Bye Bye AAA rating

[I1L2T3]

I don't see how thei actions have made it worse. Cut public spending and cut taxes to encourage growth seem their main plans. What is wrong with them?

 

Overall tax burden has increased. Spending has increased.

 

Since 2010 there have been almost 300 tax rises. Taxes will be 15% higher (in real terms) in 2015 than in 2010

 

http://www.publicservice.co.uk/news_story.asp?id=22006

 

---------- Post added 23-02-2013 at 22:51 ----------

 

The growth of the past decade was stimulated by excessive debt which lead to the global financial crisis, people are now paying back some of this debt, they aren’t borrowing as much as before, so can’t spend as much as before, so how do you expect the economy to grow.

The growth we saw just after the financial crisis was also stimulated by debt, and debt caused the financial collapse. Bit of a catch 22 again, if you want growth then we need more debt, more debts will just lead to another crash, one can’t borrow excessively forever, sooner or later borrowing as the slow to manageable levels but as it slows the economy will shrink, it unavoidable.

 

It's not me who expected the growth when the Tories got in. It was George Osborne. His whole deficit reduction plan depends on it.

[Anna B]

Please explain how this government is responsible for the massive uncontrolled housing bubble which caused housing to be over priced."]

 

As well as causing mass unemployment from which this country never truly recovered, Margaret Thatcher deregulated the banks turning it into a freeforall, (remember Yuppies?) Subsequent governments of both parties continued with more deregulation, and lack of checks in the system.

 

Banks were overtaken by greed and lost all integrity. Salaries rose to rediculous levels and huge bonuses became a way of life. To make more money faster they couldn't lend money fast enough. They looked for new markets to lend money to - The Poor! Then disguised the risky loans in dodgy bonds.

 

Governments failed in their duty to keep banks in check and gave the responsibility to the Bank of England, so the Bankers were policing the Bankers. (Very cosy)

 

Whistleblowere who could see what was happening were ignored or more often dismissed.

 

Top salaries rose across the board to keep up with the bankers. Ordinary salaries did not keep pace.

 

Politicians spent the money from the banking wealth windfall to keep themselves in power by using it to ingratiate themselves with the public.

 

When it all collapsed the government didn't dare send any bankers to prison because the government knew they had been complicit, and if the bankers fell so would they.

 

They used phrases like 'nobody saw this coming' (knowing full well it had been all over the internet for years.) 'We're all in this together' (When clearly we are not) and 'We've all been spending too much...(meaning you lot have.)

 

And silly s**s on here believe them and waste their time trying to defend them....

[*_ash_*]

Please explain how this government is responsible for the massive uncontrolled housing bubble which caused housing to be over priced.

 

As well as causing mass unemployment from which this country never truly recovered, Margaret Thatcher deregulated the banks turning it into a freeforall, (remember Yuppies?) Subsequent governments of both parties continued with more deregulation, and lack of checks in the system.

 

Banks were overtaken by greed and lost all integrity. Salaries rose to rediculous levels and huge bonuses became a way of life. To make more money faster they couldn't lend money fast enough. They looked for new markets to lend money to - The Poor! Then disguised the risky loans in dodgy bonds.

 

Governments failed in their duty to keep banks in check and gave the responsibility to the Bank of England, so the Bankers were policing the Bankers. (Very cosy)

 

Whistleblowere who could see what was happening were ignored or more often dismissed.

 

Top salaries rose across the board to keep up with the bankers. Ordinary salaries did not keep pace.

 

Politicians spent the money from the banking wealth windfall to keep themselves in power by using it to ingratiate themselves with the public.

 

When it all collapsed the government didn't dare send any bankers to prison because the government knew they had been complicit, and if the bankers fell so would they.

 

They used phrases like 'nobody saw this coming' (knowing full well it had been all over the internet for years.)

 

'We're all in this together' (When clearly we are not) and 'We've all been spending too much...(meaning you lot have.)

 

And silly s**s on here believe them and waste their time trying to defend them....

 

You've quoted 'how is this gov't responsible for massive housing bubble etc'... then started with the boring old Thatcher rubbish (which isn't this government anyway), then continued with all the above bold which was the last government (which isn't this government), then sneakily merge in stupid quotes that this last lot used to get in power - to make it look like all the fault lies with them. And you call have the audacity to call people in here silly s**s?

[Mecky]

Was Moodys one of the agencies that gave good credit ratings to those toxic debts?

 

This could well be the start of a down-would spiral, which some were hoping for just so they could say "I told you so" while in the grand scheme of things, I doubt it will have much effect.

