Our American cousins have scuppered a plan to bail out the American Economy. Apparently the Congress rejected the plan because they are up for re-election and the public don't see that Taxes should be used to bail out wall street and that the money should be spent on "main street".
Now whereas I agree we should be bailing out these greedy idiots on there golden hellos and goodbyes I think they are missing the point. If wall street goes so does their pensions, their savings and many small businesses will go as well. We don't need folksy sayings we need politcal leadership.
Of course the public on both sides of the pond are particularly stupid and greedy. Over here we've happily voted for Building Societies to demutualise as we got a windfall ( I do hope you sold up long ago!!).
Building Societies have not been affected by the fallout (the two bought by the Nationwide had a different problem) as they are not driven by investor greed. Isn't it amusing to see Lloyds TSB being held up as a paragon of virtue when until recently their investment strategy caused their share price to lag.
One chap on the radio today said that in real terms mortgages should be 7% and that is what some building societies are charging.
Whilst I would agree that the city needs regulating we do need to look in the mirror. We are all guilty of wanting it all immediately?
My strategy? Don't spend more than you can afford. I pay my credit card off in full each month, I've never had an overdraft oh and save for a rainy day, do it by monthly DD.