Politico

Christine Toner
Features Editor

The events of this week show two things. One - things got so bad the government had no choice but to resort to drastic measures. And two - at least now we know we can rely on Gordon Brown and co to take decisive action when needed.

No doubt taxpayers will feel a little hard done to by all this but there really was no other options. The cries of “let the banks suffer it’s their own fault” would no doubt be hushed if the public fully understand the consequences of such a move.
What has also come to light this week though is that consumers have yet to feel the real brunt of the economic crisis. While the mortgage market starts to pick itself up following the recapitalisation of Lloyds TSB, HBOS and Royal Bank of Scotland Joe Public is set to face problems as the credit crunch starts to take its toll on the normal folk.
Forget inter-bank lending and LIBOR, from now on it’s about unemployment and inflation. In other words, while the banking industry can breathe a sigh of relief for a little while at least the public should batten down the hatches and get ready for the Credit Crisis Take Two.
The other big news in the world of politics is of course the return of Peter Mandelson. The man who was twice been forced to resign from government, once because of financial issues has been appointed business secretary. Great, that’s is just what the business world needs right now