"Most momentous financial day of our lives"
"Today was the most momentous financial day of our lives," a savvy Tory shadow minister told me last night, referring to the failure of the US Congress to back the £700 billion Bush bank bailout plan. "It is historic."
Here in Birmingham at the Tory conference he was one of the few to realise the significance of what was going on across the Atlantic: the Tory faithful continued to enjoyed themselves, apparently oblivious to the chaos on Capital Hill and the carnage on Wall Street, where the Dow collapsed in a record breaking fall of almost 778 points.
But the Tory leadership knew exactly what was happening: David Cameron and George Osborne were quickly withdrawn from the party circuit and closeted away to plan their response -- being seen quaffing champagne is not a good move when the world is on the brink of an economic meltdown.
The response of our political leaders, in government and opposition, to these "momentous" events is not yet clear. An editorial in this morning's Wall Street Journal excoriates the "feckless political class" on Capitol Hill that "cannot even make a sausage". It remains to be seen if our lot will do any better.
David Cameron is to make an "emergency" speech to the conference at 11am this morning on the financial crisis. No doubt he will repeat his calls for a bipartisan approach. But will the Brown government bite -- Yvette Cooper remained shrilly partisan in her media appearances this morning and it's not clear if the Prime Minister's default position in a crisis is tribal or bipartisan -- and nobody here in Birmingham seems to be sure what the substance of a bipartisan approach should be.
Naturally, events elsewhere are overshadowing this conference. How could it be otherwise when stock markets are in turmoil, banks are being nationalised or shut down left, right and centre and the air is thick with portentous new possibilities, from the collapse of the Lloyds TSB takeover of ailing HBOS to fears that a massive British High Street bank might have to be rescued -- even nationalised -- by the weekend.
We'll be across all that and more live from Birmingham and London at Noon on BBC2 today. We'll have Irwin Stelzer, one of America's most respected economists in Brum and the editor of the Financial Times, the much-respected Lionel Barber, in our London studio. We'll have the latest from the US and we have an interview with the Shadow Chief Secretary of the Treasury, Philip Hammond.
We have also asked to speak to a Government Treasury Minister. Among the many things we'll be talking to them about is whether the Brown government should mount a Bush-style bank bailout of its own, garnering bipartisan support from Tories and Lib Dems to do it. Perhaps if Westminster could do what Capitol Hill failed to do our political class might not be so "feckless" as America's after all.
As I write the London stock market is marking time, almost not quite sure what to do next after yesterday's precipitous falls. But bank stocks continue to weaken and we've not seen the end of the banking crisis by a long chalk. Late last night I learned that several mega-rich Brits had started withdrawing there millions from bank deposits to place them in safe-as-houses Treasury gilts, which earn almost no interest but run no risks. If that trend spreads then we will face a run on the banks -- and learn fast what an "economic Pearl Harbour" is in grim reality.
Away from global finance we'll be talking to Shadow Education secretary Michael Gove about his plans for a new wave of independent schools which will be free to the tax payer and compete with local state schools. Also today former Tory Party Chairman Norman Fowler on what the Tories still need to do to win - Lord Fowler has written a book on the subject full of special advice for the Tories. And has the banking meltdown created new opportunities for the Left?...as the foundations of capitalism are shaken to the roots Labour veteran Tony Benn will join us for a timely debate.
Join me live on BBC-2 at midday for our action packed show.
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This comment was removed because the moderators found it broke the House Rules.
And the Irish example is not about giving Confidence to the Banks but about Capable Government/Governance taking over Banking and Providing Leads and Needs for Feeding with Currency to Allow Spend in Shared Transparent Need 42 Drive Innovative Imaginative Funding Generation. A Reason to Print Money ..... as a Free AIdDriver.
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Andrew Neil is creating panic and fear with nonsense talk about runs on banks. Is there nobody in the studio with the sense and clout to tell him how irresponsible he is? 12.30 Tuesday
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Hi Andrew,
I was very dismayed at the evasive and devisive answer by Miss Cooper to you young lady's question in the studio. "Will this government guarantee all savings and deposits in our banks?"
I am left worries and scared for the future of our country when a Minister of the Crown cannot give a truthful answer.
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Re Michael Gove interview/speech.
Both Tories and Labour are heading for a big mistake on educational policies. 'City Academies' and 'Free Independent State Schools' are basically comprehensives with a few tweaks here and there, and they will ultimately fail for the same reasons.
Labour, with little dissent from Tories, are also introducing the diploma system, which is not only flawed in unnecessarily equating values of vastly differing curricula, but is also unworkable owing to its complexity and the need to spread the teaching load over clusters of local schools (if they exist).
And no one seems to have explained how City Academies fit into the diploma system - or is it to be a 'two tier' arrangement?
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#4 - BGarvie
"I am left worries and scared for the future of our country when a Minister of the Crown cannot give a truthful answer".
When was the last time you heard a truthful answer from a Minister of the Crown? Come to think of it, when did you last hear an answer which had anything to do with the question? Do tell!
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Andrew, Please don't be taken in by Michael Gove's disingenuous reply to you today that no one is making money out of privately run state education in Sweden. They are; and that's why the system has been so successful. For example:
Kunsskapskolan which runs 30 schools, teaching 10,000 students, makes a profit of 600 euros per student or 10% of the direct grant that they receive of circa 6000 euros per student.
In the UK they would receive an extra circa 2000 euros per student, boosting the profit margin to 2600 euros per student; some of which they could use to fund their own Building Schools for the future program, at no cost to the Treasury.
That's why they want to do 30 Academies: 40,000 students times 2600 euros per student is over 100m euros profit per annum, valuing the company at euros 1 billion.
And that's from only 40,000 of this country's 9m students.
Philanthropy? Don't make me laugh!
This is a serious business. Thank God... because it shows that, one day, we WILL educate ALL our kids properly.
The problem is our current government is subsidising foreign company's expansion into the UK by 'giving' them Academies, whilst squeezing the life out of would-be domestic suppliers.
This is a massive global market but none of our politicians seems to understand this or have the bottle to call a spade a spade:
Being allowed to make a profit is the key - sine qua non - catalyst.
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