Has spending in the UK slowed?

Question

Ok I've noticed my shares are down ALOT!, and am not talking penny shares am talking banking shares, Also I work in retail where quiet very quiet and every tradesman i ask just the same, This is a real bad sign for the UK, Why can't we have a goverment which do there job

Answer 1

Popular misconception that the Government can have any sort of positive effect .. typically Government intervention always results in things getting worse ..

Now if you had said "why can't the Bank of England do their job", I would agree with you .. without doubt they are 100% responsible for the collapse of confidence, tightness of credit and subsequent run on banking shares in UK ...

You can even say exactly how they caused the collapse .. it was by waiting 3 days for Northern Rock to go to the wall .. if they had stepped in and guaranteed 100% of retail deposits in NR as soon as the first news reports of NR's loans from BoE started to come out, they would have effectively guaranteed public depositors in the entire UK banking industry.

By waiting 3 days, all the other banks now know that (1) if the borrow money from BoE their retail investors will desert them in droves and (2) they will be allowed to collapse before BoE does anything to help ... and thus they refuse to borrow from BoE and refuse do anything that might increase their liabilities (like lend to each other) ..