Monday, September 17

Lost Confidence

On this blog we have made the point many times that our politicians and corporate leaders have squandered our trust - they are no longer believed by the public since they have lied and spun the truth far too often.
The long queues outside the Northern Rock's branches depressingly confirm that the people of our country have lost confidence in the so called good and great.
Paradoxically the recent statements by both The Chancellor of the Exchequer, the Chief Executive of Northern Rock and indeed the Chairman of the Financial Services Authority that Northern Rock investors have no cause for concern are as any expert in economics or commerce will confirm accurate. Yet the past few days run on the Bank in which over £2.5 billion pounds has been withdrawn will probably now cease to exist in 12 months, a buy-out clearly will now be forth coming. The most likely buyer being HSBC who have currently only a very small slice of the UK mortgage market.

Potential corporate raiders received a boost late on Sunday evening when the Bank of England pledged to keep the emergency loan facility in place after a sale.

At the end of the day the run on the Northern Rock Bank (or as we refer to it as the 'run on the rock') has been caused without doubt by a complete and utter lack of trust in our corporate and political leaders. We are witnessing on our high streets a very un-British phenomena to which the cure is simple but long term - a return of transparent credible political leadership.

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