The one eyed Scottish idiot, our snot gobbling and alledged trouser wetter has posted some fine old excuses on how he fucked the UK economy:
First up he explains the sub-prime market. Also note the fact he use the USA as his whipping boy, avoiding the point that we did exactly the same here in the UK.
The spread of sub-prime: despite record house-building, more people wanted homes than were for sale and they were prepared to borrow more to get their homes. In America people were encouraged to buy homes with cheap credit and low starter interest rates, but salespeople made no proper assessment of what level of lending they could afford to repay.
As US house prices fell and the US economy slowed the number of people defaulting on their mortgage started to rise, and once other lenders realised that was happening, the system started to panic, as everyone was trying to work out how many other risky assets the other banks held. That's what first started to spread fear through the system early last year.
Gosh really Gordon, well I am just so fucking impressed. Damn those nasty yankees, its not like our banks were run by inept fuckers lending squillions to people with no chance of ever paying it back?!
After all it was your reckless abolition of our efficient system of bank regulation, it was you who called responsible banks abroad "conservative" and it way you my one eyed idiot who pushed cheap debt onto people.
People who had never had debt before, though they could afford all the feel good things because you claimed again and again that the good times were here to stay. No more boom an bust you claimed.
Well Gordon you sure fucked that up, you abolished the laws of economics and now we all have to pay the price.
Sadly yet again our PM gets it wrong with regards subprime lending, a more accurate description of subprime lending would be:
lending to people who do not meet general lending guidelines. That is people who have a real or precieved risk of default, people who have previously defaulted, who have a record of bankruptcy, or those with limited debt experience.
Strange that he makes no mention of his encouraging the expansion of the credit markets here in the UK whilst working at No.11 Downing Street. After all HM Govt saw that lending as a cheap boost to the economy and the interest off all that credit went into government coffers.
Also Gordon plays the US market, passing the blame. Not a peep on UK banks that overextended themselves to people with 2p in the bank an no regular job.
Next up he blames the banks.
Banks became global borrowers: many banks started packaging lots of mortgages up into bundles and selling them mainly to other banks - what the experts call securitised credit. That can work as long as there is money available to borrow, but when that dries up they've got nothing to pass on to people.- In a word when the housing market crashes.
Because of a lack of due diligence at the start and because mortgages had been packaged up and sold right across the world there was real confusion about what these bundles were worth. People had no idea how many mortgages would default, and a very active market for these assets dried up, leaving banks like Northern Rock in real trouble.
That's what led to the liquidity crisis - the drying up of ready cash for the families and businesses who needed it.
It was made all the more difficult to fix because sometimes these investments had been made and bought by individual bankers without them telling their boards, their auditors or the FSA - so nobody who should have had a clear picture of what was going on really did.
Ah the FSA, I am go glad that he mentioned them. I have said it before that the FSA could not regulate a bowel movement in a toilet. This is not rocket science, the UK was warned by Europeans, economists, the IMF, debt companies, businesses etc that the level of our national debt and our personal debt was soaring. Many times over many many years.
Gordon chose to ignore that basic economic fact.
Next up he describes the result of his actions:
The system seized up: the money in your bank isn't just the money which people like you have put into it. Behind the scenes is a series of relationships between banks who all lend to one another, and the whole system works on trust - the confidence that if one bank lends money to another one week, they will be able to borrow in turn if they have particular drains on their reserves the next.Note that he mentions Lehmans, avoiding all mention of UK banks.
When a big name like Lehmans failed everyone was sort of frozen by fear. For most banks the safest option was to hoard their cash and not lend it to other banks or even their customers, and that has a knock-on effect on the relationship between your bank and you. If your bank isn't sure it can borrow to and lend from other banks, it's not going to be sure it can lend to you.
Gordon's problem is he thinks that the way to resolve the rapidly deepening economic crisis is via 'stimulus packages' with magic money plucked off the magic printing press.
With the ultimate of getting the banks to lend again and rebuild the very credit bubble and circumstances that landed us in the shit in the first place.
Like holding an alcoholics meeting in the local pub, you get full attendance but they all end up dead.
Next week Gordon holds an emergency meeting on how some big boys threatened him and it was all their fault...
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3 people have spoken:
Bravo. Top fisking. A pleasure to make your acquaintance.
Why wont the one eyed cunt allow us to comment on his governmental webshite. There's an awful lot that I'd love to discuss with him about his last Twelve Years in power.
Cheers North, always a pleasure when folk drop on by with a comment.
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