 

If Osborne did stake everything on the UK keeping its AAA rating, and this is not a media created headline, he should go.

 

But you can't negate an argument like that and try to give yourself some credit just because you didn't listen and refused to accept what was happening.

[MrSmith]

It's not me who expected the growth when the Tories got in. It was George Osborne. His whole deficit reduction plan depends on it.

 

It’s not uncommon for politicians to make promises they simply cannot keep, especially during elections. I can’t think of any government that as ever kept all its promises, and there are many things that have come to light since the election which have slowed world economic growth.

 

---------- Post added 24-02-2013 at 08:13 ----------

 

Please explain how this government is responsible for the massive uncontrolled housing bubble which caused housing to be over priced.

 

 

As well as causing mass unemployment from which this country never truly recovered, Margaret Thatcher deregulated the banks turning it into a freeforall, (remember Yuppies?) Subsequent governments of both parties continued with more deregulation, and lack of checks in the system.

Unemployment existed prior to 1979 with many economically inactive people not able to claim unemployment benefits. Women were more likely to be at home and not claiming benefits, more women entering the work place and the population increasing lead to a greater demand for jobs at a time when increased mechanisation was making people unnecessary. Equality, human progress and population expansion created the problem in which there aren’t enough jobs for everyone. So not the fault of this Governmnet.

 

 

Banks were overtaken by greed and lost all integrity. Salaries rose to rediculous levels and huge bonuses became a way of life. To make more money faster they couldn't lend money fast enough. They looked for new markets to lend money to - The Poor! Then disguised the risky loans in dodgy bonds.

Greed is a human condition without which we would have significantly less than we have now, which in my opinion wouldn’t be a bad thing. Greed drives people to succeed which creates economic growth and jobs. So again not the fault of this government which as increased banking regulations.

 

 

 

 

Governments failed in their duty to keep banks in check and gave the responsibility to the Bank of England, so the Bankers were policing the Bankers. (Very cosy)

 

Whistleblowere who could see what was happening were ignored or more often dismissed.

Yes and it wasn't this Government, so not their fault.

 

Top salaries rose across the board to keep up with the bankers. Ordinary salaries did not keep pace.

 

Politicians spent the money from the banking wealth windfall to keep themselves in power by using it to ingratiate themselves with the public.

 

 

When it all collapsed the government didn't dare send any bankers to prison because the government knew they had been complicit, and if the bankers fell so would they.

 

And again not the fault of this Governmnet.

 

 

They used phrases like 'nobody saw this coming' (knowing full well it had been all over the internet for years.) 'We're all in this together' (When clearly we are not) and 'We've all been spending too much...(meaning you lot have.)

 

And silly s**s on here believe them and waste their time trying to defend them....

 

Many people saw it coming but sadly greed took over and many ordinary people jumped on the band wagon, but again not the fault of this government.

[WeX]

But you can't negate an argument like that and try to give yourself some credit just because you didn't listen and refused to accept what was happening.

 

I suppose the only way to know if things would be any different if we had stuck to Labours opposite approach. Spend your way out of debt would be to give an example of a country comparable to the UK that did just that and has fared better. Do you know of any?

[MrSmith]

I suppose the only way to know if things would be any different if we had stuck to Labours opposite approach. Spend your way out of debt would be to give an example of a country comparable to the UK that did just that and has fared better. Do you know of any?

 

You could argue that many countries tried for several years to spend their way out of trouble just before the financial collapse, and it was those policies which ultimately lead to the financial collapse, they should have allowed the world economy to slow down after the dot com bust.

[ricgem2002]

You could argue that many countries tried for several years to spend their way out of trouble just before the financial collapse, and it was those policies which ultimately lead to the financial collapse, they should have allowed the world economy to slow down after the dot com bust.

so it wasnt all labours fault ?

 

---------- Post added 24-02-2013 at 13:10 ----------

 

I suppose the only way to know if things would be any different if we had stuck to Labours opposite approach. Spend your way out of debt would be to give an example of a country comparable to the UK that did just that and has fared better. Do you know of any?

so the condems idea of borrowing more is working ?

[MrSmith]

so it wasnt all labours fault ?

 

Of cause not but as a key player they need to shoulder some responsibility.

 

They are however to blame for the UK housing bubble which is the primary cause of many of our problems now.

[WeX]

I suppose the only way to know if things would be any different if we had stuck to Labours opposite approach. Spend your way out of debt would be to give an example of a country comparable to the UK that did just that and has fared better. Do you know of any?

 

so the condems idea of borrowing more is working ?

 

I'm sorry but I fail to see how that is an answer to my question.