“The only function of economic forecasting is to make astrology look respectable.”
John Kenneth Galbraith 1908-2006

I am someone not given to worrying about things that may or may not happen in the future, I leave that to other members of the team. My personal belief is that if there is a possible problem, you can either do something about it or you cannot. If you can then shut up and do it, if you cannot then leave it alone and work on something you can effect. Quite often an unexpected solution presents itself and everything is alright on the night.

There is much talk about the country sliding into recession, and even eventually into depression. Companies are asking the government for bailouts and others are going to the wall. I must admit when major companies like Woolworths and MFI go to the wall, and multinationals like Chrysler, GM and Ford are reportedly struggling to stave off bankruptcy it does paint a grim picture. So should the state bail these companies out or not? The latest talk is of Jaguar being given upto £1 billion in financial help. I must ask why, they are owned by an Indian company, not a British one, should it not be the place of the Indian government to offer aid to an indian company? Poor old Woolworths has gone to the wall for a mere £300 million, much less than Jaguar need and they are a British company, so why are they any less deserving than Jaguar are? Another point is that in business when a weak company ceases trading its business is picked up by other companies who are thus made stronger, but by offering failing companies help, you are rewarding some companies for failure, whilst those that have, through their own prudence found themselves on a sound financial footing are going to be penalised by not being offered help. One of the major American financial institutions that have been bailed out by their government has reportedly paid all of its staff £53,000 bonuses. If the company is in such a state that it needs propping up, what exactly are the staff being rewarded for?

As to Jaguar, I have just bought a Jag, and think its a great car. I wouldn't like to see them go to the wall, BUT I object strongly to my tax payments being used to fund a company owned by one of the richest men in the world. I don't suppose as a thank you for the use of my tax money Mr Tata will knock anything off the next Jaguar I go to buy. Equally when the economy eventually picks up, will these firms that have been helped out offer to pay a higher rate of tax as a thank you, will they hell, instead they will employ very clever accountants who will find a number of dodges that ensure they pay less tax than ever.

In a similar vein, the banks are being bailed out to the tune of billions, but you miss a couple of mortgage payments because of the state of the economy and see just how much help and understanding they offer.

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