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Why Labour is the Can Do Nothing Party
handful
Posts: 576 Forumite
I came across this great article just now, sums it up for me, sorry it's a bit long!
WHY LABOUR IS THE CAN DO NOTHING PARTY?
12.01.09, 11:17am
Because Labour has been asset striping. The credit crunch exposed the driving force behind Gordon Brown’s booming economy, ie the property market.
BASIS OF THE BRITISH ECONOMY
Britain has always been a homeowner-based economy - not like the economies of France and Germany, where the majority of people live in rented accommodation. Homeownership made Britain one of the wealthiest and stable economies in the world.
Scarcity of building land, difficulty in getting planning permission and the time it takes to build substantial property using bricks and mortar and with every increasing costs, it all adds up to a very valuable asset that increases in value. Because of this, the majority of people want to get on the property ladder. These assets are the foundation of the British economy and credit ratings upon which stability depends.
In 1992: When Britain joined the European Exchange Rate Mechanism (ERM), it fixed the level of the pound within a band which put the economy under great strain. The UK's prime minister and chancellor Norman Lamont tried desperately to prop up a failing pound. The Chancellor raised interest rates from 10% to 12%, then to 15%, and authorised the spending of billions of pounds to buy up the sterling being frantically sold on the currency markets. But the measures failed to prevent the pound falling lower than its minimum level in the ERM. But because Britain has always been a homeowner-based economy, the only thing that could give under the strain was property. That is why homeowners suffered negative equity and repossessions. Britain had to come out of the ERM but it cost the country 48 Billion pounds.
CHANGE OF THE SYSTEM, Deregulation.
Up until 1997 the Bank of England controlled the financial system. It was common knowledge that mortgages were protected from such abuse, under existing safeguards of regulations and the law, and that mortgages, in particular, were sacrosanct.
Mortgages were only to be used for the purchase of property; loans for all other purchases had to be through a bank loan or hire purchase, which were short term and had a higher rate of interest. Lending banks and building societies were strictly regulated in order to protect homeowners’ and the security of their asset and the valuation upon which mortgage deeds depend. Lending for consumer spending on domestic and luxury goods were kept separate.
However, in 1997, Gordon Brown when Chancellor, decided that he didn’t like that anymore. So he introduced a system were we had, the Financial Services Authority, the Treasury, and the Bank of England, (the Tripartite Authorities) carving up the job amongst them. Just one big problem – when there was a crisis, ‘apparently’ nobody knew who was in charge. The effect of all this – the system unregulated.
The bankers most certainly knew the enormous value of your mortgage, backed by the secure asset of your home, and that mortgage-securities would be the driving force behind a powerful booming economy. They knew they would make a fortune if they could trade them on the US financial markets in the same way as US Government-Sponsored-Enterprises (GSEs). However, bankers knew mortgages couldn’t be traded unless they were taken out of their protective regulation. So how did they get their hands on them?
Well, first, you must know what you are doing, and know how to have them deregulated. By changing the banking system in 1997, banks were able to raise collateral by repackaging mortgages and sell them on in the form of Collateral Loan Obligations (CLOs) and other similar stealth products. These were traded through institutions, but an institution is not called a bank, and therefore operated outside strict bank regulations. This was the key to the unscrupulous bankers making a fortune.
The questions one should keep in mind is, was it Gordon Brown's idea, or the Bankers' idea, or both? Who persuaded who?
The property assets backing CLOs were so valuable, that other loan sharks wanted to get in on the act - adverts started to appeared on national television encouraging homeowners’ to free up equity from their home and to - Spend! Spend! Spend! The banks’ were promoting credit cards – shopping on the high street was a wash with cash.
However, whilst you homeowners’ were sleeping in your beds, unscrupulous bankers were undermining the financial foundations of your property asset, by taking your mortgage out from under strict banking regulation, re packet aging them in the form of Collateral Loan Obligations (CLOs) and similar products, selling them on and gambling with them in volatile markets on US Wall Street, and lost them, resulting in the credit crunch and falling house prices.
WHY DO THE BANKS REFUSE TO LEND?
When Gordon Brown goes to the banks to ask them to lend, the banks want to know: What assets does he have to offer as security for the loan? How does he propose to raise sufficient money to pay back the loan plus interest? Who is to go guarantor and the duration of the loan? What debts dose he already have?
The Banks look at Gordon Brown’s economy bank account and say to him: But Mr Brown you have no assets and you have maxed out all your credit, your credit rating is zero. We told you that if you did not replenish your account by putting liquidity back into you’re your economy account we would, within twelve months, have no alternative but to commence repossessions of homeowners property.
