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Written by Austin Mitchell
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14 July 2008 |
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Don’t let them kid you about “no recession here”, “stronger than the US” etc. All Balls. Both Ed and spherical.
This is a financial crisis. We’ve put all our eggs into the Financial Services basket and left it unregulated to attract foreign companies and funny money. So we’re more exposed.
The American productive base is strong and doing well through exports as the dollar goes down. We’ve knackered ours.
As the crisis develops we’ll suffer most. Q.E.D.
Because of the folly of the banks they’re over-extended and won’t lend. That and falling house prices mean builders can’t build and consumers won’t spend. Unemployment then increases. Tax receipts fall. Spending goes up and there are no jobs for the million disabled we’re forcing back into work. Down we go hands tightly clasped round each other’s necks. Brown says he’s Heathcliffe but winters were cold and miserable at Wuthering Heights.
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