Turmoil on the seas of high finance

We are currently in the middle of one of the biggest banking and stock market melt downs the world has ever seen. The British taxpayer is now a share holder of UK banks PLC (still waiting for my certificates), with one of the biggest injections of capital in order to - wait for it - encourage credit.

Isn't this what got us into this mess in the first place?

Without my agreement, I've had to loan the banks £1,600, so they can continue to lend money to people, to keep the economy going. Well, at least they have agreed not to take a bonus, this year!

It has to stop somewhere. We can't go on lending money that we don't have to people who are having more and more difficulty paying it back. It may well be painful, but at some point we may have to go back to (sharp intake of breath) saving for the stuff that we want before we get it.

Of course Gordo's is being hailed as the saviour of the worlds economy, the hero of the UK banking system. Now, forgive me if I'm wrong, but who was one of the major architects of the mess we are in now?

Some bankers, a few weeks ago considered heroes because of the magnificent ways they created wealth, are now dropping off their perches like flies. As my wife pointed out, bankers don't create wealth, they just move it back and forth, its the people who work for a living that create the cah that pays for the taxes that goes towards bailing out banks.

Here's a great explanation of the stock market, that suddenly appeared on the internet

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each.

The villagers seeing that there were many monkeys around, went out to the forest, and started catching them. The man bought thousands at $10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at $20. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer increased to $25 each and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at $50 ! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35 and when the man returns from the city, you can sell them to him for $50 each."

The villagers rounded up all their savings and bought all the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!

Now you have a better understanding of how the stock market works!!

As my wife commented (plaguerising again), what would have happened if this were the farmers who were in trouble, would the gov bail them out. I pointed out that when the farmers were in trouble with Foot and Mouth, their stock was shot, but with the bankers (who funnily enough have had their stock shot too), the compensation is vastly more. Just goes to show, money does talk. Makes you wonder, if the farmers had as much political power, or influence on the careers of the politicians, would the bail out package have been the same?

I'm a bank shareholder

Apparently, as a result of a £50bn cash injection by the gov, I'm now the proud owner of £1600 pounds worth of stocks and shares in the UK banking industry.

The banks must be so excited by this free windfall. Now all the top managers can continue to receive their entirel modest and understandable performance related bonuses - after all its not their fault everythings gone tits up, and we do need the best poeple in these highly important jobs too.

I'm waiting for my share certificates.

And remember punters, the value of stocks can go down as well as up!

Data, data, data

Yet two more data losses today

50, 000 RAF files missing, stolen from a 'secure' military base.
http://www.dailymail.co.uk/news/article-1063332/Helpline-opened-50-000-RAF-files-stolen.html

11, 000 teachers files lost by a courier
http://www.itproportal.com/articles/2008/09/26/more-data-mayhem-details-11000-teachers-get-lost-courier/

Becoming a bit of habit, wouldn't you say? And this on the same day (virtually) that the gov rolls out its id cards
http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/09/28/do2804.xml

It seems that id cards are voluntary (like they are going to stay like that), except for foreign nationals. Like any self respecting terrorist is going to rush out to but an id card. And it seems the data cantained on the id card is innaccurate in a propartion of the cards, and iy'll only be a matter of time before the cards are hacked.

This is yet another example of a complete and utter waste of money. I cannot find one article in favour of id cards, not gov related, anywhere. For crying out loud, LISTEN TO US.

Time for a change

Ah, the vultures are circling.

In one of the most patronising set of interview responses I've seen in a long time, Siobhain McDonagh gave a series of non responses to questions about Gordon Brown, new leadership contests and contestants, with as sitting on the fence so as not to damage her future career replies aimed at ousting Gordo, and nothing more.

The rest of the vultures are circling. Gordo's lack lustre premiership is coming to an end - lets see how long he can cling on for.

http://news.bbc.co.uk/1/hi/uk/7613701.stm

Have to stay till you're 17

Yesterday was the first time pupils starting at secondary school would be legally obliged to stay until they were 17 years old.

As far as I'm concerned the jury's still out on this one, but I can't help thinking that the ones who don't want to stay probably won't, but at least it'll keep the govs unemployment figures down.

More data gone astray

Another data stick's gone missing, from a private consultancy company, employed by the gov, but already the signs of squirming's started. Another nail?

Trounced in Glasgow

Today, Labour were wiped of the map in a Glasgow by election, by not just an earthquake, but off the Richter scale (still trying to work that one out), by the SNP. They lost their 25th safest seat in the country, with 11, 000 odd votes.

There is a message to labour in there. Labour says that the country is saying they must listen harder. Wonder what the country is really saying?