I was intrigued by the headlines in an FT email this morning which read like this:
The range of sentiments is fascinating.
Osborne is trying to spin the sale of Lloyds as a success story; the end of a crisis, a return to normality. But that's clearly not true. The LibDems are all too obviously suffering deep divisions over the direction of the government's economic policy, and rightly so, whilst Barclays continue to evidence the disorder in the banking system and the fact that much has yet to be reformed, of which there can be no better evidence than the continuing crisis at the Coop Bank, where the ongoing issues arise directly from the pre 2008 lending environment.
And that's before we consider what is happening in the wider economy.
If in the midst of all this Osborne thinks a small share sale to raise a modest sum represents a major change in well-being he is seriously mistaken. What it actually indicates is the poverty of thinking within Labour when these banks were first nationalised, which should have been bold and which should have used them as the basis for reorganising the whole sector. Second, it clearly indicates that the policy is a return to the old pre-2008 status quo and that nothing has been learned. But most of all it says that rather than make structural reform the blood letting of austerity will continue.
And that's most worrying of all, because that is the last thing this economy can afford.
If only we had a Green New Deal.
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I thought the reason Osborne decided to sell a small percentage in Lloyds was because of the Lib dems Autumn party. Personally I think we should keep the shares and for a Sovereign fund like Singapore has.
Something that helps ordinary people rather than just bankers and CEOs of corporations? Are you mad??? 🙂
How depressingly true. I wonder how much worse it’ll get when the state subsidised housing boom collapses?
The 4 main political parties summarised:
Labour – cowards
LibDems – traitors
Conservatives – the nasty, stupid party
UKIP – the Conservatives, but worse.
Part time, zero hours McJobs and a government created housing bubble do not an economic recovery make.
£375 billion has been created out of nothing to buy back their own government bonds to supposedly stimulate commercial lending. Instead of just government debt, why not buy, as you suggested, PFI debt? But why stop there? Why not buy mortgage debt leaving people free of a massive portion of their debt that could be freed up to spend in the economy? The same as student debt ans municipal debt? This would give people a massive windfall to go out and spend and help create jobs.
Of course, a brave government would introduce capital and exchange controls in order to build up and protect our manufacturing base, but don’t expect that to happen anytime soon!
….. blood letter or become a staunch supporter of West Ham Football Club evidenced by his apparent mastery of the club’s anthem;-)
The bubbles that are being blown though will be far from pretty when they burst!
Sorry that should of course be West Ham United Football Club