October 4th, 2011

Osborne’s Corporatism Isn’t Fiscal Conservativism

There is often more truth in satire than news reporting and yesterday gave us an amusing example. The Chancellor’s vague plan for the Treasury to buy small firm’s corporate bonds was reported on by the Daily Mash thus:

Osborne’s offer of credit to thousands of small businesses will make Britain the first conservative-led communist state when the loans are inevitably defaulted and the government ends up owning and running everything.

The Chancellor seems to think the solution to the credit crisis is more debt, even though many businesses are doing the opposite and de-leveraging. Banks make money from lending and they lose money lending to bad credit risks. The government thinks the banks are being too cautious even though the markets think there is serious trouble ahead. Guido thinks the markets have it right.

When challenged to introduce growth-stimulating tax cuts the Chancellor refrains saying that he won’t because he is a “fiscal conservative”. George Osborne presumably would concede that Nigel Lawson was also a fiscal conservative, yet he managed to cut the top marginal tax rate from 60% to 40%. There is nothing fiscally conservative about maintaining a tax rate so perversely high it generates lower revenues by driving high earners out. This isn’t fiscal conservativism, it is political defeatism.

It is even less likely that fiscally conservative Nigel Lawson would countenance Osborne’s proposed socialisation of the corporate credit markets. When the government starts lending money to companies that no one else wants to lend to, you can be sure of one thing, they are going to lose a lot of taxpayers’ money. Billions.


110 Comments

  1. 1
    Dudley Zoo says:

    Like

    • 7
      Anonymous says:

      Osborne is right in doing it, but it depends on how he implement it. There should be proper security for the money that are give as loans, otherwise the country will not get the money back. It could be lend through Northern Rock in a responsible way and can be done in days, if Bank of England land the money to NR and NR lead it out.

      Like

      • 28
        Grumpy Old Man says:

        Lend taxpayers money through a basket case of a failed institution ? In any sensible country, NR would be a bad memory by now.

        Like

        • 35
          Anonymous says:

          Its not tax payer money as Ms Green (Treasury Minister) said it will not be in the books, it will be between BOE and NR.

          Like

          • Grumpy Old Man says:

            Where. ultimately, does the BoE obtain it’s funding?

            Like

          • Turnip says:

            Shut the fuck up fattie and go eat all the pies and cry to yourself and use the tears as lube for your boyfriend for that romantic touch. Fatguts.

            Like

          • The Paragnostic says:

            Of course it’s taxpayers money.

            Maybe not today’s taxpayers, but certainly tomorrows – the only guarantee of sovereign dëbt is future tax income, as it has been for over 200 years.

            Moron.

            Like

          • Anonymous says:

            BOE gets it money from printing it or creating it electronically. It can create as much as it wasn’t only issue is inflation.

            Like

          • THE PARTIES OVER. Well done to the Whitehall economic terrorists who employed the money for WAR on Drugs and the USA Wars around the world. Well done. FRAUD AND CORRUPT institutions Greedy self serving individuals corrupted by the STATE. Build Windmills. Quasi Privatisation, having to be Supported by the TAX PAYER.

            Like

        • 77
          Don't remember my moniker says:

          At this point in time, I’m not sure if NR has a worse track record with money than the govt or not. Although, I agree with. Lending through NR is just a bad idea.

          Like

          • David Laws Lib Dem fiddler says:

            Is credit easing an announcement that Operation merlin has failed and that bans have not kept their bargain to lend to small businesses?

            I though t the deal was to let them keep obscene bonuses and in return they would increase lending to SMEs. If this is not the case are bonuses to stop or to be heavily taxed??

            Like

      • 70
        Audemus Dicere says:

        “lend through Northern Rock in a responsible way ”

        Anyone see the slight flaw in this plan? Indeed, did anyone expect ever to see the words “Northern Rock” and “responsible” in the same sentence?

        Maybe Anon is good at irony?

        Like

      • 76
        Rodski says:

        When are you knobs gonna accept, these A holes have no choice. The decision, regardless of what shite party politics, has already been made!!!! Aaaahhh we are a part of the EUSR, the last socialist shite made sure of it. “Call me Dave” cannot do fuck all. You sad fucks welcome to socialism…

        Like

      • 103
        Ed the Axeman says:

        He’s not right in doing it.

