25-10-2008

DO WE EVER LEARN.


Far away as in 2006 it started to be obvious that the first entries to a new recession were made.
In that time it was rather obvious that direct action by Governments should be taken.
Actions to curtail the Financial Institutions and markets to stop the excess they were creating.

Financial institutions were interlending as of there was no end to money, loans and mortgages were given at rates which were impossible to repay, even by a fast increasing profit or income.

Markets were gambling on ever-higher prices with not a shred of doubt that it could be collapse.

What in 2006 was obvious, as it did happen now, what is not obvious why it was coming unexpected even an economist of the lowest value could see that this would happen as we did in 2006.

Some financial advisors see the end of the downfall already near, they seems to see the figures but do not know how to work with them. Government advisors still seem to be unclear on how to react.

So is this an abnormal fall to recession, no it is not. What is abnormal that not many countries had put restrictions in place to curtail financial institutions and the Markets.

Those financial advisors should have tried prudence instead of spent. Store and safe instead of spent.
Control and inspect instead of spent, spent, and spent.

After all we know you safe in the good years, so that you still can spend in the bad years.
None of the above was done. The Governments left the Financial Institutions run wild, let the Markets run wild and let the Utility companies flies there customers with unrealistic prices.

This is now collapsed, what have the Governments done to help the people they supposedly govern, well exactly nothing then promises as that cost nothing.
What they did do is pouring money in the bottomless pit called financial institutions, this as a reward for the creed and the mismanagement of its directors who now getting the golden handshake of congratulations for their mismanagement.

Did the Government force the Utilities to reduce their rates to a reasonable level, did they tell the banks to spend carefully. No they did not, the financial institutions still have the free for all policies, the Utilities although the oil price is halved, talk already of increasing the rates. To opt their science fiction income and dividend.

This will lead to more financial disasters for the people the Government is suppose to govern.

Advisors moan that the Opec have reduced their output, as it does not help the Countries who going into recession. Those countries advisors showing with this kind of attitude that they indeed do not have a clue.

The Opec countries and that is the same for all oil and gas producing countries need a steady income, it is for them not economical to say we help those countries, which are falling into recession because of their own doing, and let our own people starve.
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This brings us to the question after we have now learned they do not listen, do they learn, and again we have to say NO they do not. They still bring not in restrictions for Financial Institutions, they still have a free for all Market and they still not restrict the Utility companies from filling their pockets.
Instead they cashing in of the extra taxes they get out of people who cannot afford it anymore due to the lack of Government control.

They are advised by people they know but not by people who know as they do not belong to their circle.
Is there a change that Government will act to restrict the Financial Institutions and the Utilities, they will not as they are not interested in the people who voted them in but in the power and the money, as money attract power and power attracts money.
The main priority for the B&B combination as it was, Bush and Blair, were power and money, money and power, so that after they had left office they could go in the lucrative after dinner speeches. It will be obvious that they would not be asked for those speeches if they had attacked power and money.

Were old leaders such as Roosevelt and Churchill relentless workers for their Country, the nowadays leaders see it as in way of income to money and power and to get rich, the Countries people, yes what about them.
The only exception for so long it will last is the UK head of Government Gordon Brown, who shows promising initiatives, which are hopeful. However, he still does not restrict the Greed of the Financial Institutions and the Utilities. A good leader would have told the Financial Institutions to act responsible, and to tell the Utilities ether you lower the tariffs drastically to fall in line with reasonable tariffs, or risk to be nationalized instantly. A good leader would have the guts to do so and to stand up for his people.

Lowering the tariff would lead to more money in peoples pockets, less repossessions, less burdens on Government finances, so that the fall of taxes of the lower tariff would be set off to against the reduced burden of the Governments finances.

Of Brown or Obama if the last one is elected will show the leadership and the courage to stand up against the power and money quango,s need to be seen, a good leader would.

However, till such a time that will happen the greed will go on, the people will suffer.
From the Governments and the circle of riches view people will still have a choice.
For the homeowners on an overstretched mortgage payment the choice is easy, either heat and loose your home or eat and loose your home. For the poor the old and the disabled the choice is more simple eat and
and freeze to death or heat and starve to death.

The winner is the in all cases the Government, by repossession they buy the house on the cheap, via a Housing Association, and for the poor the old and the disabled they save a fortune by not having to pay any benefits anymore. There for the Government cannot loose, or can they, coming the next election.

For Governments the view of the people as it is today is rather simple, they either are able to pay taxes or they are a waste, and waste you get rid off.