Wednesday 8 October 2008

Immediate Reaction to Government Bans Bail Out Proposals.

This is the press release I have put out this morning in response to the Chancellor's announcement of the Government's bank bail out proposals.

"Government Plan Nationalises Losses"

"Taxpayers to pay for Bankers' Greed"

"Fear Too Little Too Late"

Commenting on the Government's Banks bail out, John McDonnell MP, Chair of the Left Economic Advisory Panel, said "Without full nationalisation the Government is effectively nationalising the Banks losses and privatising the profits so that taxpayers will now pay for this crisis caused by the greed of the bankers. I fear that it will be too little too late. Without full nationalisation at least we need very detailed and specific conditions on any taxpayers support."

See also the Guardian's letters page where we have published a letter setting out a summary of a people's programme for the crisis rather than a bankers' bail out.

Now that it is accepted that the British economy is in recession today there must be pressure on the Bank of England for at least a 1% cut in interest rates. Without this the recession will be longer and deeper, with the risk of serious deflation and some even talk about a depression.

Already job losses are mounting and repossessions escalating. Our people are beginning to suffer. On Monday (13th October) we have convened a meeting at the House of Commons at 7.30pm in Committee Room 10 to plan the Labour movements strategy to confront the recession. We need to mobilise to protect jobs, homes, and living standards. Come along.