Tag Archives: Economics

Oh, the shame

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It seems that I have been channelling the Archbishop of Canterbury…..

(Or vice versa.) (If you can channel living people.) (I’m sorry, I don’t actually know the channelling rules.)

Williams said the credit crunch had been a “reality check” in a climate of unsustainable greed, and it should be used to provoke a fundamental rethink of the pursuit of wealth. It demonstrated that the country had been “going in the wrong direction” by relying on financial speculation rather than “making things”, he said.
It was “a reminder that what I think some people have called fairy gold is just that – that sooner or later you have to ask: ‘What are we making or what are we assembling or accumulating wealth for?’.” (from the Guardian)

Unsustainable greed, relying on financial speculation instead of making things, not believing in fairy gold. I spout this stuff every day.

When you find yourself agreeing completely with the Archbishop, I suppose it must be Christmas.

Have your hate

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I suspect the Twat-O-Tron has been at work on the BBC’s Have Your Say (HYS) pages once more. One of todays “discussion” topics is Should immigration be cut because of the downturn? As you can imagine, this sort of thing really does bring the spiteful, uneducated, masses out of the dark, hate-filled world they normally hide in.

As always, a second-rate politician has found a topic they can grand-stand on, which appeals to the base instincts of the public:

The economic downturn will mean fewer people from outside the European Union are allowed to live and work in Britain, the UK Immigration Minister Phil Woolas has suggested.
Mr Woolas told the Times newspaper that in times of economic difficulty, racial stereotyping gets stronger so jobs should go primarily to those who live here.
He said when people were losing their jobs, immigration had become an extremely thorny issue.
Mr Woolas said the government would not allow the population to go up to 70 million.

I doubt more than a handful of people outside his constituency had heard of Mr Woolas before this, but he has achieved his goal. His “inspiring” comments have drawn quite a bit of attention to him.

Predictably, at the time of writing anyway, the weight of comments on HYS is in support of this madness. It seems that people have an arbitrary idea of what means someone is “British” enough to be here. On its own, this is bizarre enough but it seems there is a new version of logic available to these people. Each of these seem to fall into a theme.

The first is made up from people who are slightly misled:

UK Government must respond to the changing economic situation by making drastic cuts in the non EU workers coming to work and live in UK.With recession knocking on our doors resulting in job losses and increase in unemployment it will be folley to allow the immigration at the present level. Immigration must be restricted to needed skilled workers only. [By the miracle of irony, this comment was from “Mohan Lal Ramchandani, Westhoughton, United Kingdom”]

Non-EU migrant workers are, despite scare-mongering stories, few and far between in the UK. There are already regulations in place to restrict this migration to skilled workers, which is why the non-EU migrants tend to be in highly specialised professions (Doctors for example). Now, as with all things, the jobs are open to everyone – if British doctors are either unable to take the job, or unwilling to work at the market rate, then why on Odin’s Earth shouldn’t non-EU immigrants do the work?

Worryingly for non-xenophobic lunatics, the jobs lost in the recession are always certainly going to hit “British” workers before they hit migrants; the migrants are already paid peanuts. This will provide an arsenal of madness for the xenophobes and it is worrying that the Immigration Minister didn’t think before he spoke. Well done HM Government.

The next category is the weird, irrelevant, analogy:

At last. Well done for your comments hear. This country could easily be swamped by immigration. The world population is spiralling out of control.
In the Ciaro area for example, there are more than 1.5 million every year, and there is no way enough jobs can be created, despite Egypt’s economic growth.
Rubbish just piles up in the streets, alongside dead animals and roaming packs of unempoyed young men. A worrying vision for a future UK city? [Phil, Enfield]

Typo’s aside, this madness. I have been Cairo and it looked very different to that. However, even if “Phil” was 100% accurate it carries a huge so what. London is not Cairo. The differences are immense, even if UK councils have gone down the road of less and less frequent rubbish collection…

The inevitable empty rant also has its place:

