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From The Sunday Times

August 31, 2008

Labour in turmoil over Alistair Darling gaffe

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Isabel Oakeshott and David Smith

The government was plunged into turmoil yesterday as the chancellor admitted the full scale of Britain’s economic crisis.

Downing Street and the Treasury launched a desperate damage limitation exercise after Alistair Darling declared that Britain was facing “arguably the worst” slump in 60 years. As Treasury aides claimed that he had been misrepresented, Darling took to the airwaves to clarify his remarks.

However, instead of reassuring voters, the chancellor risked compounding the crisis by failing to modify his dire assessment. Darling insisted it was his duty to be “straight” with people. His warning that the slump will be “more profound and long-lasting than people thought” comes at the worst time for Gordon Brown as he struggles to shore up his leadership.

Hazel Blears, the communities secretary, moved to reassure voters, saying: “We know things are tough and understand that people are worried. But Britain’s economy is fundamentally strong.”

MPs and activists reacted with anger. Mark Todd, a Labour member of the Commons Treasury committee, said: “I must admit that by my own measurement this would be an exaggeration. The economy appears to be surviving rather better than he suggests. I was surprised by his language.”

One senior Labour figure, who was out canvassing voters, said: “This hardly gives activists a morale boost. We are out on the doorstep, trying to reassure people, at the same time as Darling is telling them we are all doomed.”

The comments threaten to overshadow the minor measures to help first-time housebuyers and those facing repossession that Brown is expected to announce this week. In a further blow to the prime minister, it has emerged that Stephen Carter, his high-profile strategist, is to move to a new role at Downing Street following a bitter turf war with Brown’s long-standing aides.

Darling himself hints at a rift at the heart of government, saying cabinet rivals are “actively trying” to do his job. His comments are seen at Westminster as a barely concealed attack on Ed Balls, Brown’s closest confidant.

Last night some Labour MPs were openly questioning the chancellor’s judgment, while others labelled his comments “astonishing” and accused him of jeopardising attempts to turn around Labour’s disastrous poll ratings.

It emerged that last week Yvette Cooper, Darling’s deputy, had circulated a memo on the economy to Labour spin doctors striking a markedly different tone from her boss.

The document urged special advisers to acknowledge conditions are “tough” but to emphasise that the picture is not as bleak as the recessions of the 1970s, early 1980s and 1990s, each of which saw a doubling of unemployment and prolonged economic misery.

Cooper’s briefing note chimes with the language used by other members of the cabinet recently when asked about the economy — suggesting that Darling’s grim prognosis is at odds with the message that his colleagues want to give.

Just days ago, Brown himself had insisted that the economy was “resilient”.

George Osborne, the shadow chancellor, said: “Who is telling the truth at the top of government? It’s not clear whether Alistair Darling meant to tell us the truth about the mess that 10 years of Labour have left our economy in, but he has certainly let the cat out of the bag.”

Darling made the comments in a magazine interview as Labour prepared for another difficult by-election in Brown’s backyard. Despite a majority of more than 10,000, the party is expected to lose Glenrothes to the Scottish National party.

Brown’s economic relaunch package, to be unveiled this week, will focus on the housing market and energy bills. A plan to help all families with an across-the-board winter fuel payment is thought to have been replaced by targeted help for those most at risk of so-called fuel poverty.

There will also be a range of measures in response to the housing crisis, including the acquisition of unsold properties for social housing, an expansion of shared equity schemes to help first-time buyers and a savings scheme to help the same group build up deposits more quickly.

One longer-term idea being examined by the Treasury is a scheme for state-backed mortgages. Brown is said to believe this could be the “big bang” the government needs to revive its ratings, but experts warn it would be too costly.

Only a few weeks ago he and Brown were saying we could withstand the credit crunch when many others were saying it was looking bad. Now at last he is starting to recognise the reality - only months too late and having spent all the money. Watch for massive borrowing increases! Time to ditch ID cards

Peter Jones, London,

Kenherts is wrong - not until recent years did borrowing have increase. The language of 'mending the roof while the sun shines' is hollow - what is meant is that public services - on which the rump of the electorate depend - should have been slashed. The Tories should admit as much if so.

