[Pen-l] "Brown and Darling have set the world an example"

["Chris Burford" <cburford@xxxxxxxxxx>]

This article in the Guardian online Comment is Free section by Will Hutton
former editor in chief of the Observer and long time radical liberal critic
of the economics and sociology of Thatcherism, is triumphant that he feels
his ideas have been listened to.

"Brown and Darling have bitten the bullet - and set the world an example
Bold, comprehensive, and at times eye-popping, this plan for partial
nationalisation is just what the system needed"

http://www.guardian.co.uk/commentisfree/2008/oct/09/economy.economics



but there is an ominous sting in the tail, which I think it is fair to say
has not yet attracted much public comment.

All the attention has been on marginal mortgages. What about credit default
swaps?

"The American decision not to support Lehman Brothers is now turning out to
be the fulcrum on which the crisis has turned. It is not just that Lehman
had $110bn of senior bonds that are now virtually valueless; it had written
an estimated additional $440bn credit default swaps on top which it cannot
honour - a large part of which will come due at the end of this week. Wall
Street is transfixed, as are the Asian markets. Nobody knows where these
losses will end up."

Chris Burford
London

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