Monday, September 26, 2011

The Balls Factor - Labour Party Conference

Guardian: Reports on the apology tour by the Labour’s Shadow Chancellor Ed Balls, but the articles notes the following, “ Yet there was one admission Labour will not make – that public spending was excessive ahead of the crash. ”. Thus the Labour Party under Ed Miliband does not get it, even the UK Treasury under Gordon Brown warned that the Labour Government had spent to much for very little in the public sector, and it also warned in a spending review that spending should only be in line of inflation. The then Chancellor Gordon Brown and his close aides, Ed Miliband and Ed Balls still supported spending billions that the UK didn’t have, thus the structural deficit that the UK Coalition Government has to deal with, Labour will only be taken seriously if it admits that the Blair and Brown years failed to spend wisely and didn’t keep money in the bank for a rainy day. As someone once noted to this blog, Labour always comes in with great hope but they always wreck the economy at the end of the day.

UK Stock Market and the Eurozone Crisis

Telegraph: Reports that FTSE - 100 ended the day UP, it was up by 0.45%. After last week this is good news folks, but it is all based on rumour, no actual paper plan has been produced, the recent plan for a Greek bailout has still not been passed by all Eurozone States. This blog is very interested who is going to pay the two trillion, or is that another debt for the system. Also if Greece writes off 50% of its debt it cant go to the market for money, thus more bailouts for Greece, so far they have been very slow with their austerity package, one has doubts that they will ever follow through with the plan, the Greek Government would like to get re-elected. The World economic system is not in the clear yet folks, lets see the details of the new plan for Greece.

The Banks and the Eurozone Crisis

BBC News: Reports that European Bank shares have gone up after reports of a plan to deal with the Greek crisis and from that a banking crisis. As posted yesterday, Greece will write off 50% of its debt and stay within the Euro, a two trillion Euro bailout well set up and the Banks with Greek debt will be covered. The question folks will this plan pass the nations that make up the Eurozone, the Coalition German Government is having problems with it own MPs, other nations want Greek Collateral before they give Greece more money. As noted at the time this is a German/French plan, it might make sense in economic terms, but does it pass the political test. The Markets have gone up based on rumour, one hell of way to run a Market. Lets see the details first folks, this just smells to this blog.