The Government has got the wrong idea!

[I1L2T3]

Lots of you are confusing government overspending with the banking crisis.

 

You're wrong. The Cons-Libs would like you believe this but it isn't true.

 

Unless you want to believe that all the fiscal stimuli applied during the recession and austerity measures being implemented right across Europe right now are the fault of Brown and Darling as well. We're in the same position as many other countries primarily as a result of a recession triggered by the banking crisis.

 

We had a growing but manageable deficit before the recession happened. And plans to deal with it too. If you don't believe me go check the figures unstead of sqwarking back the Cons-Libs spin like a parrot.

[Rioja]

Here's a good area to start cutting back on

 

MP's Golden Goodbye payments

[I1L2T3]

Here's a good area to start cutting back on

 

MP's Golden Goodbye payments

 

Now I can agree with that

[Tony]

You're wrong. The Cons-Libs would like you believe this but it isn't true.

 

Unless you want to believe that all the fiscal stimuli applied during the recession and austerity measures being implemented right across Europe right now are the fault of Brown and Darling as well. We're in the same position as many other countries primarily as a result of a recession triggered by the banking crisis.

 

We had a growing but manageable deficit before the recession happened. And plans to deal with it too. If you don't believe me go check the figures unstead of sqwarking back the Cons-Libs spin like a parrot.

 

You have a grasp on history and economics very similar to those who were just voted out.

 

Government overspending and the banking crisis are not the same thing.

[Wildcat]

Here's a good area to start cutting back on

 

MP's Golden Goodbye payments

 

200 MPs get less than a sixtyeth of what one of the Tax payers alliance West Midlands backer's owns.

 

http://taxpayersalliance.org/news/the-secret-millionaires

 

I know what offends me most, and that is the super rich being jealous of a relatively small amount of remuneration received by people that are actually doing a worthwhile job.

[Wildcat]

You have a grasp on history and economics very similar to those who were just voted out.

 

Government overspending and the banking crisis are not the same thing.

 

Of course you are right. Overspending is the Keynesian solution to a crisis created in the private sector by the spread and failure of monetarism.

 

We should indeed learn and remember our history, Keynesianism was the considered economic response to the Wall Street crash, which history judged to be the most successful method for bringing a country back in to profit. The rejection of Keynesianism in the 80s was precisely what led to the banking crisis today. We should learn our history.

[brianthedog]

The fault for all this lies squarely at the doors of the investment banks, whose greed led them to go looking for fresh markets that they could exploit, no matter how unsuitable and unsafe. They knew they were subprime but changed the rules and safeguards to suit as they went along, and sacked anyone who offered up objections, as long as they continued to get their massive bonuses they didn't care, (and still don't.)

 

Actually, the influx of foreign investment from more prudent countries served to reduce the cost of borrowing - the interest. Thanks to this, GB got a little excited and kept changing his view of the economic cycle to ensure he stayed in line with his economic principles whilst borrowing way beyond our means. Be sure not to confuse the debt we're all in with the recession. Interesting article here.

 

I have always lived within my means, have never been in debt, and know what I can afford. (The concept of saving up for something before you buy it seems to be long gone.)

That doesn't mean I necessarily blame borrowers either. Maybe they were under the impression that banks gave sound advice and wouldn't lend money to people who weren't in a position to pay it back. (I remember naively saying this to someone.)

 

How can you not blame borrowers? You cannot obtain credit unless your 18 - once you're 18 you should be in a position to make your own informed decisions. If the banks were lending recklessly then shouldn't the FSA have been speaking out?

[Tony]

Of course you are right. Overspending is the Keynesian solution to a crisis created in the private sector by the spread and failure of monetarism.

 

We should indeed learn and remember our history, Keynesianism was the considered economic response to the Wall Street crash, which history judged to be the most successful method for bringing a country back in to profit. The rejection of Keynesianism in the 80s was precisely what led to the banking crisis today. We should learn our history.

 

Of course you are right, except that overspending was taking place for many years before the banking crisis.

 

The Wall Street Crash took 10 years and a subsequent world war to recover from.

[Wildcat]

Actually, the influx of foreign investment from more prudent countries served to reduce the cost of borrowing - the interest. Thanks to this, GB got a little excited and kept changing his view of the economic cycle to ensure he stayed in line with his economic principles whilst borrowing way beyond our means. Be sure not to confuse the debt we're all in with the recession. Interesting article here.

 

Nice to know we are an investment opportunity of choice for prudent investors... How exactly is that supposed to be the negative you have twisted it in to?

 

How can you not blame borrowers? You cannot obtain credit unless your 18 - once you're 18 you should be in a position to make your own informed decisions. If the banks were lending recklessly then shouldn't the FSA have been speaking out?

 

What the hell has my decision to cut my living expenses by about a half through getting a mortgage rather than paying £500 a month to rent a flat got to do with the recession? Why am I suddenly to blame for the bad debts of the banks

[brianthedog]

Nice to know we are an investment opportunity of choice for prudent investors... How exactly is that supposed to be the negative you have twisted it in to?

 

 

 

What the hell has my decision to cut my living expenses by about a half through getting a mortgage rather than paying £500 a month to rent a flat got to do with the recession? Why am I suddenly to blame for the bad debts of the banks

 

Foreign investment isn't a negative. But using it as an excuse to borrow money we can't afford as the rates are lower is clearly a bad idea.

 

I can't help but think your second question is being deliberately obtuse. The recession is directly caused by over-exposure to debt secured against a fragile housing market - hence anyone who is a borrower has contributed to this issue. Interesting how the previous government kept pointing the finger at banks for irresponsible lending but it's become increasingly clear they were involved in irresponsible borrowing.