I just cant express my anger at the way in which New Labour have allowed immigration to run riot over the last 11 years in only 500 words.
To announce a cap on immigration now, after the NHS and almost every other public body in the country have been saying for years that they cant cope with the current influx beggars belief, and I just dont believe that they will have the strength to stand up to the namby pamby lefties who put the needs of foreigners before those of brits.
Shut the door today [Downingstreet Mole, Leominster, United Kingdom]

Basically, this is someone who is just plain angry. They don’t really have anything to say and there is no coherent argument. They just wanted to rant about leftwingers. Well done them. Oddly, and sadly for the tabloids, most immigrant workers don’t put pressure on the NHS. People who are earning less than minimum wage aren’t really in a position to take a few days off sick. People who are here, living 30 to a house, dont make a huge dent in the NHS dentistry budget. Yes, a small percentage do use the health service but most don’t. They cant afford to.

Conspiracy theorists have to get their oar in:

please remember we live on an island, and not a very big island at that.
tony blairs government idea of a multicultral country is and was flawed from the outset forgetting history and the fact this little island is not big enough for too many people to live on safely.
the only reason the government invited so many in was to gain supportand ultimately engineer staying in power longer, ignoring indiginous minorities infavour of incoming peoples.
it has to stop now.[delminister, truro, United Kingdom]

Well, this is odd. There are quite a few which have made this claim (or a variation thereof). It strikes me as odd, because Labour’s managed to get in power while a Conservative government held the seat. So, did Labour have a secret load of migrants to vote for them or is this just nonsense? Equally weird, migrants dont get to vote… Truly, the world of HYS is bizarre.

Staying with the madness we get this:

Everyone I speak to from the UK complains about immigration.
The Government ignores what the population of the UK wants. A stop to it.
For this reason alone, regardless of any supposed economic benefits, it should be stopped.[Will de Beest, Spain]

(Spain! Ha). Basically this implies that the government shouldn’t mind about the benefits or costs of a policy, but should just do what ever the subset of the population this nutcase talks to want. Wow. Wouldn’t that lead to a Utopia.

“What are you going to say to the employer who is desperate to fill a job, but can’t find anyone suitable in the European economic area?”
Keith Best, chief executive, Immigration Advisory Service
Is this for real? – is this guy seriously suggesting that there are jobs out there that can not be filled by anyone from within the EU, let alone this country?
If that is the case then maybe the employer should take his business elsewhere.[Graham Duncan, United Kingdom]

Erm, yes. That is what Keith Best is saying, If the employer can’t find some one from the EU he takes his business elsewhere and employs from outside the EU. It is a shame that (on HYS) British-loving seems to mean the same as idiot. This is a milder version where a poor sense of history has conspired to create the idiocy:

We were once a proud nation at peace with itself and common sense lived here it was so good everyone else wanted to live here.
Our grandfathers had worked hard and sacrificed much to make this county Great but immigration reversed all that. Broke, and under shortsighted leadership we have given away more than we could afford.
Should immigration be cut YES, in all honesty it should have been stopped years ago. [Tom J-P[, Byfleet]

There isn’t really all that much I can say to that, other than no.

The comments continue to be a mix of racist, mad or just daft, although having just refreshed them I see there is some balance there now. The oddest part is that people are in favour of immigration laws (which will only affect non-EU migrants) because they want to reduce the number of EU migrants. It really is that stupid.

Worryingly (for the UK) it does show how stupid our electorate is, and how easily they can be misdirected by a slightly cunning politician. I really do think that democracy doesn’t work – most people are too thick.

Ironically, if we did institute a system where people who could barely read or write English were deported, we’d be stuck as most of them (using HYS as my non-scientific, non-representative sample) would have been born here…

Terrorism in the 21st century

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Go on home Osama Bin Laden, you are so last century in your, frankly pathetic, attempts to destroy western civilisation. For over five years now we have heard the mantra about how evil Islamic Terrorists want to destroy the decadent, freedom loving, west and how they will try to bomb us into submission.

