Governments handling of the crises.

trashcan_2

How do you rate the governments handling of the crises?

$h@d0w

Ten out of ten.

cheekykid

$h@d0w wrote: »

Ten out of ten.

Seconded

!!

mobfant

Handling over recent weeks - I think they've done quite well (as an icesaver, perhaps I'm biased) but they had a major part in causing the crisis so they can't be forgiven.

colin79666

8/10 (for the handling this week) although time will tell.

5/10 overall as they are partly responsible for creating the overall spend for today attitude.

dkmax_2

trashcan wrote: »

How do you rate the governments handling of the crises?

There are two overlapping elements to this - the reality of liquidity and the issue of confidence. The difficulty is that extreme government action will not instill confidence and their actions may actually stoke inflation (as much as they'll deny it or underestimate it).

Remember this whole debacle kicked off between the Japanese carry-trade and the reaction to the Sept 11 attacks. It was this latter government action and subsequent inaction in the face of careless lending that created the entire mess. While this is unprecedented, it was entirely predictable and predicted. Read the IMF warnings over the last few years.

Do you think it appropriate to congratulate the arsonist for attempting to put out the fire that they started?

nilrem_2

Do you think it appropriate to congratulate the the arsonist for attempting to put out the fire that they started?

As someone said when the ship is sinking you don't stay on board arguing over whose fault it is or why; you get in the lifeboats and save yourself and do the analysing later.

For my part I consider that Alastair Darling has done a good job in the circumstances and I have sent him an email to that effect.

I am of course extremely pleased that he is helping Icesave customers.

dkmax_2

nilrem wrote: »

As someone said when the ship is sinking you don't stay on board arguing over whose fault it is or why; you get in the lifeboats and save yourself and do the analysing later.

That doesn't mean that you give three cheers to the captain while manning the liferafts either.

For my part I consider that Alastair Darling has done a good job in the circumstances and I have sent him an email to that effect.

I am of course extremely pleased that he is helping Icesave customers.

I disagree. What exactly has Darling done? The markets are not impressed.

Icesave customers should not have got covered by any additional protection at the expense of tax-payers. They knew the risks when they opened the accounts so why make up for their mistakes in retrospect? Is there no accountability these days. Borrow too much, no problem. Save in dodgy banks, no problem.

You are simply paying people at the expense of others. Indeed, your money will be devalued and your taxes will rise to cover it.

EagerLearner

dkmax

Icesave customers should not have got covered by any additional protection at the expense of tax-payers. They knew the risks when they opened the accounts so why make up for their mistakes in retrospect? Is there no accountability these days. Borrow too much, no problem. Save in dodgy banks, no problem.

So therefore all Northern Rock customers should have lost their money for being 'foolish' enough to go for a risky bank and we should all have an opinion on whether *our* tax money gets paid towards war, olympics, banks that collapse etc. Thankfully we can have an opinion but the government has the serious job of deciding so we can all sleep better at night. As a tax payer, I pay my tax towards whatever is needed - I have no choice. So the haters should just quit because this is going ahead just like Northern Rock did.


Alastair has done quick and decisive work in the last 24 hours, and the bank leaders also today with the interest rate decision. I don't think I have seen such strong cohesion as of yet, so maybe this will help. Or, for the pessimist in me, maybe this is the tip of the ice(sorry)berg because the party is definately over now, and the only ones benefitting from clean up are the traders in the Bahamas... I wonder who they bank with?

Nervous_Norvus

Think about this. Post Office savings accounts are backed by an Irish bank. Ireland had to offer 100% backing to all customer deposits a few days ago because one or two Irish banks were on the verge of failing. Now we see Iceland's undertakings to British depositors being reneged, who is to say Ireland might not pull the same stunt? If a few percent of the people with savings in the Post Office thought this way and pulled their savings, it could trigger the collapse of the Irish bank, and maybe the Irish government would have reneged too. It is not just a case of being nice to Icesave customers. Rather it is a case of trying to prevent an ever widening circle of panic.

darktrader

4/10

They will be using our money to finance this, either as Taxpayers or as sensible savers in British Banks and Building Societies if the money comes from those Banks. Those of us who are content with a reasonable return and not constantly chasing those eye-catching, Internet-Only higher rate Savings. Those of us who have borrowed within our means.

Any sitting Government would have done as much in current circumstances. But don't forget that the seeds of this debacle were sown during this Governments Administration and they stood by and watched. Lest you forget...
125% mortgages.
7xSalary multiples for mortgages.
Flagrant breaking of what little regulation there was by the Mortgage Industry.
An ineffective and toothless FSA (Until very recently)
Buy-To-Let tax breaks for Landlords.
Internet-only Savings.
The tacit Government encouragement for excessive borrowing and the rise of Personal Debt.
The oft-repeated phrase "The end of Boom and Bust..."
The deafening silence on Bonus-driven short term instant results in Banks and Investment Institutions.
The selling off from 1999 to 2002 in a series of Auctions a large portion of our Gold Reserves at a fraction of its current value.

All in all their record is appaling.