Reply to: £915 billion needed

[expat]

Well to be fair, right wing america is in financial trouble because of left wing democratic policies and corruption.

Mailman

Half right.

Clinton forced lenders to do 10% social lending, i.e. never get it back.

Bush gave great tax breaks to the rich, much more than the budget (his budget) could afford; then did the Iraq war too.

A plage from both their houses.

[Bagpuss]

Where is the evidence for that?

Just to remind you what we are talking about, Brown took supervision away from the BoE, brought it under his control at the IFA, and they let go of the reins. We went from a situation where banks roughly balanced savings and lending, to today, where they have a £750 billion deficit.

Firstly there was no need to do it. Secondly the Tories were for smaller government, not larger.

You assume politicians are somehow in a better position to judge economics than businessmen, whereas I wouldn't trust them to run a cake stall at a fete. IMHO independence of the BoE would make no difference, moreover the Tories are for deregulation not the converse.

We would still be in bust mode now under the Tories, albeit not so much in debt, and Cybertory et al would be lauding the economic miracle of the housing boom, and the unfortunate coincidence of the "world wide recession"

[AtW]

Where is the evidence for that?

It's based on common sense that those in Govt would do anything to stay in power.

Labour Govt for example did not look like they were going for labour principles at all - they just did what they had to stay in power for as long as possible.

Just to remind you what we are talking about, Brown took supervision away from the BoE, brought it under his control at the IFA, and they let go of the reins. We went from a situation where banks roughly balanced savings and lending, to today, where they have a £750 billion deficit.

Yes Brown did all that and maybe Tories would not do that.

But I ask myself - would have Tories allowed (or stimulated) the same house debt bubble as Labour did? I am pretty sure Tories would have done the same. However they'd probably reduce taxes and state borrowing to pay off Govt debt (Brown took on lots of debt too), this overall would have made UK better positioned for this downturn, however I doubt very much Tories would not have inflated the housing bubble in this country.

[Doggy Styles]

I doubt the tories would have stopped supervising the banks in 2001, which allowed them to start running up their massive deficits with their wacko schemes.

I am sure Tories would do the same...

Where is the evidence for that?

Just to remind you what we are talking about, Brown took supervision away from the BoE, brought it under his control at the IFA, and they let go of the reins. We went from a situation where banks roughly balanced savings and lending, to today, where they have a £750 billion deficit.

Firstly there was no need to do it. Secondly the Tories were for smaller government, not larger.

[minestrone]

Good article on it in The Scotsman today..

linky

Mature and highly reasoned response from Unison..

"This is the CBI jumping on the back of the Tory party, back to their usual games. They are attacking public-sector pensions at a time when they should be addressing the real issues in the economy, which their members bear some responsibility for."

We should just let that fine chap run the country, he seems to have all the answers.

[Mailman]

Aye, but:

• Right wing America is in financial trouble too

Well to be fair, right wing america is in financial trouble because of left wing democratic policies and corruption.

Mailman

[AlfredJPruffock]

I read recently the amount which Blair is now creaming for his Gold Plated State Pension and the amount spent on his security alone - its too depressing to contemplate.

'Nuff said.

[AtW]

And another thing, I doubt the tories would have stopped supervising the banks in 2001, which allowed them to start running up their massive deficits with their wacko schemes.

I am sure Tories would do the same, the only thing that would have been different is that they would have had lower taxes and lower public debts. That would have made the difference now.

[Doggy Styles]

And another thing, I doubt the tories would have stopped supervising the banks in 2001, which allowed them to start running up their massive deficits with their wacko schemes.

[Doggy Styles]

Aye, but:

• Right wing America is in financial trouble too
• The Tories were like Church mice until Blair left
• Tory policy probably wouldn't have been much different and we'd still be in trouble now if they'd been elected. We've in affect had a Monetarist/Tory government for most of the last Labour years. We didn't go forward after Thatchers initial reforms
• The problems have been building up for a long time

No, this is not true. The Tories lost two elections BECAUSE they opposed Labour's profligacy.

They were called the "Nasty tories", accused of wanting to make cuts and sack teachers and nurses, and lost the propaganda war.

That is why they appointed a more voter-friendly leader and kept quiet about balancing the books, because that is the only way to get elected.

[DimPrawn]

Aye, but:

• Right wing America is in financial trouble too
• The Tories were like Church mice until Blair left
• Tory policy probably wouldn't have been much different and we'd still be in trouble now if they'd been elected. We've in affect had a Monetarist/Tory government for most of the last Labour years. No one went forward from Thatchers initial reforms
• The problems have been building up for a long time

Would we have seen the huge expansion of the Public Sector (non jobs on £50K pa each), with gold plated final salary pensions for every paper shuffler?

No. Taxes would have been lower and debt therefore lower. We would have shrugged off this crisis in a week.

Boomed!

[ratewhore]

The business lobby group said the 'truly eye-watering' bill will cripple today's taxpayers, their children and grandchildren.

New plan B - leg braces...

BOOMED!!!

[TimberWolf]

Financial meltdown. This is what happens when you elect the Labour party.

FFS don't do it again.

Aye, but:

• Right wing America is in financial trouble too
• The Tories were like Church mice until Blair left
• Tory policy probably wouldn't have been much different and we'd still be in trouble now if they'd been elected. We've in affect had a Monetarist/Tory government for most of the last Labour years. We didn't go forward after Thatchers initial reforms
• The problems have been building up for a long time

[NotAllThere]

By January, the £915,000,000,000 will be worth €10. So where's the problem?

[chef]

Can't we just borrow it from threaded?

it's christmas, it's been spent on mince pies

HTH