David Marusza, Cardiff, UK

Amazing! Now I wait and see who Labour will blame for the financial fiasco they have dragged us into.

We have no money left to tide us over what could be very dire times. Who voted for this lot, certainly not me, I have a good memory and can still remember the 1970s. A general Election please.

bee, york,

Labour in turmoil over just about everything.

Neil, Gloucestershire, England

It is only the truth that is comming out but the panic Brown is now in is down to him. The so called good times were down to huge public borrowing and we have not been paying our way for many years now. Browns claim's to be a clever little boy are now exposed as lies because we really are bankrupt!.

Kenherts, hertford, Hertfordshire

surely they could give people mortgages through the state owned Northern Rock?! Is anyone else getting mortgages through them I wonder.

liz, weston super mare, uk

Darling is being truthful, it is going to get tough for US. Not
for those who work for the state, they will still get index-linked
pensions, guaranteed jobs, annual pay rises. But it is going
to be tough for the rest of us. Solution-Cut the size of the
state and cut taxes.

Roger, Weymouth, UK

you know you've reached a low point when the media condemns politicians for being honest!

Steve, London,

Rather than reassure the Nation by saying he will try to get us out of recession he is harping on about a recession to come & trying to scare us all who are trying to avoid it. He should go!

ian cheese, london, uk

I have never voted for this lot of incompetents - I was born in '48 and have lived through Harold Wilson and Jim Callaghan. I learned my lesson. Labour policies have shown they don't work, but over the last decade they've been allied to incompetence on a massive scale.

Marcher Baron, Welsh Marches,

I'm no friend of Labour but it isn't their fault. Energy supply is pushing the recession and is only made worse by diplomatic "bull in the China shop" fools like Milliband. China and india can now out compete Britain easily. We should go back to what we do best; slavery, war and Empire building.

keith bentham, wigan, uk

Did we or the Tories congratulate labour when the going was good? Can it not be that it is indeed a global phenomenon? Can it not be that we all were too greedy and too materialistic to worry about the consequences over the last 16 years of growth?

P Davis, Manchester,

Just watch China ( and Russia to a lesser extent ) pick off whats left of our assets over the coming years, with money we borrowed to buy their consumables. From sick man of Europe to sick man of the World!

R James, Clifton, UK

Is this Labours plan to fix obesity problem?

Everyone will be too broke to afford food!!!!

Hope you're all ready for the rates returning to 16%....

Ms Blofield, Kent,

So many experts here.
But none are The chancellor!

Xose, Galicia, España

Sums up UK politics when telling the truth is considered to be making a 'gaffe'..... And the headline implies that Labour were not in turmoil before Darling opened his mouth! Too easy to blame Gordon Brown, what about the rat who left the ship last summer?

Simon, Strasbourg, France

So prudence is dead. Are we surprised, when not so long ago, the Krazy Kinnock said "Why am I the first Kinnock to go to university in 1000 generations"? Well with maths like that in the Labour Party, we should have been warned! Incomepetance Rules OK.

David Vinter,, Louth, Lincs, , UK.

Weakening pound, high inflation and interest rates jumping. Maybe its time we joined the euro? Would it get any worse, would the EU allow us to join? Of course we won't join we are British and I doubt very much the tories could do any better. Sack the lot of them, waste of money as it is!

Craig , Glasgow, Lanarkshire

The panic is now plain for all to see and Darling was only stating the obvious. We are indeed in deep trouble for borrowing billions and creating a country not fit for purpose.
Those who work for a living are taxed into the ground and those retired are being killed by worry and council tax.

kenherts, Hertford, uk

So Darling's "gaffe" was to be honest with the people of Britain and the world, at the risk of harming the PM's political career? Only under New Labour...

