Brown's Christmas Present

Isn't Brown that gift that keeps giving. After it was announced that economy shrank by 0.4%, which officially means that this is the longest recession since records began. Brown vowed to restore growth and reform the financial sector by Christmas. Isn't that like getting back the foot spa you gave someone else for Christmas last year.

I can't help but think though - why when writing out that big fat taxpayer funded cheque didn't he issue some terms? Banks sole purpose is to make money, they are by their nature greedy, a little native to be surprised when they get excessive. Which leads to asking why given the taxpayer is the main share holders in these companies giving out billions in bonuses, doesn't our representatives say something? I don't see the problem with a company that is part nationalised that the main share holder has a say over pay, particularly since that share holder was the one that propped their failing company up.

There is also at long last to be announced some consumer protection measures, which for a Tory Labour government is about time. This is really the way to reform the financial sector, empower the consumer. If the banks are foxes in charge of the hen house, arm those hens with tasers.

The G20 Again

Déjà vu non? They meet, they agree that something must be done, they meet, they agree something must be done. As long as we are in agreement, that's the main thing.

Money, Money, Money

The G20 finance ministers' are meeting this weekend and Nick Dearden on the Guardian has written an interesting article on ditching the dollar for buying oil. There has been growing talk of a Global Bank for some time now, but America had dominated the banking world, now however China does. There is a very interesting graph on the FT, that shows the influence that China will have on these talks. As an added bonus, if you move the slider at the bottom of it, you can watch Britain's wealth go titsup.com.

This subject however is of particular interest to me, given I'm a firm believer in following the money. Greed has shaped our history for thousands of years more land, gold, power, influence, whatever form it takes it will play a big factor in whether anything happens with moving away from the dollar.

Adams in the Telegraph Is On Form

Ouch!

Fat Cats . . . . .

Wonderful cartoon from Morten Morland.

Financial Regulation, Regulation, Regulation

Bit of a contrast with what the governor of the Bank of England and Alistair Darling say about the "R" word. Yet this recession illustrates that people need to be protected from the banks and banks need protecting from themselves. This situation of putting foxes in charge of the hen house doesn't work.

Some degree of regulation is needed, what form and how much is obliviously a debate in itself. What I would like to see though is greater protection for consumers, going into a bank is like walking into a tigers den. Credit cards, loans, mortgages, over drafts all at a competitive rate of *6%. Obama has announced plans for a consumer body that would stop 'predatory lending', given this was part of the catalyst for this recession, it makes sense to address that. Yet what does our government do, nothing.

Alistair Darling says "more needed to be done, notably to increase the availability of credit." Why didn't they make that part of the criteria for bail out money? Who on earth signs a cheque for billions without having terms. I guess the same people who made Fred Goodwin a millionaire and a Sir. If the nationalised banks started lending others would have followed suit, if they lowered interest rates on mortgages, other banks would have needed to be competitive. That's one area that would really help out a lot of home owners and people trying to get on the property ladder. Yet nothing.

It really disappoints me that from this recession, so much could be done to improve and stabilise our economy. Like supporting our industry, products have to be made and food has to be grown, it makes sense to me at least to spread the risk and not just rely on financial services. Particularly by supporting industries essential to everyday life. Yet nothing, this will become a missed opportunity.


* Terms and conditions apply 2 months bonus rate only, normal rate 25%.

The Best Way To Rob A Bank Is?

There is an interesting video that interviews financial regulator William K. Black about banks - The financial industry brought the economy to its knees, but how did they get away with it? - It's focuses on America, but there are some very interesting parallels with the situation in Britain. To forewarn the intro is a bit long-winded but worth waiting out.

Looks like Brown should have gone to Europe

While jet setting in South America, a Berlin magazine “obtained” and published the draft agreement Brown hopes to secure at the G20. It stated that he wanted a “$2 trillion” global fiscal stimulus. The Czech Republic, France and Spain's leaders have joined together to echo the comment, nein Herr Brown.