We are sorry that you will be left with a horrendous problem of having to re house these people, that you are in a can do nothing position and that you have to resolve these problems before you can call an election - But Mr Brown, that’s how business works. For example lets look at your record:
Who has presided over record levels of Government borrowing? Gordon Brown.
Who has racked up the biggest budget deficit in the western world? Gordon Brown.
Who bears responsibility for the destruction of Britain's pension schemes and funds through the £5 billion a year tax that he introduced in his first budget? Gordon Brown.
Who is the financial genius who sold off 60 per cent of Britain's gold reserves between 1999 and 2002, at prices which are half today's levels? Gordon Brown.
Who convinced many people of a better future with low inflation and that Britain’s infrastructure would, not only be the best in Europe, but, wait for it, ‘The best in the World’ – and that Britain would be better placed to withstand global financial turbulence than any other country, if they deprive themselves from a rise in wages? Gordon Brown.
Who in desperation to raise revenue scraped a 10p Tax from the bottom of the barrel? Gordon Brown.
Who over the last ten years had been using stealth Taxes to raise revenue? Gordon Brown.
Who, by whatever stealth it takes, is intending to use green taxes, not for the purpose of global warming - but in desperation to finance Britain’s out of control borrowing deficit? Gordon Brown.
Who in 1997 changed Britain’s financial system, the effect of which, the system unregulated and ‘apparently’ with on one in control, the result of which, the Chancellor of the day, in effect, handed over his possession, power and control of Britain’s economy to unscrupulous foreign bankers over which he had no jurisdiction or authority? Gordon Brown.
Who is responsible for a decade of regulatory failure in respect of banks and the financial services industry generally? Gordon Brown.
Who after handing over his possession, power and control of Britain’s economy to unscrupulous foreign bankers, brought back his spin doctor Peter Mandelson to make, speeches which are vague, nebulous, guff, delivered with so-called authority in an attempt to blame his failures on the global down-turn outside his control? Gordon Brown.
Who run in desperation with cap in hand to ask King Abdullah to give Britain more oil, and in return the Saudies’ could invest in nuclear power in Britain? Gordon Brown.
Who sold off our nuclear installations to the French? Gordon Brown.
Who sold off our hospitals buildings only to rent them back? Gordon Brown.
Who sold off hospital car parks? Gordon Brown.
Who has been asset stripping? Gordon Brown.
Who went with cap in hand to ask the banks to start lending again? Gordon Brown.
Who has been sabre rattling, threatening to nationalise the banks if they don’t start lending? Gordon Brown.
Who, after the banks, in open defiance, refuse to pass on interest rates and to start lending again, has taken no steps to force the banks to do so? Gordon Brown.
Who has been given an ultimatum that if he fails to bail out the banks within twelve months, the banks will no longer defer the repossession of homes? Gordon Brown.
Who has given the banks an undertaking to have the banks recapitalised, and with sufficient liquidity, within twelve months, at the expense of homeowners and the taxpayer? Gordon Brown.
Who has given an undertaking to the banks, for the Bank of England to buy toxic assets in exchange for bonds at the expense of the Taxpayer? Gordon Brown.
Who has taken no steps to claw back the ill-gotten gains of the unscrupulous bankers? Gordon Brown.
Who refuses to have a judicial review into the credit crunch in Britain, as it might reveal that the Chancellor at the helm was the cause? Gordon Brown.
Who is running around the world in a desperate attempt to prevent protectionism? Gordon Brown.
Who after all these failures thinks he is well placed to be the Chancellor of, not just Britain, or even Europe, but of the whole world? Gordon Brown.
Gordon Brown says: This is no time for a Novice. Well, there is one sure thing – The unscrupulous bankers were certainly no Novices.
WHY LABOUR IS THE CAN DO NOTHING PARTY?
12.01.09, 11:17am
Because Labour has been asset striping. The credit crunch exposed the driving force behind Gordon Brown’s booming economy, ie the property market.
BASIS OF THE BRITISH ECONOMY
Britain has always been a homeowner-based economy - not like the economies of France and Germany, where the majority of people live in rented accommodation. Homeownership made Britain one of the wealthiest and stable economies in the world.
Scarcity of building land, difficulty in getting planning permission and the time it takes to build substantial property using bricks and mortar and with every increasing costs, it all adds up to a very valuable asset that increases in value. Because of this, the majority of people want to get on the property ladder. These assets are the foundation of the British economy and credit ratings upon which stability depends.
