Monday, 5 December 2011


Why are we never really told in language that we can all understand what is really happening with the worlds economy?

Is it simply a case of treating us like mushrooms, constantly left in the dark and fed on manure in the hope that we will not ask too many awkward questions?

Recently I have been asked by a number of people (usually over a drink) to explain to them what is really happening to us all, and so I decided to commit it to print for others to take in and question, I would appreciate it your views.



First of all to understand the mess we are all in now, and how bad things really are, we need to understand how we got into the mess, and also who was responsible for us getting us in the mess in the first place. Basically during the 1990's, and into the early 2000's Banks across the Western world particularly in the USA but also in part in Britain started to relax the rules on lending money to house buyers who were encouraged to take out bigger and bigger loans. In more responsible times people looking to buy homes were usually advised to borrow no more than three and a half times their total single/joint annual income, but all of a sudden banks were giving mortgages out like confetti, in the USA few checks were taken on whether or not people were able to afford to pay back the loans and even benefit (Welfare) claimants were being given mortgages despite their income being far lower than the repayments!

The Banks then sold that debt (they would package 100's of mortgage loans into one bigger debt) onto bigger financial institutions to try to reduce the risk to their own bank. And then the bubble burst as the financial institutions who now were left holding the risk suddenly found out that the people living in the homes couldn't afford to pay back the mortgages and as a result repossessions rocketed. As a consequence some of the Banks and the super banks went bust and no one had any money to lend out to anyone. This of course had a massive impact on other businesses who now couldn't borrow from the banks to either expand or even cover short term cash flow problems, so the economy started to slow down, people were laid off, who then couldn't pay the mortgage and the whole cycle went around and around. Meanwhile the value of peoples properties were also falling meaning people owed far more than they could ever sell their homes for, but even if they could afford to sell them potential purchasers also couldn't anymore get a loan from the banks. During the boom banks would lend couples 100% of the cost of the house and even more on top in some cases, but now the banks wanted deposits and restricted total loans down to 70% to 90%. First time buyers couldn't even afford the deposits and the housing market stalled.

The crazy thing here though thing is that the big financial institutions were so tied into the world economy, that they knew that they could take such risks with other peoples money and homes in the faith that the governments will come to the rescue with billions and billions of pounds in order to avoid financial meltdown within the stock markets. These people are still flying around in their private jets  and driving Bentley's whilst many who now live on the edge through in some cases bad decisions but others through  necessity whilst the banks continue their casino style gambling on the worlds banking roulette table. Traders even glout on the TV as to how wonderful the reccesion is and how every new collapse brings them more opportunities to make money.

The Labour Government:

Despite both the Tory and Lib Dem parties repeating over and over again like a mantra since the election in 2010 that it is all the Labour Party's fault, The Labour Government at the time  were not responsible for the meltdown, the reasons for that are outlined above however they cannot in any way be seen as just innocent bystanders in this mess.

They failed to implement any guidance to or legislation on banks restricting the amount of lending to avoid bad debts. They also let the finance institutions act exactly how they wanted without any meaningful intervention. The former Chancellor, Gordon Brown and to be Prime Minister at the time took his eye off of the ball and stood aside as the sub prime mortgage debts were being resold as good business.

Having given the Bank of England almost total independence he had no room to manoeuvre even if he wanted to, that coupled with a desire to keep his new job meant the country just drifted into more borrowing and less action.

The government also had left social housing projects solely within the private sector which would never fill the demand of such housing. A boost in public sector house building at the time in my mind might just have saved the day, but the lack of supply fuelled house price inflation to ridiculous levels.

Joe Public:

The other player in this sorry affair was the public at large who had become obsessive about house ownership, home improvement, buying things we didn't need and whacking everything on the plastic, as a result personal debt spiralled.

The feel good factor from the pre 1998 prosperity made a lot of people completely forget the self restraint of managing their debts sensibly. A must have, will have it now society, not even embarrassed by taking on extra debt they cannot afford. Now we are all paying the price. Housing costs had also rocketed and now took up more and more of the monthly salary as a % of income. We were all trapped in the credit card debt zone and unprotected against the ill wind that was blowing.

