Memorandum from Diane Ashby
I would like to comment as follows:
I am sure that most people agree with me when
I say that the crisis was not helped by the media reporting on
the issue. There was huge amounts of negative reporting from so
called `experts', these were the very people that could not forecast
the crash in the first place. Certainly my circle of friends and
colleagues all feel that there should be more control on media
reporting in such circumstances because they initially caused
the loss of confidence in the UK banking system and our system
Everyone must be aware that to deal with the
current economic crisis there has to be a pay day but once again
this should start from the Government down. In the boom years
this government has not proceeded with any caution, kept a "slush"
fund to cover financial problems and has in fact created a part
of the problem by tripling the amount of civil servants, and their
pensions etc, and have not been prudent with the taxpayers money.
We need a better "housekeeper" to run our economy so
that we can reduce the amount of tax we need to pay back this
Despite the bale out of the banks by the Goverment,
they have failed to ensure, by setting the correct conditions
of service, that small businesses and homeowners have access to
finance. This in itself has badly damaged the credibility of the
Government when they need to create confidence in Mr Browns strategy.
Most people feel that the managers of these banks have not felt
the pain that their customers have and this should be visible
to all. The budget was ineffective because it did not hit at the
heart of the problemIf this Government want us to start
to spend again they first need to stimulate the housing market
so that those that can or need to move are able to at affordable
rates and with at least 90% mortgages available, this will prevent
the enormous unemployment that will hit the construction industry
next year and will give people a better feel good factor than
2½% VAT reduction. The construction industry should be the
priority as the direct and indirect companies that reply on it
for survival would in turn create the spending again that we need.
When the mortgage industry starts to lend again,
hopefully in the new year, their rates should be attached to Libor
and not Base rate. This would make mortgage lending less insecure
and fairer for all. All other lending rates could also be attached
to Libor so that consumers, whether they be business or private,
would be better able to compare rates and control lending. Why
the FSA allowed students and young people with no income to have
access to credit cards, and young families to exceed their income
by offering mortgages of 125% of the value of their homes was
inexcusable and was obviously untenable and would eventually bring
us to the present dcrisis. Most of the middle class in my age
group knew this.
There should not be any protection for investors
that choose to invest in anything other than their own country.
We should be supporting our own economy and not look for investment
abroad that gives a small increase in interest because inevitably
the investor does not know how safe these countries are and as
Iceland shows us countries CAN be bankrupt.
Consumer confidence is the key to prosperity
in the UK but this is not helped by the continual negative reporting
by the media. Get the housing market going again and see the rapid