Basically they are just impatient amateurs. If they wait long enough we do it to ourselves.

Lets look at the world of 2008:

In my job, I travel by air a lot (*) and as a result get constantly annoyed by the idiotic rules we suffer under the guise of “security.” I get monumentally annoyed by the fact that I have to check in hours before my flight, but should I want a drink during the inevitable two hour delay, I have to pay extortionate airport charges because 101mls of water is deadly (while 99mls isn’t). I get really annoyed at the obnoxious attitude most airport security staff have – although, in all fairness this is probably a reaction to suffering annoyed passengers day in, day out…

Outside work, I am a hobby photographer. I love taking pictures on my travels and feel that the cities and towns of my own country are on a par with anywhere else in the world. However in the new world of “Security” taking photos in public places of tourist landmarks results in a uniformed member of the public (**) coming up to me and asking me what I am doing. Thor forbid that a terrorist group be inexpert enough to need to overtly set up a large Digital SLR to take photographs rather than use a mobile phone or compact camera (the millions of people doing that get ignored…).

Travel around the UK and you will be recorded on CCTV along pretty much every urban street. Go into a shop and you will be recorded on CCTV. Drive along the road and you will be subjected to all manner of electronic surveillance – because, basically, you cant have any expectation of privacy in a public place (***). Despite the idea all people are innocent until proven guilty, the government have decided that Islamic Terrorists are different and the state should be able to imprison them for 42 days before it has to show enough evidence to make a charge, let alone convict. Thank the Lords this has been rejected (for now).

In the UK, religion has always been a minor part of public life and thank Odin, this is still pretty much the case. However, since the Evil Islamic Terrorists appeared, there has been a (so far minor) upsurge in people equating “Christian” with “British.” As such, an attack by Islam on Christianity is being sold as an attack on our fundamental “Britishness” to the point at which the tabloids and tacky local TV have people talking in all seriousness about how the United Kingdom is a “Christian nation” and “Britain was founded by Christians for Christians” – obviously these historically challenged dullards are watching too much American propaganda but that is another issue.

This is the non-religious, freedom loving, civilisation that is so threatened by Islamic terrorists. Hmm. Osama would love it here. Ironically, even our recent fear-inspired legislation wasn’t quite enough to smash western civilisation.

Trumping an army of Osama Bin Ladens, when it comes to smashing down western civilisation the real master is simple free market economics.

It is a sad state of affairs that we can pass laws regulating every aspect of your private life, but even in the face of an economic melt down the thought of regulating “The City” is beyond the pale. City traders can, effectively, lose millions of other peoples money with not even a hint of censure – still getting huge bonuses on the eve of begging the taxpayer for a fortune to cover their losses. The crazy irony of this sees us giving them money so they can give it back to us and tell us it is our own savings… Despite their monumental failings, and complete lack of anything resembling expertise, the banking sector still claims it “knows what it is doing” and should be allowed to function unregulated. Can you imagine catching a con-artist stealing your money, then giving them more money because they know how best to get your money back!!! Insane is an understatement.

The collapse of Iceland’s banks, and their governments apparent refusal to honour international agreements, has caused huge damage to the UK economy – on greater scale than any caused by terrorist attacks (if you ignore the cost of ensuing wars). If I deprived my next door neighbour of £100 I would expect to be arrested and probably jailed, however it seems if you add a few extra zeros everyone forgets about it. Iceland basically have held a gun to the governments head and taken our money. Wars have been fought over much, much less.

In an amazingly scary example of economic understanding, the Conservative shadow Chancellor said that the government should reimburse the councils that lost money to Iceland otherwise council tax would have to be increased to cover the loss. This seems sensible until you realise the effect would be to increase the tax burden on everyone to cover the mistakes made by a few. How would that be fair? Is this what we are to expect from a Conservative government?

I agree with the Government that the national banks and banking infrastructure is critical to the well being of the United Kingdom. I also accept the assertion that it is so important, spending £50,000,000,000 to shore up a system broken by greedy, selfish scumbags is in the public interest. I accept that this will mean other aspects of the national infrastructure will suffer and I accept that this is a necessary evil.

