Why Northern Rock is Worse Than Black Wednesday

Labour Ministers are understandably keen to avoid comparisons between the Northern Rock fiasco and Black Wednesday. Yes, there is a very crucial difference. Trying to keep Sterling within the ERM cost the taxpayer £10 billion at the most, whereas the public liability for Northern Rock is eleven times as much. There is another crucial difference too. Black (or White, depending on your viewpoint) Wednesday and leaving the ERM laid the foundation for the strong economic performance for the rest of the decade and beyond. Sure, I'm the short term Britain"s reputation was damaged, but nothing like it has been over the last few months during the Chancellor's dithering over Northern Rock. Today in the Commons he will have his day of reckoning - aided and abetted by the Liberal Democrats.

Nick Robinson adds to the Chancellor's discomfort HERE.
Guido says Seventies style socialism is back.

Darling Humiliated by Northern Rock Nationalisation

Even the most devout Labour spinner cannot disagree that the nationalisation of Northern Rock represents a total humiliation for the government. Alistair Darling's dithering and uncertainty have made even Gordon Brown look like a man of decision. I do not trust the government to run a whelk stall, let alone a bank. And they will be doing it with our - my (!) - money. God knows what hit the taxpayer will take now. And it will get even murkier when the government is sued for mismanaging the whole process, as it surely will be. The whole tri-partite regulatory system, which the Tories warned Gordon Brown would fail when he set it up, has been a disaster. And we're the ones picking up the bill. Plus ca change...