Could this be the climbdown of the year?
Alistair Darling's announcement that the Government is to privatize Northern rock after realising that Virgin and the management bid will require a great deal of subsidy from the government.
Critics will no doubt ask the obvious question.Why was this not done in the first place and how will the government deal with the difficult decisions it will now have to take.
Peter Doskin over at Coffee house describes it as
"yet another case of Government dithering, and one of the most monumental yet."
George Osbourne over at BBC online says
After months of dither and delay we have ended up with this catastrophic decision. We now have the situation where the government will be making decisions on whether or not to foreclose on people's loans in a falling housing market."
The pepole that will lose out the most are the Northern Rock shareholders who may well see their shareholdings become worthless.
1 comment:
It's yet another example of this government's incompetence. Gordon Brown should do something right for once and call a general election.
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