I wish we had more gaffe-prone politicians. We used to call them "straight".

Tom Welsh, Basingstoke,

So Hazel Blears knows more than the Chancellor, thats good to know.

Steven Katirai, Ncl Upon tyne,

We`ve been in a recession since the middle of last year , but because the Government gets paid such high wages , they`re only now starting to notice it .
When you`ve been on the dole , you notice these things .

Jim, Sidcup,

Why the surprise? All Labour administrations last as long as it takes them to run out of other peoples' money. Out Supreme Leader is no different except the he has no other person to blame. Mr "Clunking Fist" - my rear end

Easby, Sheffield, England

Wonderful to see the dead nulabour project finally imploding in upon itself.
Would be even better news if Loser did what he must know is the ony correct thing to do now which is to call that election he slimed away from last year.

roger, brighton,

Brown years of "prudence" are now being shown for the shallow grasp of economics they were.
Blaming our plight on world events isn't good enough. Stuff always happens, and lack of preparation is why we're in this mess
It will be entertaining to watch the cabinet start to distance themselves from him

Colin Alcars, Petersfield, Uk

Thatcher was the first guest into No10 after Blair's election and Brown's elevation. All they had eyes for was the unregulated non-unionised City and they left it to its own devices while Brown taxed and wasted on a PC surveillance state. We've no industrial base and nothing left in the kitty.

ian, innsbruck, austria

Remember it was the Tories who SOLD British Patroleum,
British Gas,The Electricity Board and the Water Board to private sector and they also deregulated the buses.

The Profits went back into the treasurey,but not now.

A lot of the problems we face are from the previouse TORY GOVENMENT.

Norman Fullard, Newcastle-upon-Tyne, England

It seems to me that Darling feels that he's been given a 'hospital pass' to borrow rugby terminology. The economic problems are not of his making but in large part are those of his predecessor and current PM Gordon Brown. Perhaps Darling feels honesty is the only viable survival policy he has.

Rob, London,

The utter range and depth of the incompetence shown over the last 11 years is absolutely stunning. And I doubt they have finished yet.

Mike, Birmingham, UK

thia mess might discourage any more people falling of the boats and lorries and instead stay in their own backyard

jim, edinburgh,

State-backed mortgages? Oh my God , we are definitely doomed.

Brian Ralphs, Leicester, England

Didn't he mean to say 16 years (since 1992)? The "worst slump in 60 years" is a complete nonsense!!!

Leaves one with very little faith that he has even begun to comprehend the problem, let alone start to put together a solution.

Mike, Harlow,

Terrifying that these incompetents are running our countries.

kate, edinburgh, scotland

friends and family of the government ministers must follow Carol Thatcher when it has become obvious dementia has crossed party lines

john, chelmsford,

"Funny how the USA is recovering..."

Don't let one set of favourable economic news, GDP growth, lead you to believe that the US is now reached bottom.

John, London,

Well done Alistair, the truth has finally been spoken by a Labor minister, this credit crunch is turning in to a global train crash and the only way to survive this is to recognize the danger now and act fast.
Time to cut public spending to the bone to avoid a sterling collapse and hyper inflation..

Peter , Rushden, UK

Government savings? Easy! Stop funding the Civil Service Pensions with our taxes and throw them to the wolves of private pensions. Cut the inordinate number of consultants, advisers and various hangers- on, they didn't help, did they? Wind up all PFI's. Leave Iraq. Loadsamoney!

Gerry Holland, Reading, UK

Debby,

Absolutely right. The Labour party's historical record is dreadful. Almost always slowing economic growth, increasing inflation and reducing employment. Of course, due allowance has to be made for their 'redefinition' of some of these measures (inflation, unemployment) to paper over cracks.

Steve, Cambridge,

Gordon - Britain is facing "arguably the worst" slump in 60 years.

Yet, you are still intent on spending countless BILLIONS on ID Cards, ContactPoint, the NHS Spine and a vast Data Retention Silo.