In part two (to follow very soon) we take a look at the Country's income and expenditure over recent years and try to make sense of the economy from a  Mr Micawber (Charles Dickens) point of view

 "Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

in order to get our head around just what the country is earning, what we are spending and how we close the gap.


  1. You will never be able to get away from the absolute fact that the Labour Party were spending shed loads of money that wasn't there.
    Brown was proven to be anything but 'prudent', a tag that was stuck on his 'best chancellor ever crown' by many when things were chugging along comfortably. It was when difficulties became obvious to the man on the street, that Brown, Balls, Milliband an co were found seriously wanting. They were an unmitigated disaster. They are, even now peddling the same policies. No lessons learned there then.

    What was their answer? Spend more!!! We're now all paying the price and will be it seems for years to come.

    Yes, the Banks were running loose but the Government either didn't want to see what was happening or were indeed too thick to comprehend the consequences of inaction. Boy, did they talk some tripe?

    This present government are still talking plenty of tripe but in conjunction with an attempt to rectify matters. Only time can and will tell us if that attempt is enough.

    Now that's called plain talking.

    This is not a politically motivated message but a viewpoint from an ordinary person. I believe there are many people who have very similar views.

  2. Anon, hopefully after reading parts two and three you may reflect on some of the above , prior to 1998 we as a country were earning far more than we were spending, and spending to encourage growth increases the governments income in the long run, any how your views are very welcome.

  3. I agree with investment but "spending for growth" must be done in conjunction with keeping the household accounts in order. Remembering the 'rainy day' no matter how much money we 'appear' to have is always a 'prudent' ploy. We had many 'debts' even through those 'hazy' days of supposed plenty. For instance the replenishing of ravaged pension funds should have been a huge priority. We might just have avoided all the discontent in that event. You must never spend what isn't yours.

    That's a very simple and HONEST rule to adhere to.

    I've mentioned the H word but very sadly there is very little of it about.




Blog Archive

Thank You

Thank you for visiting "tonyclarkegreenparty" The views expressed here are mine and mine alone. They are made by me personally in my own capacity as free citizen and not as representative of any outside body or council that I may serve on or be employed by. However if anyone is offended by any of these comments or feels that they should be corrected then please contact me in the first instance at and I will do my best to consider your comments and correct any errors.


