Gordonomics: Insolvency in Gordon's "Cool Britannia"

Recent figures from the Insolvency Service show that more than 19,000 people in England and Wales were declared bankrupt in the last three months of 2008 - up 22 per cent on the previous year.

4,607 companies went into liquidation last year, a rise of 52 per cent, and companies in administration more than trebled in the same quarter, up to 2,018 from 575 a year ago.

The Insolvency Service figures reveal the true extent of Britain's economic crisis.

Vince Cable, Lib Dem Treasury spokesman, said yesterday:

"This shows that the banking crisis has spilled over into the real economy.

"It is critical that the Government now concentrates on creating new jobs and sorting out the banks."

Part of the problem is that Gordon has been putting people to work, but in state non jobs that have to be paid for from taxation rather than private sector jobs that create wealth.

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 aim 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.

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