I'm no economist but do think they have a valid point being cautious and stopping to look at the cause of the problem. In Britain financial services alone make up almost a third our GDP. Good business is spreading the risk. Yet we can't compete globally with our exports industry and we've got so few farms left now, we're not even self sufficient.

That leaves the city (ironically) to be the one to get us back on track. Bankers can't make the money needed while being handcuffed, at the same time no regulation is like putting foxes in charge of the hen house. A balance needs to be struck with protecting people, regulating credit, spreading the risk by investing in other industries and I think we can all agree getting a better monitoring service.

Is there a problem more fundamental though, as how can you restore the economy when people don't have confidence in it? People will hold on to their money while they believe there is no light at the end of the tunnel, survival instincts will just kick in. Brown is part of that problem, he is too synonymous with the cause for people to believe he can fix it. 30 years after James Callaghan's vote of no confidence, is it time for someone in parliament to act on what people think.

UKFI Vote On Freddy's Pension

UKFI the body created to handle the government’s stakes in RBS, are going to vote on Fred Goodwins Pension. The out come is not expected to be in his favour, though either way it's not legally binding, they just hope it will put "pressure" on him and show their disappointment.

While waiting for public anger to reach breaking point, there's an on-line game were you can claim money back from Fred.

The Court of Public Opinion - Harriet Harman

Harriet Harman's desperation to be the next prime minster is showing again. Every time I read anything she says though, I can't help but be overwhelmed, it's like opening an oven being blasted in the face with hot air and just hoping your eyebrows are still intact after. She's said about Sir Fred Goodwin's pension.

""The prime minister has said that it is not acceptable and therefore it will not be accepted. It might be enforceable in a court of law, this contract, but it’s not enforceable in the court of public opinion and that’s where the Government steps in."

Bit of a slippery slope changing contract laws isn't it? And what is there really to contest here? If you sign a contact you agree to it, unless there's a clause to say that payment won't be made under the terms XYZ, then government approved it, Goodwin indeed for some.

New Labour increased peoples anger in order to distract and point the finger at someone else, yet there's three fingers pointing right back at them. The terms "terrible misjudgement", "money for nothing" and "doing the honourable thing", can easily applied to the people saying them.

Count adjourned.

Halifax Howard

In the new advert for Halifax what's happened to the all singing and dancing Howard? Thrown aside like a dirty dishcloth that's what, handed his notice while the sound of "Money's Too Tight Too Mention" softly played in the background. Who could of foreseen the credit crisis reaching heights like this.

Here he is in all his glory, lest we forget.

Methinks Prescott Does Protest To Much

John Prescott's campaign against banker bonuses creates an interesting parallel when you change the word "banker" for "politician" and "counter staff" for "tax payer." I of course don't mean in terms of rhyming slang.

This ideal of "no bonuses for failures" or "greed culture" really does beg the question - how can our politicians criticise, when they themselves are no better? It's like being a judge with a criminal record. So what's a 93% victory really, a token gesture to keep up appearances, but really the same old self serving dogma. As what's in the 7% loss? A job for the senior bankers advising Gordon Brown on the economy?

This is just another clear sign that politics really needs to change, but how is it to do that when it's so party focused. Would we get more of the leaders we need rather than they need, if we were able to vote on the party leader nominations? There needs to be a line drawn somewhere in the ground, but will we ever be able to get this balance with politics so closed off to us?

Perhaps the voting polls show a light at the end of the tunnel. The Lib Dems and New Labour are drawing ever closer to one another and since New Labour has inhibited our ability to hold them to account by others means. Would it be enough of a shock wave if they were to become the third party after this election? It would need large amounts of people to tactically vote, are we that angry?

I say, go forth and multiply!

Along the lines of this subject, there's an interesting article by Simon Heffer that looks at the response to Jacqui "fiddler" Smith grabbing money like she's in the Crystal Dome.