
You couldn't make it up.

[Cyberman]

Here, cretin, are your favourite political party calling for MORE deregulation not too long ago. They seem to have gone quiet on that recently

http://www.timesonline.co.uk/tol/mon...cle2251766.ece

You really fell out of the stupid tree and hit all the branches on the way down, didn't you?

Brown is the guy in government for that past 11 years, and he has allowed an enormous debt binge. As usual the Labour hypocrites look to blame somebody else!!

[Old Greg]

The Mayan calendar also ends in 2010.

Insure now with Browndential

Not so. They've just nipped out to buy a new one.

[Cyberman]

Hang on, you changed your tune, 6 months ago you were scoffing at my suggestion of the above.

I bet you cannot post a link on that, because it's untrue. I've been for tighter regulation for ages and actually had a discussion with colleagues on this 18 months ago. I'm afraid I could see this bust coming and marketed my house in June 2007 for that reason.

[sasguru]

I don't agree at all. Borrowing has been far too easy and credit-checks and security values have been pretty much ignored.... unsecured lending at the level we have experienced was crazy.
Remortgaging housing to repay debt should never have been allowed. People just lost any sense of the true value of money.
HMG, the regulators(FSA, BofE etc) and banks are all to blame. Brown did not tighten regulation, but loosened it for his own ends.

Here, cretin, are your favourite political party calling for MORE deregulation not too long ago. They seem to have gone quiet on that recently

http://www.timesonline.co.uk/tol/mon...cle2251766.ece

You really fell out of the stupid tree and hit all the branches on the way down, didn't you?

[Bagpuss]

I don't agree at all. Borrowing has been far too easy and credit-checks and security values have been pretty much ignored.... unsecured lending at the level we have experienced was crazy.
Remortgaging housing to repay debt should never have been allowed. People just lost any sense of the true value of money.
HMG, the regulators(FSA, BofE etc) and banks are all to blame. Brown did not tighten regulation, but loosened it for his own ends.

Hang on, you changed your tune, 6 months ago you were scoffing at my suggestion of the above.

[Cyberman]

Much as I loathe defending NuLab, and despite their numerous cock ups (practically everything they touch), I don't think they can be blamed much if at all for the credit crunch.

If they had tightened up on credit even slightly, all the money would have flown away from UK institutions like a flock of starlings to migrate to where credit was easier and cheaper, in particular the US.

Also, there's something to be said for expansionist policies, sustained for many years, even if there's a downward slide at the end of a cycle.

As a gross simplification, what's better: 4 steps up and 2 steps down, or 2 steps up and 1 down? The second is less of a fall, but you're only 1 step up instead of 2. (And compound interest should also be taken into account.)

I don't agree at all. Borrowing has been far too easy and credit-checks and security values have been pretty much ignored.... unsecured lending at the level we have experienced was crazy.
Remortgaging housing to repay debt should never have been allowed. People just lost any sense of the true value of money.
HMG, the regulators(FSA, BofE etc) and banks are all to blame. Brown did not tighten regulation, but loosened it for his own ends.

[Bob Dalek]

encoraged

The evil snot goblin has deliberately made use of the perceived wealth effect of asset price inflation balanced by deflation in wages at the bottom end caused by massive immigration to maintain the nuLieBore regime in power.

Cameron, the man who gave B’Liar a standing ovation in recognition of his achievements as PM, would have been just as bad.

encouraged

[expat]

We would not be in this mess with a Tory gov. so he would not have had it to sort out.

Oh right, the rest of the world doesn't have any problems at the moment, it's only us

And the whole banking meltdown is Brown's doing

Ninja loans, FNMA & FMAC, Lehman and all

[TimberWolf]

Also, there's something to be said for expansionist policies, sustained for many years, even if there's a downward slide at the end of a cycle.

If it had been nuclear reactors, a space program or public infrastructure expanded I might agree, but public sector pen pushers?

[d000hg]

He looked knackered over the weekend, did you see the size of the bags under his eyes !? I must say Darling has performed well in front of the cameras.

Would you have any faith in Cameron in this situation, I wouldn't.

If leading political figures don't look exhausted, that's more worrying.

[Gordon Brown]

Much as I loathe defending NuLab, and despite their numerous cock ups (practically everything they touch), I don't think they can be blamed much if at all for the credit crunch.

If they had tightened up on credit even slightly, all the money would have flown away from UK institutions like a flock of starlings to migrate to where credit was easier and cheaper, in particular the US.

Also, there's something to be said for expansionist policies, sustained for many years, even if there's a downward slide at the end of a cycle.

As a gross simplification, what's better: 4 steps up and 2 steps down, or 2 steps up and 1 down? The second is less of a fall, but you're only 1 step up instead of 2. (And compound interest should also be taken into account.)

WHS

[OwlHoot]

.. actually regulation and HMG had failed us by allowing a debt spiral.

Much as I loathe defending NuLab, and despite their numerous cock ups (practically everything they touch), I don't think they can be blamed much if at all for the credit crunch.

If they had tightened up on credit even slightly, all the money would have flown away from UK institutions like a flock of starlings to migrate to where credit was easier and cheaper, in particular the US.

Also, there's something to be said for expansionist policies, sustained for many years, even if there's a downward slide at the end of a cycle.

As a gross simplification, what's better: 4 steps up and 2 steps down, or 2 steps up and 1 down? The second is less of a fall, but you're only 1 step up instead of 2. (And compound interest should also be taken into account.)