Rogue Chancellor
Fraser Nelson 6:11pm
Alistair Darling was brought on to be a grey, unremarkable chancellor. He's fast turning into the Nick Leeson of British politics. Leeson, you will remember, was the rogue trader who played double or quits - hoping his small mistake would go away if he gambled even more. But he ended up sinking Barings.
Darling should have allowed Northern Rock to be flogged to Lloyds when he had the chance. This small mistake led to a £30bn loan. Today, he's doubled it to £60bn. And remember, he cannot guarantee the safe return of this cash - your money.
The City is awash with rumours of the utter chaos going on behind the scenes. Of how Goldmans could not believe the lack of urgency at the Treasury, about how the Bank of England's representative needed to have explained to him the debt market which got Northern Rock into such a mess. Never has the phrase "Old Lady of Threadneedle Street" been more appropriate. And as for Darling, the phrase which best sums him up is "rogue chancellor". Except this time, it's not Barings' money. It is yours.
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Comments
Ed
December 18th, 2007 7:18pmSurely there must be a law somewhere that allows for the instant dismissal of this wholly incompetent government? My grandchildren, yet to be born, will be paying for this mess.
Lee Jakeman
December 18th, 2007 8:22pmEd - Sorry. No such law exists. The lawmakers (same crowd) have taken care of that!
Austin Barry
December 18th, 2007 8:55pmIt is of course entirely possible that Darling is completely nuts. I mean if you were confronted with a mournful looking panda staring back at you every morning as you shave, wouldn't your sanity begin to erode?
Seasurfer1
December 18th, 2007 11:28pmReal Banking will soon be overtaken by bad old socialist legislative meddling in financial and banking affairs. Brown actually does not know which way to turn as the UKs Finances are in a parlous state. He may wish to start dabbling in the Futures market. Any trader wanting to play?
martin head
December 19th, 2007 2:38amWhat on earth is wrong with you people? Fraser, I'm presuming that unlike you I've actually met both Alistair Darling and Nick Leeson and you must know you're talking complete nonsense. Mr Leeson is a very special person indeed. I don't mind people taking contrary views on policies and actions but this is just bile dressed up as commentary. Just to prove nothing at all Seasurfer1 actually has a good point, the UKs finances are quite parlous. But Alistair Darling is no more a nutter than John Redwood is, but just watch the papers light up on Redwood’s latest comments. You’re supposed to be the smart people, the ones with the financial nous and experience, but what you get commenting on your stories is Ed and Lee. Why on earth do you think this is the best that you can do?
Max Kaye
December 19th, 2007 10:07amI think it was Vincent Cable who summed it up yesterday as "The worst of all possible worlds." (Off topic - with Dancing Vince giving such a great performance as caretaker leader, I bet the Lib Dems are upset at having to settle for second best. But then, they are surely used to it by now).
Ed
December 19th, 2007 12:53pmMartin, actually I posted elsewhere on the Speccy blog as to why this government is incompetent. It comes down to the misshapen tripartite committee (Treasury, BoE and FSA) and their indecision for the BoE to widen the repo discount window which would have prevented the Northern Rock bank run, as well as substantially mitigating the worst impact of the liquidity squeeze. And then the non-decision regarding the proposed LloydsTSB rescue. Golden opportunities missed, all pointing to a wholly incompetent government.
Tiberius
December 19th, 2007 2:05pmGreat characterization, Austin.
Fraser Nelson
December 19th, 2007 2:22pmMartin, you misread me if you think I was just saying "Darling's a loser, like Leeson". I was saying that Darling is not grey but taking a billion-pound gamble, like Lesson, and is playing double or quits to try cover up his original mistake, like Leeson. It's the technique and potential cost which is analogous. I’m sure Lesson's a perfectly nice chap, and know that Darling is a nice chap.
Daniel24
December 20th, 2007 3:47pmMartin Head, get a grip! You have totally taken this piece the wrong way, it was not attacking Darling personally but his performance as chancellor and the analogy with Leeson in taking big financial risks, anyway its not just Nelson highlighting the rumours of chaos and mishandling behind the scenes, as other papers have run stories echoing this in the last few days. Me thinks you need to get back to drinking your koolaid!