The failure of Congress to support the Bush bail out plan has put even more pressure on our own Government to take swift and decisive action otherwise the prospects for the British economy are a much deeper and longer recession. If the market fails the only solution is Government intervention. We can't wait much longer.
What I am amazed at is the lack of comment and reaction from across the Labour Party other than from us at LEAP (The Left Economic Advisory Panel). We may not receive the coverage of our views in the mainstream media but at least we are using whatever opprtunity we can to present an alternative analysis and policy proposals.
That is why I put out this further press release about the lack of decisive action by Government.
US Bail Out Failure Demands Decisive Action From Gordon Brown
Labour MP John McDonnell, chair of the Left Economic Advisory Panel, has called for decisive action from Gordon Brown in face of failure of US bail out plan.
John said ”After Bradford and Bingley and the failure of the US bail out plan we are facing further collapses and a long and deep recession. Simply addressing this crisis in Britain on a case by case basis means that the economy is staggering from one crisis to another into recession. The root cause of this crisis is the Government’s policy of allowing the housing market for over a decade to be used for profiteering speculation rather than to provide homes. The resultant crisis of confidence in the financial institutions has created a self fulfilling crisis of liquidity. Gordon Brown must take decisive action before it is too late. I am calling upon him to bring the home loans industry under pubic ownership and control and override the Bank of England Advisory Committee to cut interest rates decisively.”