        Loans aren’t the issue. It’s risk and reward.

        If you start a business risking 100,000 pounds what can happen?

        You could lose the lot. Government doesn’t share your pain.

        You could win, in which case Government takes 50%. That’s the real something for nothing society.

        So lets say it is 50-50% that the investment works and you get a 100K profit. Is it sensible to invest?

        Scenario 1 is a 100K loss, 50% of the time.
        Scenario 2 is a 100K * 50% = 50K gain 50% of the time.

        Average result, expected 50K loss is you play the game enough time, each time you play.

        You need a 200K return on a 100K investment just to break even, if it works There aren’t many business with that good a return.

        So they need to change the risk reward ratio.

        The major ways are reducing the costs. That way you need to invest less to get the same return. The second way is to allow people who take this risks to keep more.

        Like

  2. 2
    Billy Bowden is the greatest umpire ever ! says:

    So we are doomed then? Just a bit slower than if Labour were in power?

    Like

    • 12
      The Stilton Eater says:

      Osborne is slowly becoming a copy of Gordon Brown. See his speech with the list of boastful claims. Or look at his tendency to claim credit for good news whilst blaming unfortunate events on Labour or foreigners.

      Now he is ready to hose our money all over the banks with an unproven idea. It’ll all end in tears.

      Like

      • 31
        Banker says:

        Yes, I can barely tell whether it’s Gordon or Dave sucking my cock.

        ‘I care not which photographed-with-little-boys, ‘democratic’, ‘national’ politician gets elected by dumbed-down, brainwashed plebs as long as he fellates my schmekel’

        Mayer Amschel Bauer 1773-2011.

        Like

    • 13
      Anonymous says:

      George Osborne has warned that the Bank of England’s strategy of quantitative easing is a “leap in the dark”.

      The Shadow Chancellor described the decision to effectively print more money as a “last resort”, necessary because of the “complete failure” of Labour’s other measures to tackle the recession.

      http://www.conservatives.com/News/News_stories/2009/03/Quantitative_easing_is_a_leap_in_the_dark.aspx

      Like

      • 16
        Anonymous says:

        effectively print more money as a “last resort”, necessary because of the “complete failure” of Osborne’s other measures to tackle the recession.

        Like

        • 20
          Billy Bowden is the greatest umpire ever ! says:

          We are not in a ressescion .

          Like

          • Anonymous says:

            Do you mean Osborne wants to print money even before the recession?

            Like

          • Billy Bowden is the greatest umpire ever ! says:

            you are the one that claimed we are in a ressescion, or didnt you read what you copied and pasted?

            Like

          • Anonymous says:

            For most people we went into recession few months ago. 0% growth and 0.2% growth might not be technically not a recession but for most people living in this country they are living in recession.

            You were the one who was praising Osborne’s policy, I was only pointed out what Osborne said about QE, which means according to Osborne his policies have failed.

            Like

          • Billy Bowden is the greatest umpire ever ! says:

            So because the facts dont fit your story somehow you have to make it fit.

            And because the stats dont make case i would have thought you would have at least concedeed that, But alas, you and reality seem so far apart.

            Like

          • Anonymous says:

            I think everyone except you could understand. Billy I cannot wake a person pretending to sleep. Its a waste of both our time if you cannot really understand the point I was making.

            Like

          • Billy Bowden is the greatest umpire ever ! says:

            But when your point is based on a untruth it sort makes the whole a waste of time.

            Like

  3. 3
    Billy Bowden is the greatest umpire ever ! says:

    Can anyone tell me the last time the state backed a winner?

    Like

  4. 4
    Gooey Blob says:

    Max Keiser reckons he has inside information that the Germans are readying the printing presses to print Deutschmarks. Interesting times lie ahead…

    Like

    • 18

      Weimar Reichsmarks would be as useful, if Germany pull out of the Euro the whole edifice will collapse and take them, us and everyone with it.
      Baked beans and ammunition anybody?

      Like

    • 61
      The Paragnostic says:

      Max Keiser?