What I cant understand is:

  1. How can something so vital to the nation be outside complete government control? More importantly, how can something so vital be so heavily influenced by foreign nations which, when push comes to shove, have national self interest at stake? This really confuses me.
  2. Why is no one being punished for this? The bank failings are either malicious (in which case why don’t we invade a random country like we’ve done in the past) or negligent. Or both. The claim this is just the “market” is nonsense – the city traders claim to be financial wizards but abjectly failed to see this happening – either they are crap or they were played. Either way someone should be held accountable.
  3. Why the **** haven’t we enforced rock solid legislation to control such a critical asset? We’ve spent over £1000 per living person in the UK on them, why aren’t we having any say in them?
  4. How on Earth are the bankers getting away with claiming they “know best” on how to handle the current situation? (See 2) Blatantly they don’t or if they do, they are working against the national interest.
  5. Why are UK public bodies (Police and councils) allowed to invest money in foreign institutions? The quest for an extra percent of interest has meant public money is being sent to a foreign nation. Let me reword that – money paid by UK taxpayers has been given to a foreign country. Rather than invest in the UK economy dozens of UK public bodies chose to throw it down an Icelandic toilet and when they inevitable happened they cry to the government for more money….

I am going to have to stop here. The madness makes me want to scream. If anyone can explain this to me I would be very grateful.

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* Apologies to environmentalists, but unless you are willing to pay me not to fly, my choices are limited.

** Sometimes referred to a “Police Community Support Officers” but that implies they are trained members of the law enforcement community, when in reality 75% of them are nothing more than jumped up busy bodies who get to wear a hat.

*** Well, this is true by definition. However there is a “spirit” of the law thing to consider. While you cant realisitically expect to be private walking down the street you can expect the state to not surveil your every movements. While it can be argued that the almost blanket CCTV coverage is not directed against you, the fact remains it is possible for someone to retrospectively search the databases and track your every movement. The fact the surveillance is directed against 65 million people doesn’t stop it being directed.

Do anything when in crisis

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In my previous post, I pretty much said everything I could ever say regarding my limited understanding of the financial crisis, so this has a slightly different spin.

The BBC today have carried an interesting quote from the illustrious George Bush:

Mr Bush said at the White House: “We are in an urgent situation and the consequences will grow worse each day if we do not act.”

Taken at face value it is quite frightening. But here in our comfortable Ivory-WhyDontYou Tower we have heard this before. Lots of times. On both sides of the Atlantic. About lots of different situations.

For those of you have been bored enough to read high pressure marketing crap, you will recognise some of this. A staple of a scam is the call to urgent action. The sales idea is that by telling you to “Buy now while stocks last” is a great way of over-riding your decision making process. I am sure most people can remember when, idly surfing, you would be confronted with a pop up window saying you were a winner and you only had 10 seconds to click before you lost you wonderful prize.

Now, unusually for Bush, this is slightly more sophisticated. It is very true that we are in an crisis situation. It may even be urgent. However, none of this supports the second half of the statement. Even more crucially, not one part of the statement supports the proposed bill.

If you accept that the situation is urgent and delay will make it worse, you are still left with having to find out what the solution is. Simply doing anything is not the answer. Oddly, this is what the English speaking politicians seem to be crying for. The idea appears to be that doing anything is better than nothing.

What madness.

Doing something useful is better than nothing. Simply acting is not. In fact, doing the wrong thing can be worse than doing nothing. Bush again:

“We’re facing a choice between action and the real prospect of economic hardship for millions of Americans,” he warned.

“Action” – don’t you just love it? Sounds so dynamic and heroic. In fact it is so masterfully-leaderlike, who cares what the action is! More importantly, who cares what nonsense it is.

The choice is not between action and economic hardship. Even with the bail out plan, economic hardship is in store for millions of Americans – just a different set of millions than the one he wants to protect.