Please, just give some kind of sign to show us that you actually know what you're doing.

Brian Drury, London Colney, England

Wow ... these comments are ludicrous ... everyone picks on one point, and misses the big picture ... I think Britain deserves what it gets considering how thick their electorate are.

tomstevens, London, UK

Poodle turned Rotweiller! He's done a Geoffrey Howe. Didn't he ought to be saying how he intends to get the country out of the mess though? After eleven years of waste and mismanagement whose fault is it anyway ...???

DMT, Albi, France

Where will Labour get the money to pay for its initiatives to help the housing market and the fuel crisis?
It will borrow it from the taxes it expects to receive from our future earnings. Oh, I forget, we're in a recession, what future earnings.

Paul Gooch, Lincoln, UK

I've read through these comments and there's an awful lot of blame being thrown around. But how many of you stupidly voted for Nu Labour - TWICE?!?! I have unashamedly NEVER voted for Labour, the fact is they always end up making the same mistakes, old or new, they are ever incompetent.

Debby, London,

Dare I say Great Britain needs an English leader to walk us through these 'tough times' and not a small minded introvert who has surrounded himself with weak yes people. The labour end is nigh...and hopefully for a very long time.

Eddie, London,

Two and three years ago instead of reining the economy in, the then Chancellor allowed it to expand and assured us that the feel good factor was genuine.

Strangely enough that same Chancellor became unopposed the Prime Minister, a price worth paying for Gordon, but not for us!

Chris Wigley, Handforth, UK

The answer to GB troubles is to simple cut taxes for everyone and generate a good feeling of wealth for both individuals and business. This money would then be spend by people and companies and GB would then recieve it back through increasted employment and Vat, or beg Ken Clarke to to switch sides.

Dave, mold, UK

So will those who haven't benefited in the slightest from the 'boom', have to stop eating in the 'bust'? What do you suggest Darling, reach for the credit cards again? Did Labour intend for people to drown in debt I wonder? Oh that's right....they don't care.

judy, Liverpool, England

Some much for Gordon Brown's economic prudence! It's high time he had the guts to throw in the towel, and be honest enough to own up to his mis-management. He should go NOW, before any more damage is done. If USA is going to be independant of the Middle East for Oil in ten years what happens to us

Roger Stubbs, Shirley, Solihull, W.Mids UK

So after 10 years of Labour's 'management' - their sale of our gold, its 5bn p/a raid on our pensions, surrendering our EU rebate etc. - the economy's in the same state as it was when we lay in ruins, nearly destroyed by the Third Reich.

That really does indicate the most spectacular incompetence.

Mike, Brighton, England

Surely this mess is all the fault of William Pitt the younger. It is a source of much mirth in my household reading people's letters still blaming Thatcher after 11 years in power. Let's face it, Labour simply are not up to it.

Roger, Surrey.,

Brown’s economic relaunch package

Yet another relaunch from Brown who promised the end of 'spin'.

It does look like Nu Labour are beaten their record in the 70's or ruining the economy if Darling is correct. I really hope the UK is not in this state - but his comments won't help.

Andrew, Melbourne, Oz

I can't believe any Chancellor with even half a brain would make a statement like that. The person responsible for the British economy basically just told companies to lay off staff and consumers to stay at home and eat baked beans. Who needs policy when the Chancellor is an oaf?

Seb M, Melbourne, Australia

Failure Brown has got only one knee jerk reaction to the ghastly economic news - every time it is 'spend some more taxpayers' money and increase the debt'. He is thrashing around like a drowning man. He made a great noise about 'being vigilant ' over the economy. What does that mean? Go, and go now.

Charles Vintcent, Montreuil, France

If your government buys houses and tenants them, are they not helping the existing home owners by limiting the collapse of the market and there-by keeping affordable housing out of the pocket of first home buyers.

It seems an expensive feel good policy at the cost of the poor and middle class.

aarron, Auckland, NZ

Funny how the USA is recovering and we continue the downward slide into Recession........ wonderful economic management?

