Saturday, 7 March 2009

Government takes over LLyods

HMG now controls 77% of Lloyds voting equity. CEO Eric Daniels & his chairman Sir Victor Blank have turned Lloyds from a well funded solvent bank into a basket case in 6 months. Give Sir Fred and Sir Tom McKillop their due it took them over two years to achieve this with RBS. However, if anyone thinks bankers are bad at running banks for a real mess you have to have HMT on board! You ain't seen nothing yet!

The thought of government directed lending at RBS, Llyods and NRock makes my blood run cold. Bad debts will rocket. Foreclosures will be banned. Top up loans and bail outs will be the order of the day. It will be throwing good money after bad on a grand scale. The real losers in this fiasco so far have been the bank shareholders. They have lost virtually all their money. That includes many ordinary people through their pension funds and ISAs. Now it will be everyone in the UK that takes the equity losses and these losses will be huge. Sterling will be trashed on the Forex market, unemployment will rocket and the populace will turn to extremes either the far left or the far right. Cameron, Boy George and the Mekon will sit there like the three wise monkeys waiting for power to fall into their equally grubby and incompetent hands. They also are completely clueless as to how to sort out this mess.

The only good thing I could see possibly coming out of this will be a complete reform of our Parliamentary democracy which under the control of party spin doctors is no longer fit for purpose, neither the Commons or the Lords. We have not had a military government in this country since 1660. I would not bet against another one occuring in my lifetime.

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