Bedders Posted June 11, 2010 Share Posted June 11, 2010 http://news.bbc.co.uk/1/hi/business/10290933.stm If a country with the manufacturing output if Japan can get itself in a mess like this what of the UK? Remember Japan has the worlds 2nd biggest economy after the USA, whereas the uk just scrape in the top 10. I think Labour's policy was shortsighted & destined to failure & possible public outcry. We'd have no doubt gone back down the route of another winter of discontent, from the 70s, last time Labour was in. (That's not to say it won't happen for another reason now we have change-that is cuts to pay for it) But as least in admitting we have to deal with it we'll have less chance of doing 'bust'. The outcome of this should be a review on possible things that caused it all. Gordon Brown taking the pension cap off of retiremenet pensions, meaning if some high flyer gets it wrong he / she just legs it nearly emptying the pension pot ala Sir Fred Goodwin. If someone has to be a little more responsible for their actions it may motivate them in their job, instead of having some gold-plated safety parachute! Another thing we need to do is install a review of other linked economies. That is we had 6 months notice from the banking crisis in the USA, but what caps we installed to limit toxic debts here...........er none. We let the debt continue to rocket. Things need to be in place to review that this cannot be allowed to happen again. Yes i'm all for 'laissez-faire' economics but when it spirals out of control regulation needs to be the safety net...not musical chairs for blame. http://www.debt-clock.org/ Look at how quick this is spinning. Tough times are ahead but look at the alternative.....see Japan. Link to comment Share on other sites More sharing options...
Anna B Posted June 11, 2010 Share Posted June 11, 2010 It was caused by the banks which is why the problem is global. The Government's actions made it worse. They had plenty of warning, much more than 6 months, but it was ignored. Link to comment Share on other sites More sharing options...
epiphany Posted June 11, 2010 Share Posted June 11, 2010 It was caused by the banks... Which, don't forget, businesses and individual consumers helped to capitalise by voting with their purchasing power. Link to comment Share on other sites More sharing options...
Anna B Posted June 11, 2010 Share Posted June 11, 2010 Which, don't forget, businesses and individual consumers helped to capitalise by voting with their purchasing power. This 'we've all helped to create the problem therefore we all have to suffer to sort it out' is mainly government and media spin to stop us rioting in the streets. Our contribution was a drop in the ocean compared to what governments and banks were lending to each other. Link to comment Share on other sites More sharing options...
epiphany Posted June 11, 2010 Share Posted June 11, 2010 This 'we've all helped to create the problem therefore we all have to suffer to sort it out' is mainly government and media spin to stop us rioting in the streets. Our contribution was a drop in the ocean compared to what governments and banks were lending to each other. All I said was we helped to fund their operations. There's no getting around it I'm afraid. If they had no custom they would have no capital. Link to comment Share on other sites More sharing options...
Mecky Posted June 11, 2010 Share Posted June 11, 2010 It was caused by the banks which is why the problem is global. The Government's actions made it worse. They had plenty of warning, much more than 6 months, but it was ignored. Yeah and who degegulated the banking industry in 1980? Link to comment Share on other sites More sharing options...
tonkatoy Posted June 11, 2010 Share Posted June 11, 2010 The government's debt has nothing to do with banks or anything else. It is down to government spending being higher than tax revenues. The global down turn was merely a side show and a catalyst. The government has spent far more money than it receives through taxation and claimed that by growing the economy future taxes would rise to pay for the overspend. It is like a person living beyond their means on the expectation of eventally getting a higher paid job to pay to pay off their loans and credit card bills. Sadly we ignored the possibility of redundancy and failed to make contingency plans for when things went wrong. Link to comment Share on other sites More sharing options...
tonkatoy Posted June 11, 2010 Share Posted June 11, 2010 Yeah and who degegulated the banking industry in 1980? That would be Gordon Brown when he handed reulation to a newly formed QUANGO the FSA in 1997. Link to comment Share on other sites More sharing options...
wednesday1 Posted June 11, 2010 Share Posted June 11, 2010 Yeah and who degegulated the banking industry in 1980? Now let me think erm...was it done by the same people who brought us the 'big bang' a few years later as the City was deregulated? Link to comment Share on other sites More sharing options...
epiphany Posted June 11, 2010 Share Posted June 11, 2010 The government's debt has nothing to do with banks or anything else. It is down to government spending being higher than tax revenues. The global down turn was merely a side show and a catalyst. The government has spent far more money than it receives through taxation and claimed that by growing the economy future taxes would rise to pay for the overspend. It is like a person living beyond their means on the expectation of eventally getting a higher paid job to pay to pay off their loans and credit card bills. Sadly we ignored the possibility of redundancy and failed to make contingency plans for when things went wrong. Whilst the things you pointed out are of course significant causes of government debt, it doesn't have nothing to do with banks. Governments must pay interest on their borrowings from private institutions, so banks compound any debt the government owes. Most of that interest will not cycle back into the real economy but rather end up as hoarded wealth in some offshore trust. Link to comment Share on other sites More sharing options...
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