      So the Kremlin still has someone on the inside track in Germany? I thought they’d got rid of all the Stasi secretaries that the East used to suborn?

      Hang on, Merkel’s an Ossi, isn’t she?

      Like

  5. 5
    James says:

    Guido,

    The banks are insolvent

    http://www.ritholtz.com/blog/2011/10/bankings-self-inflicted-wounds/

    they’re just pretending not to be by fiddling their balance sheets.

    We’re heading for a depression.

    Like

    • 19
      smoggie says:

      With that kind of foresight you should be a millionaire

      Like

      • 24
        James says:

        perhaps you haven’t looked at the equity and credit markets recently?

        Like

        • 34
          smoggie says:

          Every day pal but if you can predict the movement of the Footsie by Friday then maybe you might gain some credibility. C’mon spill.

          If you really did know we were heading for a depression then you would be silently betting on it not showing off on some blog as if you know something that has somehow eluded us punters who live in the real world.

          PS If you also know who will win the next Derby please share the info. In advance.

          Like

          • James says:

            well if you look at it everyday pal you’ll know there’s a vast difference between predicting short term equity moves in a very volatile market and predicting that the economy is in deep trouble.

            For what it is worth I bought index put options before the 2008/2009 crash and made a nice bit of money on it.

            The public and private sectors have record debts as % of GDP in the US and UK, the Euro is imploding and the banks are still insolvent.

            not hard to understand is it? Got anything intelligent to say? Perhaps you are one those people who claimed “no one could have seen it coming” like Brown and Balls. Are you a member of the Labour party?

            Like

          • smoggie says:

            No I’m Billy’s boyfriend.

            Like

          • James says:

            perhaps this graph Guido kindly posted previously will help you:

            http://orderorder.files.wordpress.com/2010/02/debt-gdp.jpg?w=480&h=386

            as you can see there is a massive amount overhang of private+public debt and since a lot of it went into asset bubbles and consumption we don’t have much to show for it.

            We’re now in for a prolonged period of debt deflation.

            Like

          • Engineer says:

            “…predicting that the economy is in deep trouble.”

            We don’t need that predicting. We know it’s in trouble. We’re overburdened with sovereign debt and personal debt, we’re running an unsustainable deficit, interest rates are on the floor, the US economy looks to be heading for recession and the Eurozone is in serious crisis. Things are clearly going to get worse before they get better; how much worse is open to debate, I’ll concede.

            The question is, what does the government do to manage the crisis, and what do individuals do to protect themselves and their families?

            Like

          • Turnip says:

            Nell’s Delightful Authentic Turnip Turnover (serves 1 ready in 25 minutes)

            Take one Turnip
            Boil me in Water for 20 minutes.
            Spit upon the drained chunks of my flesh.
            Try and griff up a greenie to add better flavour.
            Sprinkle liberally with cat hair and skin mites.

            Enjoy!

            Like

          • James says:

            Engineer,

            Yup I completely agree although many still appear to be in denial about how serious the situation is.

            I don’t know what the solution is but clearly major banking reform is part of it. We need to make sure all bad debt it put out into the open and written down. People who have too much debt they can’t pay back need to default and start again.

            We currently have regular house price bubbles – doing something to stop that would be helpful. We need to have banks lending to productive and innovative businesses that will increase GDP such that we are able to grow out of the debt. We need to reduce our trade deficit and rebalance our economy away from financial services.

            I suspect all of this would be quite painful in the short term and a lot of special interest groups will be vigorously lobbying against it.

            However, if we do not deal with this properly we will end up in a socialistic nightmare

            Like

          • misterned says:

            The economy has been structurally in deep trouble since at least 2001, hidden by credit, the economy appeared sound, but since 2008 it has overtly been in the toilet.

            You call this prediction? I call it ancient history!

            Like

  6. 6
    Ratsniffer says:

    The reason that the conservatives won’t lower taxes is that their leftie friends the lib dims won’t let them. Remember, many of the lib dims defected from labour at a time when taxing the rich (and the middle classes) until “the pips squeaked” was highly fashionable.

    Like

    • 59
      Engineer says:

      Not sure that I agree with that. I think the reason that Osborne won’t lower taxes (at the moment) is because he can’t afford any more increases in the deficit, and there’s no guarantee that lower taxes will stimulate sufficient growth given that the rest of the developed world is either in crisis or experiencing very low growth.