Paul, Leicester,

Only 1 Labourite has the guts to stand up and say how it really is with the economy. The rest of the yellow-bellied Labourites are protecting their smug positions.

louis, liverpool, UK

This is all very simple over taxation, far greater regulation on buisness thanks to labour.

Therefore less pennies in peoples pockets leading to a lower exchange of goods and services and a lessening standard of living. Not to mention higher commoditie prices on a country that imports such!

sam, haverfordwest , uk

Selling off the gold reserves, big hole in the pension fund, manufacturing moving abroad, companies making losses and redundancies meaning less tax revenue for the treasury and sterling starting to weaken against the major currencies. Do the cabinet think the public are stupid? Game over

keith, Wirral,

Well done to Alistair Darling for telling us how it really is. My respect for him has shot up tremendously. Shame his colleagues can't follow his footsteps and start being honest and frank to the electorate.

Joseph, Norwich, UK

No wonder Britain IS SKINT, Gordon Brown sold 400 tonnes of our real wealth, GOLD, at the BOTTOM of the market in 2001/2002 for $250.00 an ounce.

Having recently reached $1030.00 an ounce, and surely SOON to go much, much, higher due to spiralling World inflation.

What a WISE move that was.

Andrew, Harrogate, England

If our glorious leader was the sole architect of the "solid economic performance of The UK" during his time as Chancellor , when the world was booming. How is it that he is not the sole architect of the economic misery we face today, and "its the world economy stupid"

I think we should be told

Karl, Newcastle Upon Tyne,

I'm convinced Labour DO NOT want an election win as they have no inkling of how to sort out the economic mess, much of which was created by the 'best Chancellor of modern times'. 'No more boom and bust... economy is sound... best qualified to see us through difficult times'. I don't think so!

R.B., Leicester,

I do wish that nice Tony Blair was still in power ... so he could take his share of the blame. Instead he's waltzed off into the sunset to fill his pockets and left Brown to take all the flak.

Chris K, Cheltenham, UK

Kevin Sweeney, Edinburgh, UK
Same old, same old. Labour have had 11 years of government, the screw it up as they always do and they then blame somebody else as they always do. A universal constant.

John, Reading, uk

Just for once Darling told the truth & it now Labour want to shoot the messenger. Too late kiddos, we already knew the economy is a basket-case thanks to Gordon's mis-management. 11 yrs of over-taxing, over-spending, under-regulation of the FSA & daft NuLabour social engineering has done the job.

Donna Walker, Effingham, England

Oh dear doesn't a service based economy work? Surprise surprise!!
Having either scrapped or sold off the engine (Design & Manufacture), the economy won't drive fwd.

Dave, Chorley,

sweeney,

it is capitalism that builds the house you live in creates the materials that build it, the food you eat, the clothes you wear, the car you drive, the booze u drink, the wealth that pays your pension or dole, the drugs that cure illness and the medical devices that help us.. etc etc

BD MATHERS, birmingham, UK

From all this hoopla one telling insight emerges: Politicians are not supposed to tell the truth, I bet Mr Darling doesn't believe in tooth fairies.

anthony, london, england

Labour has ridden the profits of a highly leveraged finance industry. The bozos did not understand this. Now the profits have evaporated and so have government revenues. Banks can stop paying bonuses. What can Labour govts do? They have 8m dependents to support!

Anthony, Kew, UK

It's all Clement Atlee's fault...

C. Heathcote, Tonbridge,

The mismanagement of the economy stems from Margaret Thatcher and Ronald Reagan's 'liberalisation'
Kevin Sweeney, Edinburgh, UK

Wrong!
..and when will you nu lab apologists stop blaming Thatcher for everything or is it just the easy way out when there is no other plausible (spin) explanation?

DaveC, Bath, UK

Sounds to me like he's woken up, smelt the coffee and realised that the crisis of faith is so great that a Labour administration can not steer this country in the right direction.