100 key seats 1980's 1997 2013 50th Birthday 96 Abington Park absent parents abuse Academy Status Adam Simmonds Adam Simmonds. Police and Crime Commisioner Northamptonshire. Class A drugs Adam Simmonds. Police commisioner. Northamptonshire County Council Afghanistan Afro Caribbean Agent airbrushed for change airlines Al Quida Aldi allowances AlQuida Anarchist ANC Andrew Mitchell animated fairy story Anjona Roy Ann Frank Ann Timson Apathy Arab League Council Archway cottages Arms raid arrears. Northamptonshire race Equality Council Ashes to Ashes Ask a Socialist astragate Asylum seekers Audit Baathe Party bamboo joint Banana Banker barbecue tax Bashar Assad bbc BBC radio 4 Bedroom Tax Benefits benito mussolini Benjamin Netanyahu Big Freeze Big Society Billy Bragg Binners Birds black and white cats Black Swans Blair blogger blogs Blood Blowing smoke up your skirt Blue Light Services BNI BNP boardroom buffoons Bone marrow Boris Johnson borough council boot and shoe borough council elections Borough Solicitor BP Bradlaugh Brian Binley Brian Hoare brighton Britain in Bloom British Government broken britain Brown Pelican Bryn Estyn Children's Home budget cuts Bulgarian Bullingdon Club Burglars Bus Interchange Bus Station Bush businesmen Cabinet Call in campaigning Cannes canvassers capitalism Captain Ska Car Park Revenue car parks career wreckers carillion carlisle Carrillion CASPAR Castle Ward Castle Ward 2 Catherine Tate CDC censorship Census 2011 change Charity Commision cheating cheats chicago Chicago Fruit Police Chickens Child Abuse China Chloe Smith Chris Grayling Christmas Christopher Myers chronicle and echo Clement Attlee Cllr Andrew Simpson Cllr Andy Mercer cllr Bill Parker Cllr Brian Hoare Cllr Brian Markham Cllr David Mackintosh Cllr David Palethorpe Cllr David Perkins Cllr Dennis Meredith Cllr Elizabeth Gowen Cllr Gareth Eales Cllr Jean Hawkins Cllr Jim Harker Cllr Jim Harker Road Safety Cllr John Caswell cllr John Yates Cllr Malcolm Mildren Cllr PD Varnsverry Cllr portia wilson Cllr Richard Church Cllr Robin Brown Cllr Sally Beardsworth cllr Scott Collins Cllr Tony Buckley cllr Tony Clarke Cllr Tony Woods Cllr Trini Crake Clr David Perkins Clyde Loakes Coalition government cobblers combustion committee places Community Basher conference 2013 Conservative Conservative Party Conservatives consumption Contracts Corby corporate fools corporate spin corrupt Council Council tenants councy council County Council Election county council elections CPS credit crunch crime Crimea cuts CWU Daily Mail daniel hannan mep. NHS Daventry District Council David Cameron David Harvey David Perkins. Brenden Glynane David Ross day fotlu DDC debt decent homes Defend Council Housing Delapre Abbey democracy wreckers destruction disaster DIT Britain Dostiyo Dot Cotton Duckenfield Duckinfield Ealing Council Earworm Community East Midlands in Bloom East Midlands Labour Party easy read economy Ed Balls Ed Millaband Ed Milliband education election Elections 2013 Electoral iregularity Ellis Island email Emilie Oldknow Emily Oldknow Empowerment fund Enterprise Enterprise Managed Services Environment Agency Eric Pickles ester ranzen EU euro European parliament expelled F W De Clerk F*ck you facebook FAir is worth fighting for Fairground ducks Fairytale of New York Far Right fire Fish MArket Fitzy fixed penalty notice Flashman Floods Florence and the Machine flytipping Fountain free Friends of Delapre Abbey Full Council Gaddafi Gang Culture Gaza GDP general election Geoff Howes George Bush George Bush Jr George Osborne George Osbourne Germany Glasgow mosque GMB Golden Handshake google gordon brown government Government Cuts Grant Shapps greed Greedy Bankers Greek economy Green Green Party Greyfriars growth 1980's Guantanaomo Bay. Shaker Aamer Guernsey Harry Enfield Havelock Havildar Gaje Ghale haymarket Hazel Blears health Helicoptors Help the aged highways Hillsborough hoodies hope not hate House of Commons House of Lords Housing Housing numbers Housing. eviction human rights Ian Gibson IDF il duce Immigration imprint Independent Independent Green Independent Network independents India Injunction inquiry international internet Iran Iraq Iraq war ISIS Islamaphobia Israel Italy IVA jedward Jeremy Clarkson jerk chicken Jihadists Jimmy Carr Jimmy Saville jingles Joe Joyce John Dickie john gardner John Lennon Johnston Press Journalists justice justice for the 96 KBC Ken Livingstone Kevin Quigley Khudadad Khan KPMG Kraken Kurdistan La Madala Labour Labour Group Labour Party Lady Wantage Lampedusa Land Tax Lansbury last of the summer wine Leadership