Tuesday, 25 August 2015

China Stock Market

A lot of people on the left are saying that if the Chinese Stock Markets continue to fall, the left could make a huge political gain from it.

However, here are a few difference people need to realise between what's happening now, versus what happened back in 2008.

Firstly the 2008 recession was down to the banks, not the Chinese stock market.

Governments across the world did not listen when economists warned about the recession that was due to hit, and did not regulate the banks, including our government at the time (Labour).

Many on the left will argue that the Tories said less regulation, yes they did, but unlike Labour they were in opposition, and could say pretty much what they liked.

In the end, Labour bought shares into the banks, some at ridiculously high rates, which would always mean a loss for us, the taxpayers who's money was used to bail them out, when this current government was finally able to sell them back again.

Today's problem has nothing to do with the banks, or any governments regulations. Our government can do nothing to stop what's happening in the Chinese stock market.

The only way Labour could gain political momentum is if this government deals with the up and coming recession badly... but we've already seen George Osborne guide us out of one recession, and he's done it pretty well,

So Labour are still on the losing foot, they really can't make any political gain, nor can they blame this on anyone except Communist run China.

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