In 1992: When Britain joined the European Exchange Rate Mechanism (ERM), it fixed the level of the pound within a band which put the economy under great strain. The UK's prime minister and chancellor Norman Lamont tried desperately to prop up a failing pound. The Chancellor raised interest rates from 10% to 12%, then to 15%, and authorised the spending of billions of pounds to buy up the sterling being frantically sold on the currency markets. But the measures failed to prevent the pound falling lower than its minimum level in the ERM. But because Britain has always been a homeowner-based economy, the only thing that could give under the strain was property. That is why homeowners suffered negative equity and repossessions. Britain had to come out of the ERM but it cost the country 48 Billion pounds.
CHANGE OF THE SYSTEM, Deregulation.
Up until 1997 the Bank of England controlled the financial system. It was common knowledge that mortgages were protected from such abuse, under existing safeguards of regulations and the law, and that mortgages, in particular, were sacrosanct.
Mortgages were only to be used for the purchase of property; loans for all other purchases had to be through a bank loan or hire purchase, which were short term and had a higher rate of interest. Lending banks and building societies were strictly regulated in order to protect homeowners’ and the security of their asset and the valuation upon which mortgage deeds depend. Lending for consumer spending on domestic and luxury goods were kept separate.
However, in 1997, Gordon Brown when Chancellor, decided that he didn’t like that anymore. So he introduced a system were we had, the Financial Services Authority, the Treasury, and the Bank of England, (the Tripartite Authorities) carving up the job amongst them. Just one big problem – when there was a crisis, ‘apparently’ nobody knew who was in charge. The effect of all this – the system unregulated.
The bankers most certainly knew the enormous value of your mortgage, backed by the secure asset of your home, and that mortgage-securities would be the driving force behind a powerful booming economy. They knew they would make a fortune if they could trade them on the US financial markets in the same way as US Government-Sponsored-Enterprises (GSEs). However, bankers knew mortgages couldn’t be traded unless they were taken out of their protective regulation. So how did they get their hands on them?
Well, first, you must know what you are doing, and know how to have them deregulated. By changing the banking system in 1997, banks were able to raise collateral by repackaging mortgages and sell them on in the form of Collateral Loan Obligations (CLOs) and other similar stealth products. These were traded through institutions, but an institution is not called a bank, and therefore operated outside strict bank regulations. This was the key to the unscrupulous bankers making a fortune.
The questions one should keep in mind is, was it Gordon Brown's idea, or the Bankers' idea, or both? Who persuaded who?
The property assets backing CLOs were so valuable, that other loan sharks wanted to get in on the act - adverts started to appeared on national television encouraging homeowners’ to free up equity from their home and to - Spend! Spend! Spend! The banks’ were promoting credit cards – shopping on the high street was a wash with cash.
However, whilst you homeowners’ were sleeping in your beds, unscrupulous bankers were undermining the financial foundations of your property asset, by taking your mortgage out from under strict banking regulation, re packet aging them in the form of Collateral Loan Obligations (CLOs) and similar products, selling them on and gambling with them in volatile markets on US Wall Street, and lost them, resulting in the credit crunch and falling house prices.
WHY DO THE BANKS REFUSE TO LEND?
When Gordon Brown goes to the banks to ask them to lend, the banks want to know: What assets does he have to offer as security for the loan? How does he propose to raise sufficient money to pay back the loan plus interest? Who is to go guarantor and the duration of the loan? What debts dose he already have?
The Banks look at Gordon Brown’s economy bank account and say to him: But Mr Brown you have no assets and you have maxed out all your credit, your credit rating is zero. We told you that if you did not replenish your account by putting liquidity back into you’re your economy account we would, within twelve months, have no alternative but to commence repossessions of homeowners property.
We are sorry that you will be left with a horrendous problem of having to re house these people, that you are in a can do nothing position and that you have to resolve these problems before you can call an election - But Mr Brown, that’s how business works. For example lets look at your record:
Who has presided over record levels of Government borrowing? Gordon Brown.
Who has racked up the biggest budget deficit in the western world? Gordon Brown.
Who bears responsibility for the destruction of Britain's pension schemes and funds through the £5 billion a year tax that he introduced in his first budget? Gordon Brown.
Who is the financial genius who sold off 60 per cent of Britain's gold reserves between 1999 and 2002, at prices which are half today's levels? Gordon Brown.
Who convinced many people of a better future with low inflation and that Britain’s infrastructure would, not only be the best in Europe, but, wait for it, ‘The best in the World’ – and that Britain would be better placed to withstand global financial turbulence than any other country, if they deprive themselves from a rise in wages? Gordon Brown.
Who in desperation to raise revenue scraped a 10p Tax from the bottom of the barrel? Gordon Brown.
Who over the last ten years had been using stealth Taxes to raise revenue? Gordon Brown.