      Osborne has nowhere to go. He’s been lobbed the worst of hospital passes by the last lot, and he’s just trying to steady the ship hoping things don’t get worse (which they will if the Euro collapses).

      Like

      • 83
        Sungei Patani says:

        As one who instinctively thinks that high taxes are a bad idea, I must agree that lowering taxes at the moment is not feasible. Lower taxes (with the possible exception of the 50% rate as it probably produces no income) will only result in widening the deficit so disastrously created by the last government.

        The whole financial mess, a large proportion of the world is in, is because of debt (made worse by the nonsense of the Euro) and everything must be done to reduce the debt level and the debilitating effect it will have on the prosperity of future generations.

        Like

      • 89
        misterned says:

        Sorry Engineer, but Osborne has somewhere to go, but the tories refuse. Even without the Lib-Dems they would not take advantage of the billions of billions and billions in cuts available from cutting overseas aid and getting out of the EU and scrapping the climate change policies.

        Like

        • 91
          These are not Tory policies. says:

          Applause. Loud applause.

          Like

        • 97
          travelling man says:

          +100.

          He could also raise the personal allowance by a couple of thousand or so to give folks some money to actually spend and thus bring a little relief to some struggling SMEs.

          Like

  7. 8
    Nina says:

    Osborne is way behind here. Even radio 4 has run documentaries on small businesses (last year) detailing how foreign banks are offering loans where British banks are refusing (and where the credit risk is minimal.)

    Like

  8. 9

    Gooey Blob, I first heard that rumour in March. Only the information I was passed from a friend in Belgium suggested the Marks were already secretly in print.

    Like

    • 27
      smoggie says:

      Makes more sense than “readying the printing presses” whatever the fuck that is supposed to mean. Things have changed a mite since Caxton’s day.

      Like

  9. 10
    Loud Chief Justin says:

    I dunno. I’d rather like to own our local knocking shop.

    Like

  10. 11
    Sir William Waad says:

    Now, I actually have some experience of bank lending to smaller businesses and I can tell Guido that, right now, there is a failure in bank lending because (a) banks have trashed their balance sheets (b) soft lending to governments soaks up all the cash and (c) banks have lost interest in lending to private business and have destroyed most of the expertise that they once had in that area, in favour of lending to trailer park denizens in Arizona or dreaming up the latest toxic financial derivative.

    Therefore there is a need for another lender. Some of the money will indeed be lost or stolen, but even then it will do more good than if it merely bolstered Megabank’s balance sheet. In practice, if they do it right, much of it will come back as tax and most of it will be repaid.

    I expect this will fizzle, in practice, and it will make nowhere near as much sense as cutting employer’s NI (the Jobs Tax), but it’s a positive step.

    Like

    • 23
      James says:

      exactly.

      rather than lending to productive enterprises over the last 10-20 their have preferred to lend 125% mortgages to people who can never pay it back on an asset that is hugely over priced.

      The having destroyed their own balance sheets they get their paid-for politicians to relax the accounting rules to hide the toxic crap on their books. This enabled them to “pay back” TARP in order carry on paying themselves huge bonuses on fictional profits.

      http://www.ritholtz.com/blog/2011/10/bankings-self-inflicted-wounds/

      While reforming tax and benefits is certainly a good idea, the real problem is cleaning up a thoroughly corrupt financial system and their client politicians.

      This is something people like Guido should be campaigning for if they want to save capitalism. However, I am not sure he understands it.

      Like

    • 107
      Johnny says says:

      “Therefore there is a need for another lender. ”

      No. Just for banks to return to the practices of the past. How you encourage this I’m not sure but if the State directs lending to small businesses the banks will never relearn how to do it properly and too much taxpayer money will be pissed away.

      Like

  11. 17
    Mr Speaker says:

    Oh, purr-lease Guido. Enough.

    Like

  12. 21
    okjoe57 says:

    I may just give up reading about politics and society, there really is no hope is there .. time to concentrate on the natural world and horseracing and other pleasurable things. Despite everything 30%+ would still vote Labour and the BBC is apparently ‘untouchable’. It’s literally hopeless.

