Thursday, March 13, 2008
Darling's Ostrich Budget
Yesterday's budget, presented by Alistair Darling, aside from being tedious and predictable betrayed the fact that Darling and the government are burying their heads in the sand over the meltdown in the world's financial markets.
Stock markets across Europe and Asia are falling this morning as the dollar slumped to new lows, and fears grow that the US Federal Reserve's $280BN liquidity bailout will fail to stop a market meltdown and a US recession.
The Carlyle Capital Corporation (CCC) admitted today that it is likely to be liquidated, after failing to reach an agreement with its lenders. The company defaulted on $16BN of debt, and bankers are seizing its assets.
Several hedge funds with assets of more than $4BN are on the brink of collapse, or had halted withdrawals.
Meanwhile Darling tinkers with the tax on booze and fags, and worries about plastic bags.