The choice is between a knee-jerk reaction and doing anything in the hope it will work, and trying to discover what will actually work.

Anything else is selling snake oil to the American public. Do people still buy that stuff over there?

Banks Fumble, Taxpayers Punished

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The current “banking crisis” has been pretty hard to ignore of late, but here in the WhyDontYou ivory towers, we have tried. Partly this is because both of us are in (largely) economy immune employment sectors and partly (mainly) because neither of us can really fathom the nonsense being thrown about in the news. Given that both of us are required by profession to be mathematically astute (yes, really) it could be taken to imply that the average citizen would be even more lost.

With this in mind, it is entertaining to watch the news about the crisis when it pretty much only shows scared-to-death financial experts going on about weird ways of selling things you dont have (short selling) and how important the banking risk takers are to society. They are so important that the rest of society has to protect them should their risk taking go wrong. Being ignorant of the financial wizardry, this strikes me as being totally insane, let alone unfair. This post (long, sorry) is pretty much a way for me to let off steam about something that is destroying peoples lives and, basically, really annoys me. I would welcome your comments and feedback on my take – if I am wrong, please educate me.

There are two headline examples today (in the UK at least) – The UK Government take ownership of the crap part of Bradford & Bingley, after selling the good bits to a Spanish bank; The American government fails to secure a $700bn line of funding for its banks to keep them safe. (Neither are good news items. Neither are going to reassure people that their future is safe. Do not mistake a light tone here for a lack of concern)

Some Background

UK first. Starting about 20 years ago there was a big rush for building societies to become banks – changing from being basically there for a group of people in one area (eg. Bradford, Halifax) where everyone who paid in was a member to becoming a limited company, where some of the members became shareholders. In the process, especially throughout the 1990s the drive was on for these banks to press hard and return massive profits for the shareholders (often a tiny subset of the Building Societies membership). At the time (and in principle it still does) this seemed a good idea. Most people got a bit of money (sadly for most of the members this was just a bit – around £100) and a few people got lots and lots of money. Everyone was happy.

From this, there was a drive in the finance sector to target more and more high risk trades, where often the winnings were large beyond the avarice of mortal man. City bonuses in the millions ceased to be newsworthy and sales of high end sports cars went through the roof. Being a “risk taker” became the nicest thing you could say about someone. We (the public) were dimly aware that there was a risk it could fall down on the bank (Barings) so we accepted the ostentatious lifestyle of the successful. For some reason we were convinced it was down to skill and intelligence rather than basically throwing dice and hoping for the best. These were people who worked hard predicting the markets and had a rare skill in knowing where the trades were. Or so we thought.

Hidden for most of the time were the downsides to this.

Insane wages in London made the already insane prices there spiral out of control. People began to think that paying £750,000 on a one bedroom apartment was a “good investment.” In turn, this priced even well paid people out of the city, so prices near London went up (often even faster if it was commutable and “nice”). For the last ten years it has been impossible for anyone on less than twice the average wage to even think of buying a house in the south of England, without a hugely fiddling their application – so they did. People overstated their income, understated their expenses, and took insane repayment terms hoping they’d get on the gravy train before they had to pay the capital. Lots of these people had “normal” jobs and were not aware that they were bearing the same risk that the Ferrari driving millionaires living in central London appartments had. The public never benefited from the wins so, rightly you would think, assumed it was safe from the risks.

Wrong. (More on that in a minute)

A similar story in the US (I assume, I have no idea of the background). From my visits, the gulf between rich and poor in America vastly outstrips that in the UK. I have always thought that if you were filthy rich, there is no better place to live than the US, but if you were penniless poor the UK wins. Rich people in America are really rich. I am amazed the poor survive one day to another.

In recent years, the risk loving traders have really had a few field days in the US. Massive windfalls made rich people richer. They took huge risks, which often paid off. People applauded them for having the guts to risk so much, making it hard to condemn them for their salaries and bonuses. As with the UK, most Americans had some fallout from this (house prices going up for example) and people begin to think that property is the best investment, so take some personal risks to buy a house. In turn the bank takes a bit of a risk lending to them, but often at crippling interest rates that will see the bank get its money back in spades.