    Like

    • 38
      Gooey Blob says:

      Obvious bias from Raving Robinson on 10 o’clock news last night. At least Newsnight showed the complete picture. BBC1’s standards really are low these days. 140 quid a year and they have the nerve to parade this array of tripe before us nightly? Not worth the money.

      Think I’ll stick to ITV News at Ten or Sky in future, they provide a much better service.

      Like

  13. 29

    It’s like watching a slow motion car crash…

    Like

    • 52
      Cell time says:

      It’s been going on for at least 14 years! The driver has been changed twice and still waiting for the major impact and then all those years whilst the dust settles before assessing the casualties

      Like

  14. 32
  15. 37

    We’re doomed I tell yer, doomed doomed doomed!

    Like

  16. 39
    Edinburgh dogshit and their skanky brats says:

    I bet the cat was from Pakistan. Check the flea collar for xplosives.

    Like

  17. 40
    Theresa May says:

    We are no longer the nasty party, we are now the pussy party.

    Like

  18. 42
  19. 46
    Getn followed about by pathetic, scrounging, meddling hoons in Edinburgh. Sick of it! says:

    Heading for a long depression.

    Like

    • 49
      Billy Bowden is the greatest umpire ever ! says:

      You havent just be given free lifetime membership of the labour party?

      Like

  20. 54
    Yeah, right.. says:

    Ideologically, I’m with you on this Guido. But then, if you think about it, the state is already telling us who we can employ, who we can and can’t fire, it interferes in areas which should be matters between willing employer and willing employee.

    Given that the state sees fit to interfere in how we run our business in so many ways, perhaps its only reasonable that it guarantees any losses.

    Of course, Osbournes alternative route to achieve the same goal would be to cut corporation tax, remove the easy tribunal processes, slash employers NI, abolish business rates and then sit back and watch business thrive and the economy flourish.

    Thats what a tory government would do.

    Like

    • 90
      misterned says:

      Willing employee? WTF is one of them? They believe that they are entitled to a pay packet for just turning up and the employer should be bloody grateful!!!

      Like

      • 105
        yeah, right.. says:

        Not true. Most people, in the right environment and treated properly, are diligent and want to do a good job.

        There are minority who are lazy, feckless, have attitude problems or who are just plain hard to get on with. Business should have the freedom to recognise the drain these people are on a company and fire them without having to jump through so many hoops.

        There needs to be an assumption that business wants to employ good people and only tends to sack those who arent. Simple really.

        Like

    • 92
      These are not Tory policies. says:

      More applause.

      Like

  21. 57
    Scruff says:

    Capitalism can neither flourish or work until weak companies and failed banks are allowed to go bust (Iceland allowed its banks to fail & go bankrupt). No company and no bank is to big to fail. Once a bank or company has failed it is dead. This is then replaced or taken over by a new bank or company. This is the basic law of the system. The continuing meddling by central governments and endless bailouts are destroying the central plank of the capitalist system and prolonging the recession. This is why the system is failing folks!

    Stop the bailouts!

    Like

  22. 60
    Helpful says:

    Anyone remember the National Enterprise Board?

    Funnily enough all the companies deserving of help will be in marginal constituencies.

    Wanker! Sounds like he has nicked Vince Cable’s speech!

    Like

  23. 62
    stun says:

    The mechanism chosen could make a big difference. Spain has been guaranteeing loans originated by the banks to qualifying SMEs (<€5m annual turnover, average loan size probably in the €100k region, and often backed by property assets) for a good ten years, at the rate of €1-1.5bn a year. Even with the crash in the Spanish economy, the level of claims made against the government guarantee have been relatively minor and the securitisations (the FTPYME programme) have generally performed well. The funds for the loans were thus sourced from the capital markets, only the guarantee (a contingent liability unless drawn) ever able to affect the country's balance sheet.

    Like

    • 65
      In Gold we trust. says:

      Naturally we’d better follow the excellent Spanish example.

      You’re having a laugh.

      Like

      • 69
        The Paragnostic says:

        Don’t forget that being Spain, the loans are likely to have been matched by EU grants (hardly likely to happen over here), so Diego can afford to spunk twice as much public cash before he goes to the wall.

