Sunday, 2 November 2008

Dig Upwards!

The above is a bit of an in-joke between me and my university friends. When one of said something stupid and tried to talk our way out of it, the rest of the group would call out "dig upward" to stop him.

It comes from the old saying "when in a hole stop digging" and is one of the most pragmatic things you can do.

This is why I am so bemused by the government's response to the credit crisis. As far as I can tell they think the answer is:

Encourage banks to lend at 2007 levels
Borrow excessive amounts of money to increase government spending

Why is the solution to the problem of banks lending too much and government spending and borrowing too much the same the actions.

Following this Vince Cable has been having a go at Barclays because they want to "protect their commercial independence", I am a Barclays share holder. I am proud that my bank has resisted the government's shilling.

I am annoyed that people believe the solution for Barclays is government money, yet in the same article the BBC admit that profits are better than last year, if this is not proof that the bank is fundamentally sound I do not know what is.

The banks should not be owned by the government. The banks control and fund the economy having them under state control means the government controls free enterprise and we all suffer. Politicians focus on the next election and ignore the long term good for the economy.

If Gordon Brown was truly working in our interest, he would hav slashed spending in 2002 instead of borrowing. He did not he borrowed and six years later we are suffering the consquences.

Dig Upwards Gordon. Dig Upwards.

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