Posted by: John | November 14, 2007

The wheels are beginning to fall off the Brown Govt?

Nothing has gobsmacked me as much as the news on Northern Rock and Gordon Brown’s answers to Vince Cable.

I’m still reeling from the news or rather what it says about Government’s views on the taxpayer.

It seems to me that he is virtually saying that the rights of Northern Rock directors and shareholders are of higher weight than actual taxpayers.

The answer is simple – will the new owners repay the interest? If not what’s Alistair Darling (guffaw!) or Gordon Brown going to do about it? If the lending figure was as enormous as  £24bn why was it not brought to the attention of the British public? Why SHOULDN’T the general public know if the £2bn is to be repaid.

This could be an IRAQ moment – this confirms to me what i’ve suspected all along – the `strength` of the British economy is based on froth and overstated property prices due to lax rules on lending and a virtual halt in property building. This has fed on itself to such an extent that the fantasy became a `given` and we are in for a correction.

How many more financial institutions are in a similar predicament?

Or is that all `Commercial in Confidence`?

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