People criticised the VAT cut when it was announced (some before it was announced ie leaked) as being ineffective. A worse use of £12bn would be hard to find (if you ignore the NHS IT system or the ID card). What other countries are altering sales tax policies? Natch.
Maybe if Ken was chancellor he might have heeded the warnings
The IMF said that london could be the centre of the storm. A problem in one area fastly spreading to others so that not just housing (mortgage bonds) markets collapsed, but all the other dominos were neatly placed to fall one after another.
In years to come, history (depending on the victors who write it) will (probably) show that the london market was culpable in this along with the fraudulent mortgage brokers in the US (and to a lesser extent the UK).
There was a big kerfuffle in the commons committees this week that none of the leading lights of rbs and hbos actually had banking qualifications - disgust that people who have scant knowledge of the industry they work in being responsible for major decisions. But this is basic nuLabour policy, brining in sensible business heads from outside the sector to run skules, hospitals, child protection etc. People without banking knowledge are allowed to run banks. but only people (fat cats)with banking knowledge are qualified to be regulators.
I'm sure that makes some kind of sense.
nuLabour have brought in a subservience to business and market models that maggie could only have creamed hereself over. Darling quoted keynes this week saying "I would rather be roughly right than precisely wrong" - the policies of the false labour govt have been shown to be precisely wrong.