10 October 2008

Broker Updates



PS - The carnage has only just begun.

2 comments:

OscottLocal said...

Ah yes the problamatic Libor Index.. any ideas? we have tried vast injections of cash, tried to encourage banks to do the same and lowered interest rates. Is it just a confidence thing or are the banks trying to hold out for the governments to take more of the risk?

I only ask because i assume you as a free marketeer you have all the answers

Praguetory said...

I think my post is about the FTSE index, not LIBOR. Re confidence, it was clear when the run on Northern Rock occurred that the British public had lost confidence in the government (Darling's appeal for calm precipitated a run on the bank). That mistrust is a wider newLabour legacy, but also relates to the fact that at that time the entire Treasury front bench had less experience in business and finance than I had when I was 26 (I'm 33 now).

Banks generally behave like other private companies. Of course, our top four banks are public ownership - which will have disastrous consequences in the medium term. Unless the government sets out a plan for withdrawal we will have economic Iraq on our hands in the future. No doubt I will come to why it's a disaster to have banks in public ownership in due course, but I'm concentrating on the day job a the moment.

PS - Good luck with the blogging. At least, you're supporting the right sporting teams...