        Like

    • 67
      stun says:

      Well, how do you think Spain created the years of massive growth in the private sector? Admittedly, too much went into the property market, but we’re talking about the mechanism, not what is done with the money.

      Like

    • 81
      Ruth Kelly's plaything says:

      British banks are notorious for their reluctance to lend to SMEs against anything but tangible assets; they aren’t bankers but pawnbrokers.

      For 30 years various British govts have run bank-loan guarantee schemes for SMEs, who pay a bit more interest as a premium to insure the loan. If the govt got the premium right, everybody won.

      Trouble is, those schemes are administered by the banks who are united in opposition to them, presumably on the principle that if you let in one sensible innovation there’s no telling where it will stop. Thus very few loans ever get made.

      Hence Osborne’s frustration at the challenge of getting loan finance to SMEs who, if they got it, could make a real dent in our present growth problems.

      Like

    • 106
      Jabba the Cat says:

      PIIGS ring any bells, in particular the one on the end?

      Like

  24. 63
    In Gold we trust. says:

    What wankers the Bullingdon Boys turned out to be.

    Osborne has invented UK sub prime loans, using our money, of course.

    Balls could not have come up with a more noxious scheme.

    Like

  25. 66
    The Paragnostic says:

    Expect cheap loans for wind farms and ludicrous solar energy projects – coming to a town near you very, very soon. It’s the only way the ‘green economy’ can work, because it sure as hell won’t pay for itself.

    Saw a pic of the planned photovoltaic roof for Blackfriars Bridge today – what a fucking joke. They’d get more (and more reliable) power by blocking one of the arches off and putting a tidal turbine in, but a roof of superfluous solar panels looks greener and more spectacular.

    Huhnes.

    Like

  26. 68
    Jimmy says:

    “yesterday gave us an amusing example.”

    Do you have a link?

    Like

    • 71
      Tachybaptus says:

      It’s in the very next line. But it may not be visible to those who have RealityBlock Plus enabled.

      Like

  27. 73
    Sir Alan Walters says:

    Nigel Lawson was economically illiterate.

    Like

  28. 74
    Nigella Lawson says:

    Isn’t my dad great? He got us into the ERM!

    Like

  29. 75
    Max says:

    Haven’t they “cleared this up” in the small print somewhere and these “loans” are only a diversion of BoE funds from buying Govt Bonds to buying Corporate Bonds?

    You have to be significantly large business-wise to be issuing Corporate Bonds so we are not talking the SME sector. And the normal risk-limiter is the grade and I cannot believe that Merv can be persuaded by anyone to seek out junk bonds.

    Bit of window dressing and a bit of re-directed QE I suggest, Guido. Might take up some of the slack and even free up a bit of high street bank money for the SME sector.

    Sort of ok all round then. Sorry it’s not as exciting as some of the comments so far. Er, back to work for me then…

    PS Would agree though the banks are generally well bust because so much of the underlying “asset” on their books is property ie real estate. And not just in mortgages either because much straightforward business lending is anyway secured on offices, shops, land and homes. Banks were never clever enough to secure a debt on say a patent, they much preferred the factory plus the MD’s executive Barratt home.

    Like

  30. 78
    Ruth Kelly's plaything says:

    Agree with you on the need for govt to keep out of the market, but PLEASE can we have an end to the self-serving nonsense about the 50p tax rate?

    Its opponents tell us that it reduces incentive: I see the logic and I love low taxes.

    But they also say that it raises next to nothing; that means nobody’s paying it, so it’s no disincentive.

    On balance, therefore, let’s keep it in order to fend off the left’s attacks on this govt as self-interested millionaires. Millionaires they might be, but that doesn’t mean they cannot govern in the national interest.

    As to how well they’re governing, that’s another matter.

    Like

  31. 79
    Marcus Edwardius says:

    It is possible that this is exactly what the banks have been aiming for. For a long time under Labour there was something called the Small Firms Loan Guarantee (SFLG) Scheme. Under this scheme small businesses could borrow up to £250,000, with the Government underwriting 85% of the deal. If the business went pop, the business owner was only ever liable for a max of 15%. As such, the banks loved it (as they were able to lend and get 100% security for their loan) and dodgy businessmen and accountants loved it too – as a whole load of these businesses went bust and the Government paid off the debt.