Eventually, as everyone with hindsight knew it would, the whole system explodes. That is the thing with taking a risk, sometimes you get hurt.

Here is where my understanding and reality part company.

Current events

I have always thought that you took a risk, gambled something for example, sometimes it would pay off and other times it wouldn’t. Some risks are “low risk”: for example, betting that a tossed coin will land on either heads or tails rather than its side is quite a low risk bet – you are a lot more likely to win than lose. Some are “medium risks”: betting on heads in our example. Some are “high risk”: betting the coin will land on its side. They all make sense to us and we live with this sort of understanding on a day to day basis.

The world banks have paid their “High Risk takers” absolute fortunes because they take high risks. This is fair. If I bet £1000 on the coin landing on its side and I won, I would expect to win big, if I bet £1000 on the coin not landing on its side, I would expect to win a tiny amount simply because I wouldn’t expect to lose.

For most of the last two decades, the amazing thing is the risks have (on the whole won). The coin has landed on its side a lot. People have won big.

The problem is people then forgot what a risk it was. If you win something that is high risk enough times, you forget that it is high risk and assume the opposite. The merchant banks have been so successful with high risk ventures, they forgot that “high risk” meant dangerous and plowed more and more money into it. They still throw around the terms, they certainly still paid the bonuses, but everyone assumed it would never happen.

Then the coin came up tails and everyone lost. Everyone who had bet big, lost big.

Oddly, this came as a shock. The great and bold risk takers were mortified. Nothing hits a herd as fast as panic and the trading centres of the west are no different. Contagious fear spread everywhere and a generation of “risk takers” who actually had no idea about risk were the most affected. The less scrupulous traders saw a chance to strip the foundations of fragile structures and asset rich, stable organisations took a massive hit (Bye, bye HBOS). The wonders of a free market allowed short-selling and a few scares to destroy a company with solid resources – can you imagine how scared the rest must have become.

Risk?

So, in the interests of a free market, the government steps in and saves the companies. The government spends billions of the taxpayers money to rescue institutions that have, basically, gambled themselves out into the street.

This is where I am confused.

In the UK, the government has reportedly taken over a £50billion debt on behalf of Bradford and Bingley. That is effectively £1000 per person so that the demutualised, risk taking, company can survive. Although we were not aware of the risk we were taking, nor did we share in the rewards, everyone of us in the UK was involved in the gambles these people were taking.

The US has the same problem. The $700bn bail out (good idea or not) is a phenomenal sum of money. The high flier financial wizz-kids and their high risk lifestyle would cost every one of the 300 million people in the US over $2000. For someone on federal minimum wage, that is 321 hours work – 40 working days – to save the rich from becoming poor (I know it is not quite that simple). Instead, the poor get a little bit poorer. Wonderful.

The US must be the only modern democracy where funding the rich bankers is a more appealing proposition than giving healthcare to the sick. That confuses me.

To confuse me even more, the news today had lots of talking heads on both sides of the Atlantic saying how it might seem strange but it was vital that the taxpayer (poor) bail out the bankers (rich) because. Often simply because. Sometimes there were vague, dire, warnings about the economy, but most of the time it was just a simple statement. We have to do it.

Why?

I don’t doubt that letting one or two banks slip will cause even more panic which will destabilise the economies, but if the US has $700bn and the UK has £20bn going spare, then surely we can weather some rough times. When the average person on the street still has money for shops to take off them, then the economy will still work. In my mind that is where the salvation needs to be pointed.

Equally odd, is this new definition of risk.

If I gamble my house on a high risk deal and lose, I lose my house. Will the government bail me out? (Well, in the UK we have social housing but that is different) It is unlikely. For me, betting on high risk stocks is just that – high risk. I stand to gain but I also stand to lose everything.

