THE CREDIT CRUNCH

The recent financial turbulance which is affecting the country was foreseen by members of the BNP for several years.

It was obvious that the excessive borrowing which had taken place under this and the last Tory governments could not go on and the economy would hit the buffers at some stage. Unfortunately this reckless spree has meant the decimation of our manufacturing industries and means that we owe countries such as the middle East states and China vast amounts and we have little to pay them with.
They certainly will not accept our worthless pieces of paper and will be hovering around to take even more of our remaining assets.
Gordon Brown blames America but if he had saved during the bad times and controlled the City's excesses we would have been in a much stronger position to stand the crisis.
The global economy, much loved by the other parties, when it becomes unstuck brings all the countries involved down like dominoes. Hopefully even the politicians can now see the downside of this stupid idea.
Also it doesn't say much for the patriotism of local authorities to invest in Iceland or their common sense. They should have kept their money in Britain to help British business.
BUT
What should we do?

Well not what the government is doing.

All in all they have pledged over £600 billion to the banks who are still charging 10% above the base rates for loans in order to build up their capital.
Why should we build up their capital? Does it matter if they fail? The situation could hardly be worse.
Surely as the government is guaranteeing deposits up to £50,000 and the bank's shares are almost worthless there is no need to help the banks. Why should we bail them out?
The government should instead set up a National British Bank with the £600 billion and give loans at reasonable rates to mortgagees and business, and not the 15% they are now charging. Reckless investments would be stopped and any profits would accrue to the state.
The banks want the losses nationalised and they keep any profits.

I say with the £600 billion injection we should do the reverse and let them keep the losses which they caused while the taxpayer, in return for our investment should have any profits.

That's my opinion, but them I'm no expert (but I did see this coming years ago although the speed of it has meant that I have lost out with the bloody HBoS which I thought was safe).

What do you think?