Tag Archive | "housing crisis"

Tory leadership crisis, David Cameron lost at sea

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Tory leadership crisis, David Cameron lost at sea

Okay, okay, so this statement would be typical of New Labour, an attention grabbing headline and little of real substance below the line. But I will try and make up for it!

For the past 6 or 8 weeks and more specifically in the last two weeks, this country has faced one of its greatest challenges in a generation or perhaps more. The present Government has been further weakened by internal feuds and the leader looks as if he is on another planet, in fact, when he speaks, it serves only to confirm this notion. In this turbulent period, the government has shown no leadership and provided and there has been little or no suggestion that they event know what is going on, least of all how to steer this country through the maze.

There is increasing evidence that the people of this country are far more politically savvy than a decade or so ago and they are being far more vocal and expressive about there feelings. With the ban on smoking in the pubs and clubs around this country and the reduction in the cost of broadband, more and more people are expressing their views online. The people are saying, get it together man, you have failed, us, redeem yourself, show us leadership, confidence, depth and honesty. The leader, Gordon Brown, and his cabinet have scurried around at a great rate of knots but achieved nothing.  

The government even resorted to their old tricks of ‘smoke and mirror’ soundbites with the promise of help for all, on energy saving measures. But when the announcement was unravelled, it turned out that the nearly every penny was being put up by the energy companies and even then, they clearly had not agreed, because the government was threatening legislation if the energy companies did not comply. Worse still, the government sought no assurance that we would not pay for these programmes through higher future bills and they put less into the overall initiative than they deducted off the Warm Front budget. Evidently this is a government in turmoil, a rudderless ship, but with no other captain on board.

So what better time for the leader of the opposition, David Cameron to ride to the rescue, to show himself and offer up creative, tangible solutions and ideas? But the amazing ‘invisible man’ is nowhere to be seen. Here was a prime opportunity to set politics aside and come up with proposals, new ideas and the people to drive these initiatives forward. Programmes that could offered all party support, a united front at a time of crisis, after all, this country is at war, albeit of a different type to the conventional description. A self-deprecating speech, accepting that whilst New Labour was the primary entity responsible for our current predicament, he felt that all members of parliament should share in that responsibility.

So, here was a perfect opportunity for David Cameron to demonstrate true leadership and maturity, by offering to assist the government in any way he could, by coming up with alternative ideas, initiatives, programmes and interventions. Rather than using the opportunity to kick a man whilst he was down, the British public just don’t like that, he could have offered a helping hand. Allowed, the British public to see that he wasn’t simply a silver spooned, old Etonian, but a person with substance, initiative, depth and commonsense. A person ready to help when needed, to unite under the flag and tackle the issues head on for the sake of the British public. The so called ‘leader’ of the opposition has shown no such skills, he has become the amazing invisible man and in doing so has demonstrated political cowardice, something that is unforgivable in the current climate.

He is so worried about dropping in the polls, that he has said virtually nothing, he is so scared of getting it wrong, he hides in the corner and he is so petrified of New Labour stealing his ideas, that he prefers to see this country suffer, rather than affect his poll results. This suggests a shallow man, one that lacks the maturity and gravitas to lead this country and above all, one that is driven by polls, rather than actions. Well, the latest polls indicate that his strategy is failing, he has fallen in the polls and the LibDems have picked up the slack and quite right to. Those guilty of political cowardice should not be rewarded. Perhaps we should all be grateful that we found out early enough to do something about it.

Cameron might argue that he is keeping his powder dry for the Conservative party conference, perhaps, but this is akin to a life saver watching a drowning man struggle, whilst he puts his swimming cap on, to ensure that his carefully crafted hairstyle does not get wet! History tells us, that in a crisis, it is often the most unlikely people that end up being our saviours, with those that talk to the talk, rarely proving that they can walk the walk. Because a guy is relatively young and talks posh, does not mean he will be a good leader or for that matter prime minister. In fact, most of our better leaders have not been oil painting, so pretty boy needs to think on!

David Cameron, you need to come out of hiding, show yourself, stand up and be counted. Whatever the polls say at the moment, when the time comes, we will either remember your political cowardice, or the other parties will remind us, so when you need the British public the most, they may just desert the coward. I have always considered the Conservative party to be something of a powerhouse, but now, all I see is a quivering wreck.

Posted in Conservatives, General | Comments (6)

Housing Crisis, what they don’t want us to know

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Housing Crisis, what they don’t want us to know

I am no economist, nor am I a banker, but I invite those that are to pick holes in my assertion or put my mind to rest. I have never been a great advocate of government intervention, but I believe they need to do far more and now, before we reach a genuine crisis driven by the falling property market.

Many people have suggested that the property market is long overdue for a “correction”, but just how far should this be allowed to go? If we assume that a bank has secured its lending against an asset, which subsequently falls, surely at some stage the banks will be required to write down the difference, just like any other business? If this is the case, they could, theoretically, breach their covenants in terms of their reserves.

Banks have very strict rules in relation to their reserves and many may end up having to go cap in hand to the market in an effort to raise money to shore up their capitol reserves. In a nervous market, this is going to be very tough, particularly if there are several banks trying to do this at the same time. The affect of a major bank failing could have catastrophic consequences for the city, Sterling and the UK economy. This would almost certainly lead to some form of government bailout, which would very costly indeed at no doubt lead to the breaking of our own fiscal rules in terms of borrowing.

Therefore, surely the government would be better advised to intervene now, invest what is required to stablise the property market and avoid a banking crisis. The government must know the risks, they pay hundreds of millions of pounds to expert advisors every year. Now, they may want to keep this information from the public, but they simply can’t afford to ignore it.

Posted in General, Labour | Comments (2)

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