Why Labour has failed

A colleague (Thanks BC) posted this on an internal news group ...

"No action following IMF warnings in 2002 saying UK credit is getting out of control.

No action following BBC Panoroma programme in 2004 saying that sub-prime mortgage loans were being awarded against dishonest income statements.

Removal of the BoE's teeth to intervene in banks with poor operating controls.

Restructuring the inflation calculations to keep IRs low.

Establishing the FSA without an understanding of how it would operate in a crisis, or even what its responsibilities are.

Appointing interest rate doves into the MPC to continually vote for cheaper credit.

Not reacting to understand newly created investment vehicles and their risks.

Not reacting to understand the carry trade risks.

Dithering over Northen Rock allowing a bank run to collapse the bank.

Holding talks with Lloyds to take over HBOS then allowing this news to leak
thereby destoying HBOS in the market and making a takeover a forgone conclusion.

Causing a silent run on banks by meeting with the heads of the high street
banks with no plan and taking another 48 hours to come up with a bail out
plan whilst work markets implode.

Allowing unregulated 115% mortgages.

Destroying pensions so that people turned to housing for investment.

Removing MIRAS so that private BTL could outcompete owner occupiers for housing stock.

Giving TAX incentivies to private BTL landlords.

Bottom line is this entire crisis is caused by out of control house prices.
Gordon's economy over the past 10 years is based on over priced housing."


Nice summation I think ......