If a bank gambles the houses of 20 million people and loses, well they really lose nothing. Poorly paid staff will get laid off but the “risk takers” are immune. The organisation is immune because as long as it cries loudly enough the government helps. For the banks, betting on a high risk is actually risk free. They will either gain a lot, or lose nothing.

Why is this acceptable? Why is this considered normal? Why are we still hearing that it is all down to the taxpayers to save these banks? Why not claw back the multimillion bonuses? Why not fine the fund managers? Why are they allowed to gamble without risk, yet still be thought of as “cool” risk takers?

Crime and Punishment

The most sickening thing about the whole deal is not just that the taxpayer has to suffer.

If, through negligence or design, I caused someone to lose out to the tune of £1000 there are laws that would punish me. If I gambled £1000 of someone else’s money without their knowledge and lost it, I would expect the police to visit me and to end up in jail.

It seems, however, if you do it with enough people then not only does the government step in to cover your debts, but you dont even get punished. In the middle of the credit crunch, UK stockbrokers were still getting massive Christmas bonuses (just not as massive… poor things).

While it often smacks of unscientific voodoo, I accept what the “finance experts” say and that the state has to prop up these failing institutions. However, why should the people who have caused this problem be allowed to walk away? If, for example, the fund managers and directors of each organisation were to be fined in proportion to their participation, the rescue plan’s tax burden would be a sweeter pill.

Alternatively, if this heralds a new era of tightly controlled financial markets, where crazy risks are punished, and these people are not simply able to start ripping the world off again in a few years then, again, it becomes a bit more acceptable.

I think the problem is, this will never happen. The hint that the US bail-out would be followed with government involvement meant that the Republicans stood against the great George Bush and turned down the bill (*). It seems the only way a rescue plan will be approved is if it carries no strings or punishments. Basically, the bankers are free to risk all our money without having to worry…. (Slightly better over here, where we are more accepting of government control and oversight).

What a wonderful world.

(*) This adds an ironic twist. I strongly think that the Republican party expect to lose the next election. McCain/Palin are their idea of a joke. They know the country and the economy is about to tank, and the war in Iraq has gone badly. If they lose the election, Obama will be handed a hospital ball of a presidency. Unless he is truly Odin’s chosen one, come the next elections people will still be smarting from the economic crisis and will be ready to turn to the Republicans once more. Taken in this light, both Bush’s plan to asset strip the country, and the parties refusal to do something that (on the surface) benefits the public makes sense.

Can you be too cynical?

Landlords – Public Enemy Number 1

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Again, this is a long, non-Atheist, rant. If you are reading on the magnificent Planet Atheism, or have come to the blog looking for philosophical insights into religion, please feel free to skip.

Depending on which sections of the UK media you have access to, you could be mistaken for thinking that, recently, buy to let landlords are the Earthly incarnation of evil itself and that any day now George Bush will declare war on them. As always, this is especially prevalent in the “left” media (what remains of it) but it has echoes all over. An example, is this weeks “Guardian Money” pages which has a massive spread about the evils of Buy-To-Let, along with a page of letters from readers who also think landlords are the definition of scum. The joys of the internet mean you can now read this online.

Highrise StockholmPersonally, I think it is all nonsense. I am pleased about this, as I have noticed a slight left-wing tendency in my previous posts, so hopefully this will bring me back to the centre 😀 .

Blocks of Flats in StockholmThe basic premise, in this article anyway, is that buy-to-let landlords have little regard for the local “community” and allow their properties to fall into disrepair. The secondary premise, and the main reason people hate buy-to-let-landlords in general, is that people who can afford to buy multiple houses are pushing house prices up, beyond the reach of any first time buyer. This is (sort of) supported by the data which shows the average UK house price is now around seven to nine times the average UK salary.

Before I attack some of the nonsense in these premises, I must declare an interest. I own a house which is rented out. I bought the house knowing I was unlikely to live in it for many a year and I still don’t live in it. I don’t even live in the same country the house is in. As a result, I do worry that legislation which affects buy to let landlords will affect me, and this gives me a fairly strong opinion – I may not be fully objective…

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