election league two Learning difficulty Learning Disability Lebanon Lee Barron leeds Legal and General Liar Liar Lib Dem Liberal Democrat Liberal Democrats Liberals Libya libya. david cameron Likely lads Lily allen Liverpool lloyd grossman local candidates local governance local government Local Government Association local press localism bill Loft insullation London Labour London Olympics london riots Loo of the year Lord Mandelson Lord Michael Ashcroft Lord Stuart-Smith Lord Taylor Lord Waterhouse LSE Mackenzie mad as a box of frogs Madiba Mahmoud Abbass Malcolm Mildren Margaret Thatcher Market Square Market Square Fountain Market Trader Martyn Gilleard martyrs May 2ns Medhi Hussein media Michael Ellis Michael Foot Michael Turner QC Micheal Ellis MP micheal martin Middle Classes Middle East migrants Mike Ferrigan Milk Snatcher millions Miserable old sod mk dons mortgages MP's Expenses mps expenses Multi Agency Group Muslim community Narrowboats Nasseem Nicholas Taleb Nathan Worrell National Debt national front Nato Nazis. EU NBC NCC Neil Lewington Neil Magregor NEL. MIPIM Nelson Mandela Neo Nazis NEP New Statesman New Year NHS Nick Clegg nick clegg.norman clegg Nick Griffin Niel Kinnock NNDC NNJPU Noor Inyat Khan North Wales Police Northampton Northampton Borough Council Northampton Chronicle and Echo Northampton Conservatives Northampton Independent group northampton independent voice Northampton Labour Party Northampton Labour Party. Northampton Borough Council Northampton Liberal Democrats Northampton Saints Northampton South Northampton South Conservatives Northampton Town Football Club Northamptonshire County Council Northamptonshire County Council Elections Northamptonshire Enterprise Limited Northamptonshire Enterprise Partnership Northamptonshire Music Service Northamptonshire Police Norwich North not all party's are the same ntfc Number 10 Observer Oil Old Labour Oliver Tambos Paddy Tipping MP pakistan Palais de Festival Palestine Parish Poll. Police Commissioner Elections parking parking services parliament parsons Party Political Broadcast Paul Blantern Paul Varnsverry PCC Pegasus Penalty Charge Notices pensioners pest control pest express Peter Mandelson Peter Righton pfi phillip mears photos for all occasions Pinky and Perky Plain English planning police Police and crime Commissioner Police Commisioners Police Commissioner elections political Polycythemia Pope Francis poplar porkie pies President Obama privatisation Professor Pongoo proportionality public consultation public deficit Public Service cuts purdah que sara sara Racism Radio 4 rats Rebekah Brooks reccession Recycling referendum refuse collection regional labour party relegation Rememberence Sunday residents parking retail Richard Hannon right wing riots Robert Cottage Romanian roofing RPA act RSA Rushden Sainsburys Sally Keeble Sam King Scrutiny Seb Coe Second Life Shame on you shameless Shami Chakrabarti Sheltered Housing Shire shirkers Shona Deans Messinger silver medal Simon Cox Simon Williams Skateboarders skivers. scroungers Slipping back in time SNC Snow Spad speaker spies spring boroughs Spring Boroughs Residents squandering St Andrews st andrews road St James Stagecoach stagnation standard and poors standards board stealth tax Stephen Pound MP. Jeffrey Archer Steptoe and Son Steve Messham Stock Market street lights supergran suspended Syria Taliban Tax Evasion tax the rich tea team GB Terry Waite Tescos Tess Scott Thatcher The Cobblers The Conservative Party The Green 'Un The Green PArty The Press The Queen The Report The Ridings The Saints the story of broke the story of change the story of stuff The Sun through the keyhole ticckle Till Death do us part" Tom Watson MP Tony Blair Tony Clarke Tony Clarke MP Tony Woods Tory Tory Government Tory Party Tory's town centre trade unions Trees Trevor Kavanagh TTIP TUC Trident Tuck Inn TVC E-coli and coliforms tweets twitter UAF UK debt UK floods UK Government UK riots UKIP UKIP. Green Party UKIP. Labour Party Ukraine Ulric Cross ULT UN unemployment union flag unitary authorities unitary government Unite against Facism United Learning Trust united nations Unity College Upper class USA usual channels Vara Varnsverry. Guildhall vat Virtual vlog vote Walter Tull Waltham Forest Wardens watchdog WDC Welfare welfare cuts west northamptonshire joint planning unit Westbridge Westminster Weston Favell School what's the point of Nick Clegg wicked William Hague window dressing winter wonderland witch hunt WNDC WNJPU workers Working Class working mens clubs workshy written questions WWII youth services