Fear grips global stock markets..Now what Gordon?

You have to hand it to Gordon Brown, everything he touches or does really does turn into a disaster. Wednesday we saw an announcement between him and Alastair Darling of the global actions that have been taken by Britain for global economic conditions now prevailing around the world. Then what happens regardless of the theft that Gordon instigated on behalf of the banks, the stock markets collapse anyway.

One wonders how low the markets can go, indeed companies will and can go bankrupt through this collapse and whatever happens we will all survive, this is not a war, this is just millionaires losing fortunes in one foul swoop, its quite hilarious to watch all the madness unfolding, this is what greed does to people.

Not to let Gordon off the hook today either, hows this for a classic quote from Gordon "Everybody depends on banks. We're trying to get the banks to do what they've traditionally done, to get the flow of money to businesses, to help people with their mortgages, to make sure people's savings are safe,"...What a corker! How exactly do the banks help people with their mortgages apart from extracting as much money as possible from them. You should ask the British savers in the Icelandic banks how safe their money is today as well, it's just a thought Gordon.

To read article click on orange link.

US banking bail-out gives green light for British bail-out

After the developments in America that the financial institutions should be bailed out to the tune of seven hundred billion dollars by the American tax payer

http://news.sky.com/skynews/Home/World-News/US-Bail-Out-Backed-By-President-Bush-As-First-Step-To-Economic-Recovery/Article/200810115113211?lpos=World_News_First_Buisness_Article_Teaser_Region_1&lid=ARTICLE_15113211_US_Bail-Out_Backed_By_President_Bush_As_First_Step_To_Economic_Recovery.

It now seems our our own little Darling is thinking of using the same American bail-out model as an excuse for British taxpayers doing the same over here. Who Say's that white collar financial crime does not pay eh?

In my opinion, an opinion why this bail-out is bad news economically for the future of this country is explained here. If the bailout had not gone ahead it is highly unlikely that Alistair Darling would be strutting around like a peacock now thinking that he could do whatever he wants with British tax payers money. In the long term housing property values will not come down to a realisable level to which first time buyers can afford. If property values are kept artificially high, what makes the banks and mortgage companies the most money, a mortgage at fifty thousand pounds, or a mortgage at one hundred thousand pounds?. Boom and bust is going to be the order of the day I'm afraid and oh how Gordon Brown must be cursing the bad timing of this one for him.

If the American bail-out had not gone ahead there probably would have been a collapse the likes of which we have never seen before. There still may be a collapse as this American bail-out may not even work, time will only tell. Inflation and the cost of living would have gone up in the short term, but financially in the longer term things would have been a lot better. Short term unemployment will have gone up but again would have settled when the economy corrected and balanced itself out. One thing for sure in my opinion is this, what will they do when the next cycle of boom and bust comes. The capitalist model requires bigger profits but will it come at a bigger cost and who will pay the cost when it inevitably fails next time?

To read Alastair Darlings bail-out ideas, click on orange headline.