Who, by whatever stealth it takes, is intending to use green taxes, not for the purpose of global warming - but in desperation to finance Britain’s out of control borrowing deficit? Gordon Brown.
Who in 1997 changed Britain’s financial system, the effect of which, the system unregulated and ‘apparently’ with on one in control, the result of which, the Chancellor of the day, in effect, handed over his possession, power and control of Britain’s economy to unscrupulous foreign bankers over which he had no jurisdiction or authority? Gordon Brown.
Who is responsible for a decade of regulatory failure in respect of banks and the financial services industry generally? Gordon Brown.
Who after handing over his possession, power and control of Britain’s economy to unscrupulous foreign bankers, brought back his spin doctor Peter Mandelson to make, speeches which are vague, nebulous, guff, delivered with so-called authority in an attempt to blame his failures on the global down-turn outside his control? Gordon Brown.
Who run in desperation with cap in hand to ask King Abdullah to give Britain more oil, and in return the Saudies’ could invest in nuclear power in Britain? Gordon Brown.
Who sold off our nuclear installations to the French? Gordon Brown.
Who sold off our hospitals buildings only to rent them back? Gordon Brown.
Who sold off hospital car parks? Gordon Brown.
Who has been asset stripping? Gordon Brown.
Who went with cap in hand to ask the banks to start lending again? Gordon Brown.
Who has been sabre rattling, threatening to nationalise the banks if they don’t start lending? Gordon Brown.
Who, after the banks, in open defiance, refuse to pass on interest rates and to start lending again, has taken no steps to force the banks to do so? Gordon Brown.
Who has been given an ultimatum that if he fails to bail out the banks within twelve months, the banks will no longer defer the repossession of homes? Gordon Brown.
Who has given the banks an undertaking to have the banks recapitalised, and with sufficient liquidity, within twelve months, at the expense of homeowners and the taxpayer? Gordon Brown.
Who has given an undertaking to the banks, for the Bank of England to buy toxic assets in exchange for bonds at the expense of the Taxpayer? Gordon Brown.
Who has taken no steps to claw back the ill-gotten gains of the unscrupulous bankers? Gordon Brown.
Who refuses to have a judicial review into the credit crunch in Britain, as it might reveal that the Chancellor at the helm was the cause? Gordon Brown.
Who is running around the world in a desperate attempt to prevent protectionism? Gordon Brown.
Who after all these failures thinks he is well placed to be the Chancellor of, not just Britain, or even Europe, but of the whole world? Gordon Brown.
Gordon Brown says: This is no time for a Novice. Well, there is one sure thing – The unscrupulous bankers were certainly no Novices.
0
Comments
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Thanks. Good read.0
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Great article - hits the nail squarely on the head.
What is the source?0 -
Yet you'll still find a fair chunk of the population (18% here: http://forums.moneysavingexpert.com/showthread.html?t=1370265) who will vote for him again...0
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well however bad Labour are, they seem to be still ahead of the Conservatives in the polls, even with the shambles Labour has created. it's a reflection of how bad the tories actually are and their lack of policies.
i'm not a Mr G. Brown fan by the way0 -
Was rather hoping you guys would vote for me in the next general. The Pobby Party..... has a certain ring to it!0
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Britain has always been a homeowner-based economy - not like the economies of France and Germany, where the majority of people live in rented accommodation. Homeownership made Britain one of the wealthiest and stable economies in the world.
Scarcity of building land, difficulty in getting planning permission and the time it takes to build substantial property using bricks and mortar and with every increasing costs, it all adds up to a very valuable asset that increases in value. Because of this, the majority of people want to get on the property ladder. These assets are the foundation of the British economy and credit ratings upon which stability depends.
Reading the first 2 paragrapghs I decided not to read further. As there are glaring inaccuracies in the statements. Owning a property in itself does not create wealth, and Britain has not always been a home owner society.0 -
It's such a mess right now why would the tories want to take this poisoned challice?
Ah - silly me - thay are politicians so all they really want is to get their stupid faces on the TV just like all the others.0 -
Great article - hits the nail squarely on the head.
What is the source?
Link to source
http://www.express.co.uk/posts/view/79563/And-the-latest-word-on-the-credit-crunch-is0 -
0
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well however bad Labour are, they seem to be still ahead of the Conservatives in the polls, even with the shambles Labour has created. it's a reflection of how bad the tories actually are and their lack of policies.
i'm not a Mr G. Brown fan by the way
Perhaps you would like to point to a recent opinion poll that put Labour ahead of the Conservatives."You were only supposed to blow the bl**dy doors off!!"0
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