Stazjia’s Commentary

Gordon Brown Had a Plan

Posted on: October 16, 2008

British £50 notes

British £50 notes

It seems that Prime Minister, Gordon Brown may have had the answer for the rest of the world with his plan for government to buy shares in failing banks in the interests of stopping a slide into recession by propping up the economy and restoring faith in world markets.

Here in the UK, however, banks are saying that the conditions the government is imposing in return for help are too onerous. The British Government will buy preferential shares that have to be repaid before shareholders can receive a dividend. Lloyds TSB are trying to negotiate better terms.

Just when everybody was hoping things wouldn’t get worse, they got worse. Figures released by the UK’s Office of National Statistics yesterday (15 Oct, 2008) shows the biggest rise in job losses since 1991. These figures only account to August this year and unemployment is likely to go even higher this and succeeding months. In fact, David Blanchflower of the Bank of England told The Guardian newspaper that unemployment figures could top 2 million by Christmas.

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