The chancellor has insisted it is his duty to be straight with the public, after telling a newspaper the UK faces its worst economic crisis in 60 years.

 

Alistair Darling told the Guardian the downturn would be more "profound and long-lasting" than most had feared.

 

Shadow chancellor George Osborne said Mr Darling had "let the cat out of the bag" about the state of the economy.

 

But Mr Darling told the BBC it was important to explain the "unique" problems being faced globally.

 

The chancellor admitted, in his newspaper interview, that the government had "patently" failed to get its message across that it understood people's concerns about rising living costs and growing job insecurity.

 

He said that voters were "pissed off" with Labour's handling of the economy, a key issue at the next election, and said it was "absolutely imperative" that ministers communicated their intentions better.

 

When asked why he had been so frank, the chancellor told BBC News: "I think it is important that government ministers and particularly me as Chancellor level with people.

 

See whole story here : http://news.bbc.co.uk/1/hi/business/7589739.stm

Was he right to make this statement, or should he pretend that everything in the garden is rosy?

of course he was right if that his honest opinion on how the economy is likely to perform.

Isn't it strange that for once, when a politician tells the truth he is derided, and the pound plunges to the lowest against the Euro and drops against the dollar.

 

Just goes to prove that it is better for them to lie.

 

And they wonder why we don't trust any of them. <_<

At least unemployment and inflation isn't insanely high ;)

.... Well after Meltdown Monday & Troublesome Tuesday & the bankruptcy of U.S. investment bank Lehman Brothers yesterday (the biggest bank to collapse since the Great Depression of 1929), then unfortunately Yes.

Not sure if I can shed any tears for bankers who lose their jobs, they are the ones to blame for the whole financial problems as I see it. They lent billions to people they knew could not afford to repay mortgages, but hey they got their commission, and their oh so VERY large xmas bonus, and the huge salary that goes with it.

 

So no sympathy for them.

 

However we are the ones that will lose out eventually, because our mortgages will remain high, our savings will be worthless, and as to our pensions, I think we can kiss goodbye to that. :angry:

 

If I fail to keep up with my mortgage payments I will lose my house, no one will help me, definately not the banks for sure. But if they fail to keep afloat they expect the Governments to bail them out with our money.

 

You couldn't make it up.

 

If we are not careful this could end up like 1929. Back then people threw themselves of buildings, wonder what this lot will do.

In a way it was not a good idea to tell the population at large. Call me unfair, but plenty people who read have been aware of trouble round the corner for a long, long time regarding the US banks and their mishandling

 

Broadcasting a warning in quick, bite-size, tabloid snippets only serves to cause mass hysteria and it's the very thing that can drive the country into a crisis.

 

You only have to look at reports of 'potential petrol shortages' for that...one hack sensationalises a remote possibility and, hey presto, there's a petrol shortage as scores of people turn up and queue at the pumps.

 

Sometimes it is best to keep things 'under wraps'

In a way it was not a good idea to tell the population at large. Call me unfair, but plenty people who read have been aware of trouble round the corner for a long, long time regarding the US banks and their mishandling

 

Broadcasting a warning in quick, bite-size, tabloid snippets only serves to cause mass hysteria and it's the very thing that can drive the country into a crisis.

 

You only have to look at reports of 'potential petrol shortages' for that...one hack sensationalises a remote possibility and, hey presto, there's a petrol shortage as scores of people turn up and queue at the pumps.

 

Sometimes it is best to keep things 'under wraps'

 

Oh, I totally agree.

 

To be honest there are already signs with the price of Oil rapidly falling, and unemployment figures rising that inflationary pressures should soon cool which will help the Governments around the world with their Economic policies.

 

But ultimately this world recession can be blamed at George W Bush's door, seeing how his US Government in 2001 got rid of legislation (originally passed in the USA in 1931 to stop another Great Depression happening) limiting the proportional amount of money that Banks could lend to borrowers for mortgages, etc. Hence banks lent too much money out, at rates that borrowers ultimately could not pay back at.......and hence "it's deja vu, all over again". :angry:

Oh, I totally agree.

 

To be honest there are already signs with the price of Oil rapidly falling, and unemployment figures rising that inflationary pressures should soon cool which will help the Governments around the world with their Economic policies.

 

But ultimately this world recession can be blamed at George W Bush's door, seeing how his US Government in 2001 got rid of legislation (originally passed in the USA in 1931 to stop another Great Depression happening) limiting the proportional amount of money that Banks could lend to borrowers for mortgages, etc. Hence banks lent too much money out, at rates that borrowers ultimately could not pay back at.......and hence "it's deja vu, all over again". :angry:

And the fact he inherited a record surplus from Clinton and managed to turn it into a record depicit (sp?) and being the most powerful country the downturn of it's ecomony affects the entire world and now thanks to Americans falling for a PR stunt of having a woman as a vice president for a Republican Government (who in reality is just a homphobe who has no idea what she's doing) the same thing looks like it may carry on for another four years :rolleyes: I don't even want to think about what looks like will happen over here though. :(

Absolutely, a few of Bush's cronies make a fortune they could never hope to spend and the whole world suffers.

 

Enjoy your time in Hell George, since you clearly believe it exists you should be in no doubt that's where you're going.