Ned Gibbons, Stroud, England

The mismanagement of the economy also stems from the governments inability to manage its books. If off balance sheet items and public sector pensions liabilities are included we have a worse situation than Italy. They're inept and this country needs proper leadership immediately. God help us.

Henry Northcroft, London,

Forgive me, but I'm still confused about the 'in 60 years' reference. Did he forget what decade he was part of and mean the 1930s, or did he really mean 1948?

In which case we really are in trouble. Don't forget to carry your meat coupons next time you visit Tesco.

We are in a parallel universe!

Jono, Carmarthen, UK

The situation is bleak.

The most common question asked to my fellow business advisors has become "where can we get money from now that banks have stopped lending ?". We're advising them now to move accounts from the High Street names because without cash their survival is measured in hours.

Alan, Rushden, UK

Governments never learn. Especially Socialist ones. Gordon Brown has spent every penny that he received during the good years, now we will all pay the price for his profligacy. Latest figures from the States show they are weathering this economic down turn far better than we are. I wonder why?

Richard Lord, Llantwit Major, Vale of Glamorgan

The cat truly is out of the bag, however this mismanagement of the economy should have been spotted ages ago. An example being the government response of 'why don't we just stop building houses' to try and keep house prices increasing and the pretense of a buoyant economy.

Tom, Epsom,

If Hazel Blears and Mark Todd are so sure abut UK economy being fundamentally strong and surviving, they should stand up and pick up the challenge.. as the next Chancellor.

Vince, Singapore, Singapore

If nu-lab still insist in blaming Maggie for the current economic situation 18 years on, can we assume they are acknowledging their inability to have managed their way out of a long foreseen situation over the last 11 years?

Nick, Potters Bar, UK

Hazel Blears 'reassuring the public'? She should have got a job handing out lifejackets on the Titanic.

Roger, Surrey.,

"But Britain’s economy is fundamentally strong.”

From a fuzzy mind - Bleary Hazel is confused as usual.

Ian, Solihull, UK

Shared ownership is a joke, house prices are a joke, trying to prop them up is in few peoples interest. Why should tax payers money be used to keep house prices unaffordable when high prices are responsible for this mess?

Simon, Chester,

It is obvious Brown has been living on the back of a massive credit expansion whilst telling everyone he has banished boom & bust.

Did he believe what he was saying?
Was he deluded?
Did he know the chickens would come home to roost?
Could a monkey have done his job for the past "x" years?

Timothy, West Midlands, UK

I could hardly see the frank assessment of our economy by the Chancellor is an 'exageration'. The fact is we are a nation that lives on debt, most households have little to no savings, neither is the state. I would to see the government introduce law to cap the % energy firms can raise their price

dominik, london, uk

I thought Gordon had told us he had abolished boom and bust?

Nigel Wroe, Doncaster, UK

K Sweeney - Thatcher? Reagan? Have you been asleep for 25 years? You must be joking. By the way, it was G Brown and labour who reduced the cash balances banks need to hold versus loans. This was the real cause of over lending and has seriously weakened UK banks. Things have moved on in 25 years

KR, Cap Ferrat, FRANCE

Just who are Labour trying to fool. No Labour minister has ever had a real job which involves maintaining a balance sheet and delivering service to a customer. Their only solution is to always raise tax, sit on their moral high horse passing nonsensical bureaucratic laws which serve no purpose

steve tea, manchester, cheshire

And 1979 was what?
I am old enough to remember that year, I was a labour voter till then. Labour (old this time) was in power and had given into strikers, raised taxation.
Thatcher came to power and dealt with the union problem, look at now.
NuLabour in power needs Union cash, whats new?
Nothing.

Howard , Basildon, England

Yvette Cooper, you say, asked advisers 'to emphasise that the picture is not as bleak as the recessions of the 1970s, early 1980s and 1990s, ..'

Well my business colleagues and friends are of the view this is very much worse than those periods; Darling is right.

