I thought Labour MPs were going way over the top when they spoke about the financial crisis being Gordon Brown's equivalent of Margaret Thatcher's Falklands War, which transformed her fortunes before the 1983 election. Maybe they were right, as Brown seems to have declared war Iceland over the threat to £800m of British councils' money from the collapse of Icelandic banks. Lots of inevitable headlines in today's papers about a new cold war and cod war. With talk of frozen assets too, this crisis is good news for headline writers if no one else.
The Iceland problem came at a handy time for Brown. His undiplomatic remarks diverted the headlines away from the councils' pressure on the Government to bail them out for the money they may lose in Iceland. It also kickstarted his drive to "sell" the unprecedented £500bn rescue plan for British banks to a sceptical public. I suspect plenty of Labour MPs will get some searching questions at their constituency surgeries this weekend about why taxpayers are picking up the tab for the bankers' mistakes.
Brown has toughened his language on City excesses and the need to stop bad bankers getting bonuses to avoid being outflanked by David Cameron and Nick Clegg. But there's still no sign of precisely how the Government will use its stake in the banks to control pay. As the days pass, it's clear that the dramatic announcement of the Great Bail Out was only the start. Brown has a lot of questions to answer. And he won't be able to refer them all to Reykjavik.
This government hss been using the threat of terrorism to bring in sweeping changes to the security systems and procedures in this country. So far these measures have been used to prevent peaceful protests at the Labour Party conferences. Now Brown has used these anti terrorist measures against a sovereign state in a financial dispute.
It is clear that Brown will use these anti terrorist measures whenever it suits him. Therefore any further extension of these security measures should be firmly resisted.
Posted by: Trevor Hayward | Friday, 10 October 2008 at 01:15 PM
I understand Kaupthing incorporated in the UK was refused the same status for Tier 1 capital.I guess Gordon didn't know the size of the problem when the FSA effectively put them into liquidation.This is a problem of Gordon's making.
If as a result he drives Iceland and their allies Norway into the Russian hands remember when you energy costs rise who started it. Your bully tactics will rebound as the judgement is poor.
Posted by: roger b | Friday, 10 October 2008 at 04:11 PM
Iceland started to going in the opposite direction & we're going to shoot it?
Posted by: RSBrdgman | Friday, 10 October 2008 at 05:16 PM
Browns "bail out" is riding high on a wave of favourable publicity. His aim to lead the world to financial stability by UK example is his mantra. Add to this his toughness with Iceland, justified or not, getting the headlines.
But as yet nobody has claimed control of bankers bonuses.
In a BBC TV interview today Brown seemed to suggest that if other countries dont follow his line the "bail out" could fail.
I hope we are not passing the buck already.
Posted by: jon dee | Friday, 10 October 2008 at 05:54 PM
I cannot know @ your banks,but what i have seen in the news saddened me greatly. Here plenty, like 70 to 1 americans opposed the bailout passed by our congress. Is that not 'taxation without representation'? I can however know that your people are the victims of power hungry
thugs,like the US.
Our govt does not serve the will of the people. It took such tactics as propaganda,censoring,secret prisons,data mining to get americans really angry. The Iraq war sadly not enough. Wallstreet/banker greed was the last straw. Americans will fight to get back the constitution, not part, NO COMPROMISE.
If Obama wins, he has my pity. No man can fix it all.Actions, words to create fear,are done by pathetic people, most not 'Alquada', but govt!! The 'terrorism threat' was used to justify breaking the law, passing unconstitutional bills.Yes the threat is real,that is the point of the 2nd amendment. A civilian militia to Fight enemies. Oh,many eroded that right, but we will never be disarmed like Hitler's Nazi germany!!
Most Americans see the govt as their enemy, think it is all lies.You just gotta feel for the guy,especially if he real.Not an Obama fan, but what if he cares, is not like the rest?
He's got econ collapse,strapped by congress and facing folks whom are 'waiting for the other shoe to drop'.
I hope UK/euro gets on its feet. But do you really think your banks and govt have your best interests at heart? Read a book by a former Judge called 'the govt is not your friend'.
The US hope is ordinary americans, not crooks.Uk problems are NOT the people. Got any boots?
"Give me liberty or give me death"
Posted by: icewolf wooden | Friday, 10 October 2008 at 07:10 PM
this shows how "un-free", and in fact, how close western civilization are getting close to pure fascism. The situation today is a mirror from the situation in 1930 to 1940. Then Germany went over the edge and took the role of the evil bastard. Who will it be today ???? This situation is terrifying.
Posted by: runar | Saturday, 11 October 2008 at 03:07 PM
>> and took the role of the evil bastard. Who will it be today ???? This situation is terrifying. <<
We already KNOW who it is, but if you name them, the Moderators delete your postings.
But think who it is who has a Gulag on Cuba where they hold innocent people without trial, and that will give you a clue?
Posted by: Neil McGowan | Saturday, 11 October 2008 at 07:20 PM
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Posted by: gabdo ysbovdc | Wednesday, 18 March 2009 at 10:37 AM