    A good solid business will always be able to find funds. It’s shaky businesses that find it difficult. This type of Government underwriting will support a few future winners, but there will be many more failures than successes.

    Like

    • 84
      Anonymous says:

      I don’t know when the SFLG Scheme ended but it certainly ran for years under both Thatcher & Major so it wasn’t just Labour.

      Like

  32. 80
    Ho ho ho garth... says:

    Michael Winner’s back..? calm down dear, he’ll emigrate again when nick & dave have to do their agreed jobswap in 12 months time…

    Like

  33. 86
    Politicians are CUNTS says:

    the numerous ways these devious bastards have to keep all the wealth to themselves hey ……

    Like

  34. 87
    Politicians are CUNTS says:

    oh, also

    see Dave is popping into the country tomorrow to give us a stirling speech on how to keep our chins up through a fucking crisis – then he’s off globetrotting again to save the world you know …… hmmmmm

    Like

  35. 93
    Displaced Brummie says:

    OK, so because some banks decided to send Billions of £ to American so they could lend money to a minimum waged store clerk in Iowa and thousands of his impecunious chums throughout the USA, the banks got burnt.

    “Well!” Say the bankers. “We have certainly learned our lesson well. Because we now know it is dangerous to lend money to someone on a minimum wage in the USA, we also realise it would be equally dangerous to continue to offer liquidity loans to British firms who have outstanding invoices! We also will not lend money to anyone with a ‘B’ in their name, unless they come on a Tuesday.”

    Like

  36. 94
    Lord Justice Pickles says:

    Dear old Guido, same old tub-thumping.

    “George Osborne presumably would concede that Nigel Lawson was also a fiscal conservative, yet he managed to cut the top marginal tax rate from 60% to 40%.”

    How convenient to forget to mention the tiny fact that this tax cut was in 1988. And guess what? Both 1987 amd 1988 had GDP growth of 4.5% in both years!

    Tax cutting is easy if the economy is booming. Guido (old Tory that he is) loves tax cuts for the rich. I wonder why?

    Like

  37. 109
    Bob says:

    Can it really be true that our Dave is going to tell us all to repay our debt? Has he taken leave of his senses? (1) He presumably assumes that everyone’s like him, and has a cash pot from which they can conveniently repay their loans. For most people, that’s fantasy. (2) If money goes into debt repayment it won’t go into consumption, so the economy will shrink still further. I wonder what they teach on the PPE course at Oxford in order to produce this level of economic illiteracy.

    Like

    • 110
      Bob says:

      Ah! It wasn’t his economic illiteracy, or tendency to patronise, it was that of his ‘aides’. How reassuring.

      Like


Seen Elsewhere

LibDems’ Loss is UKIP’s Gain | Telegraph
Fiona Woolf, Leon Brittan and the Establishment Cover Up | Mail
£8 Billion NHS Black Hole | Times
5 Things We Learned From Guido’s Party | GQ
Revealed: Guido Fawkes Anniversary Dinner Guestlist | Peter Oborne
More Owen Jones Errors | Michael Ezra
Why Should Men Get Equal Maternity Leave? | Laura Keynes
Dentists Have Last Laugh Over Sneering Keynes | FT
Why’s Clegg Giving Men Paternity Leave? | Conservative Women
Cam Cannot Stem EU Immigration | David Keighley
9 Mansion Tax Questions for Ed Balls | TPA


VOTER-RECALL
Find out more about PLMR


Chris Bryant talks to the Times Diary about a famous gay actor:

“I don’t think I’ve had sex with him. He says we had sex in Clapham. I’m fairly certain I’ve never had sex south of the river”



Progressive Inclusion Champion says:

Great to hear Carswell call for inclusive policies and that UKIP must stand for first and second generation immigrants as much as the English.


Tip off Guido
Web Guido's Archives

Subscribe me to:






RSS




AddThis Feed Button
Archive


Labels
Guido Reads
Follow

Get every new post delivered to your Inbox.

Join 1,534 other followers