BACKBONE OF THE NATION

Where will it all end?  The police are to be called in every time someone is called a nasty name and resignations are demanded, and obtained, for using such heinous utterances as ‘pleb’, while the banks dream up new whizzo schemes to part the citizen from his hard earned cash and the utility companies allegedly fiddle commodity prices to boost their profits at our expense.Thank heavens there are things that we can still rely on such as the Royal family, the Pound Sterling and the dear old BBC.

JUNK STATUS

The credit rating agency Moody's has downgraded 16 Spanish banks after an alleged run on Bankia, Spain’s fourth largest bank, and worry about the Spanish government’s ability to shore up their banking system. But wait, is this not the same Moody’s that rated the US junk investments, based on sub-prime mortgages as AAA?  Who is watching the watchers, who is rating the rating agencies.  Who gave these undemocratic, secretive, organisations all this power?  Rating CCC , I think.

PUNISHMENT OF THE INNOCENT

I once heard this tale from the US. A guy was fishing from his little rowing boat when he saw a water snake with a frog in its mouth. Being of a kindly disposition he grabbed the snake and rescued the frog. But then he thought that he had deprived the poor snake of its dinner. He looked around the boat and the only consumable on board was a bottle of bourbon.  So he administered a slug of it to the snake. The snake disappeared below the water and reappeared with two frogs in its mouth.
Moral:  If you reward the behavior you don't want you'll get more of the same.

This is rather like the current financial crisis in which we are enmeshed.  Part of the problem was the irresponsible behavior of the bankers, so while they continue much as before their bonuses are still paid.
Part was caused by individuals who ran up huge personal debts, so interest rates are reduced to make the pain of their excesses bearable.  What was needed was for people to save so that they will be secure in their old age.  So the actions of both this, and the previous government, has been to raid the pension funds and ensure that the returns on savings is so low that savers loose money.  Expect more frogs.

WHEN WILL THEY EVER LEARN

After mis-selling of endowments and payment protection insurance, watch this space, the next one up is credit cards.  Whenever you go to the bank they will always try to get you to take out a new credit card, no matter what state your finances are in and how unsuitbable the offering is.  Here we go again.