John Jenkins, York,

The last eleven years of Labour mis-rule have been a total catastrophe. From the illegal Iraq War to the inept management of the economy, the Bliar/McBroon legacy is an utter disaster.

It's all coming home to roost and the Labour government (so-called ) is starting to disintegrate before our eyes

Rick, London, England

UK prosperity has been based entirely on rising house prices and its no surprise that the UK is now in big trouble. House prices have been decreasing in the US for over two years ... so now its the UK's turn. Brace yourselves .... its going to get much worse as the UK is two years behind us!

Clive Duerden, Houston, USA

Well it just to show how Darling / Browne have damaged economy with allowing the gas / electric /water and not forget their greed the oil companies quick to put their prices up at the pumps & non to quick to drop them,
Darling should step down and the government should make their accounts public?

noel j, andover, Hampshire

No, the package won't be enough. But thats the idea
isn't it, to save finance, public sector and the wider
economy........

Let housing rot.....

100b vrs our assets.

Its a better fraction.

m walker, Nr Bromsgrove, worcs

You are joking the Labour Party are not in trouble again.
I think I will sleep in peace knowing that everything is as it should be. If Cameron gets in it'll be more of the same. So listern everybody Cameron or Brown you will still get stitched up.
You'll pay your money and take your choice!

Sheila, Robertsbridge, East Sussex

Tom Littler,

Read 'Atlas Shrugged' by Ayn Rand for the (frighteningly) prophetic novelisation of Nu-Labour's decline and fall!

Bob, Manchester,

I would rather hear the "Truth" from cabinet ministers rather than this obvious "Spin" , however unpalatable it may be. When will they learn? This is why politicians are not trusted. The UK economy is struggling due to global factors. There is no need for the Government to pretend otherwise

Steve Chapman, Liverpool, UK

The mismanagement of the economcy stems from Brown and Darling's ineptness in regulation, partiuclarly of the financial services industry. The FSA, which they created, and which they chose one of their cronies to chair, has been a particularly inept, complacement and incompetent regulator.

PSJ, London,

Read the book "The Crunch" by Alex Brummer available from Waterstones. New Labour created the FSA, not Thatcher or Reagan, which in partnership with the Bank of England and the Treasury, failed to act proactively to mitigate greed and lemming like behaviour in money markets. For Thatcher try Brown

Tom Littler, Chester, UK

The mismanagement of the economy is down to Gordon Brown's stewardship from 1997.

To sum it all up in one phrase, interest rates were too low for too long.

There are other contributory factors, but this is the overriding one that meant our debt and housing bubble blew out of control.

Henry, London,

Oh my Darling, Oh my Darling,
Oh my Darling, Labour's crime
Was to waste a wealth of taxes,
Now the Party's out of time!

Pal Freeman, London, England

Are you still blaming Thatcher Kev, getting on for 20 years since she left the job? I atually agree with some of what you say, but be fair.Our economy for the lat 10 years has been based on lending and the false housing market. Theres nothing wrong with lending money,as long as they pay it back....

Danny Wright, Upwell, Cambridgeshire

Kevin,

Are you trying to pin this credit crunch and housing market crash on the Tories?

Don't you think it is time to get off the Thatcher hate bandwagon?

Andy, Reading,

Interesting, as Broon said he had ended Boom and Bust!

Darrin, Egham, UK

New Labour has never missed a chance to get a headline to draw attention. The US Fed is showing optimism with respect to the ceonomy there, and assuming the UK crisis lags the US by a year, there's a good reason to say it's very bad now. Just in time to call an election at the 1st sign of recovery.

Jean Debuy, Paris, France

The mismanagement of the economy stems from Margaret Thatcher and Ronald Reagan's 'liberalisation' (read slackening of rules) of legislation surrounding finance and banking (among other things).

Essentially, we've been exposed to the whims of Big Capital, and cycles of Boom and Bust.

Kevin Sweeney, Edinburgh, UK