Tuesday, October 21, 2008

Gordon Brown is the cause of the problem with the banks

Video - 1992

UK prime minister Gordon Brown is the cause of the UK's money problems.

In recent years, Gordon Brown has:

1. Scorned demands for tighter regulation of banks and the economy. (Be wary of bull market in Browns)

2. Ridiculed the German government for worrying about highly leveraged hedge funds.

3. Ignored warnings from the IMF that Britain risked a credit and housing bust.

Now the UK is having to borrow a lot of money.

According to the Financial Times, 21 October 2008, the UK government borrowed an extra £37.6bn in the first half of the year.

This half-year borrowing figure is the highest since the second world war.

And the situation is expected to get worse as the economy weakens and tax revenues decline. (Brown set to borrow more)

And Gordon Brown has outraged shareholders of Lloyds Bank and Bank of Scotland (HBOS) by arranging a most unsuitable merger.

Mr David McLachlan, in a letter to the Financial Times, 21 October 2008, writes:

"Lloyds TSB has never needed to be rescued – it has a sound business model, is conservatively funded, and is highly profitable and well able to withstand the current recession... If... the takeover of HBOS proceeds... then a very substantial amount of the value in Lloyds TSB will have been transferred needlessly, and arguably illegally, from existing shareholders to the government." - Outraged Lloyds shareholder not alone

The purpose of the merger seems to be political - to help to damage the Scottish economy and frustrate the nationalists.

Gordon Brown is not the first UK politician to get into financial difficulties.

Anthony Barber, in the early 1970s, liberalised the banking system and this contributed to boom followed by bust.

Nigel Lawson, in the 1980s, produced tax cuts which led to a housing bubble which eventually burst.

Hedge Funds


Thursday, October 16, 2008

"Author of the age of irresponsibility"

Scotland's Alex Salmond has blamed Gordon Brown for the scale of the global financial crisis. (Salmond blames PM for global financial crisis )

The Scottish First Minister branded Gordon Brown the "author of the age of irresponsibility"


Tuesday, October 14, 2008

Gordon Brown has "presided over what has become the biggest economic disaster of our lifetime."

Gordon Brown is a very bad prime minister of the UK.

According to George Osborne, UK Conservative Party economic spokesman (George Osborne attacks Gordon Brown.):

1. Gordon Brown has "presided over what has become the biggest economic disaster of our lifetime."

2. "It was in Britain, not America, where families borrowed more than any in the world."

3. "Our Government could and should have used the good years of global growth to set aside money for a rain day...

"That's what many governments did by building up budget surpluses, such as they did in Australia and Sweden...

"In Britain, Gordon Brown racked up the biggest budget deficit in the western world."

According to an article at Wikipedia, Brown has not helped the poor and has not reduced taxes on the poor:

1. Anti-poverty: The Centre for Policy Studies found that the poorest fifth of households, which accounted for 6.8% of all taxes in 1996–7, accounted for 6.9% of all taxes paid in 2004-5. Meanwhile, their share of state benefit payouts dropped from 28.1% to 27.1% over the same period. (Poor lose out in Brown's tax reforms)

2. Tax: According to the OECD UK taxation has increased from a 39.3% share of gross domestic product in 1997 to 42.4% in 2006, going to a higher level than Germany. (General Government Outlays as percentage of GDP (Microsoft Office Excel table)

Unicef ranks the UK last out of 21 developed countries for children's well-being. (UK is accused of failing children)

Gordon Brown has kept UK troops in Iraq and in Afghanistan.