Reply To: Spain and UK seem to be competing for biggest fall in ’09

Spanish Property Insight Forums Spanish Property Forums Spanish Real Estate Chatter Spain and UK seem to be competing for biggest fall in ’09 Reply To: Spain and UK seem to be competing for biggest fall in ’09


I think the government has to take its fair share of responsibility for the mess that we are now in together with the senior management of the major banks, whose reckless lending policies have hurt every single person in this country.

The government’s lighweight regulatory powers over the banking sector, their inability to see the extent of the housing bubble, their sell off of gold reserves at relatively low prices and their failure to put aside funds for a rainy day all smack of incompetence and a touch of arrogance

Even before the credit crunch emerged I argued that it was time for change as it is unhealthy to have one party in government for so long. However, I must confess I am now having second thoughts. Given the enormity of this recession (or depression) I believe that keynsian fiscal policies are needed to arrest the decline in economic activity otherwise we will be in danger of losing big chunks of commerce that will be very difficult to replace.

This leaves me with a big dilema because on the one hand I feel that the government should rightly be punished for the mess that they have put us. However, having put us in this mess, I feel that they are ironically the only major party that are promoting the economic policies that I believe are now needed to take us out of it. (that does not include the lowering of VAT which in my opinion is ineffective and a waste of time)

If a new government was voted in tomorrow, I would be interested to know what sort of economic policies others would want the government to follow