Jump to content
House Price Crash Forum
Sign in to follow this  
R K

The Case Against Gordon Brown

Recommended Posts

http://business.timesonline.co.uk/tol/busi...icle5576686.ece

Evan Davis barely laid a glove on Gordon Brown on the Today programme yesterday. Davis’s style of sweet reasonableness, often highly effective, had no impact on the Prime Minister’s rhino hide. Just minutes before the UK recession was finally confirmed, the PM delivered a familiar version of events. This was an international crisis. All countries were affected. Nobody saw it coming.

That’s all partly true, but the PM is far from innocent. He has to bear responsibility for past policies that amplified the credit crunch and made Britain particularly vulnerable to its cruellest effects. Here are seven points that Davis might have made if he’d been allowed to get a word in edgeways.

1. Britain’s growth of the 1997-2007 boom years was built not entirely on genuine economic advances but on a self-feeding bubble of rising debt and house prices. Many people were warning of the lopsided shape of growth throughout his boom years. Mr Brown’s claim of ten glorious years sounds no more convincing than Hitler, in the bunker in 1945, boasting of five years of military victories from 1938 to 1942. Few other peoples are in as much personal debt as the British.

2. Mr Brown as Chancellor chose to ignore the mushrooming growth of the balance sheets of UK-authorised banks. In 1997, the banks were moderately sized, on the scale of the wider economy, whose taxpayers ultimately underwrote them. Ten years later, they dwarfed the economy. No other major country has had such disproportionately big banks.

3. As head of the Treasury, in charge of City regulation, he fostered the light regime that made London the centre for the creation and distribution of many of the toxic products now congealing in the financial system. Second only to Wall Street, the City’s role in the crunch has left Britain more exposed than other countries.

4. He chose to ignore the housing bubble. He actually called it a “bubble” as early as 2005, but still did nothing to stop it inflating for another two years. That ensured the bursting phase is now all the more extreme. Lending curbs would have been hard, but not impossible.

5. In spite of roaring tax revenues he left the public finances in poor shape for when the crunch hit. If Britain in 2007 had been in strong surplus, it would have been much easier to turn the public spending tap on now without alarming foreign investors.

6. He pushed up salaries in the public sector with little thought for the additional unfunded pension liabilities created, now approaching £1,000 billion. If there is a run on the pound, it may be as much about those liabilities as the bank rescue bill.

7. He made hiring people less attractive. National insurance contributions, a tax on jobs, were raised again and again. Red tape worsened. And using employers as unpaid tax collectors added to the burden. Even those employers capable of hiring are in no mood to do so. Not a happy state of affairs when 2,500 people are being sacked each day.

Unfortunately it isn't a case for the prosecution just yet.

The media are certainly on the turn now though, with the exception of a few died in the wool Keynsians like Kaletsky and Steltzer, who most people ignore anyhow.

Let's hope Evan has read this and will be better prepared next time.........

Share this post


Link to post
Share on other sites
Guest mattsta1964
http://business.timesonline.co.uk/tol/busi...icle5576686.ece

Unfortunately it isn't a case for the prosecution just yet.

The media are certainly on the turn now though, with the exception of a few died in the wool Keynsians like Kaletsky and Steltzer, who most people ignore anyhow.

Let's hope Evan has read this and will be better prepared next time.........

He works for the BBC mate

You're weren't seriously expecting him to give Broon a proper hard time were you?

When the economy has completely collapsed, the BBC will still be telling everyone how wonderful Broon is

Share this post


Link to post
Share on other sites
He works for the BBC mate

You're weren't seriously expecting him to give Broon a proper hard time were you?

When the economy has completely collapsed, the BBC will still be telling everyone how wonderful Broon is

I don't think that's the case. As PM, he probably gets to preview the questions. Every single TV channel fawns over him when he's on, not just the the BBC.

Share this post


Link to post
Share on other sites
I don't think that's the case. As PM, he probably gets to preview the questions. Every single TV channel fawns over him when he's on, not just the the BBC.

Last year, Fern Britten, live on This Morning, strayed off message and made Gordon look stupid by asking a few faux naive questions.

Funnily enough, shortly afterwards, a lot of her dirty linen was laundered in the press <_<

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.