1976 & IMF

[Fittster]

In 1976 the IMF had to bail out a Labour government. Can any of the more mature PHers recall what impact that had on the average man on the street?

[GKP]

It made the summer really hot. Bloomin' Labour and their global warming.

[s2art]

Fittster said:

In 1976 the IMF had to bail out a Labour government. Can any of the more mature PHers recall what impact that had on the average man on the street?

I can remember the aftermath; laying off nurses and the like followed by the winter of discontent a bit later. Not sure about the ave man in street, but it was fairly grim.

[Simpo Two]

I was at school but I remember that when the power cuts started, my father bought a sodding great diesel generator to keep the house and his business going!

[FourWheelDrift]

It made the water go away and there were shortages, standpipes were put up in the streets. I can just remember it.

Fittster said:

what impact that had on the average man on the street?

Although I believe shared baths were encouraged, so Mr Average Man smiled a lot.

[Chilli]

I read that the IMF would insist on higher taxes etc to help pay for the "loan". Also, Gov'ment bonds might be in danger of losing their AAA rating....Anyone any thoughts on the consequence of this?

[randlemarcus]

Chilli said:

I read that the IMF would insist on higher taxes etc to help pay for the "loan". Also, Gov'ment bonds might be in danger of losing their AAA rating....Anyone any thoughts on the consequence of this?

Didn't I see somewhere that we were about to lose AAA due to the 70% stake we hold in "International Dolescum Bank PLC"?

[Simpo Two]

Chilli said:

I read that the IMF would insist on higher taxes etc to help pay for the "loan". Also, Gov'ment bonds might be in danger of losing their AAA rating....Anyone any thoughts on the consequence of this?

It seems that the banks are looking dodgy, and since the Govt is now very closely linked with the banks, it looks dodgy as well, so investors aren't so interested in buying gilts because they may not pay back, so it will be harder for Brown to borrow money. Basically, Mr Prudent has fked up, big time.

I think the UK is heading for bankruptcy, although what this will mean at street level I don't know.

[Chilli]

I'd be interested to know how many gilts are out there. Should they lose their AAA rating, the bond holders would therefore have to hold capital against them. Currenty banks enjoy a risk weighting of 0% against them, ie no capital required. Downgrade them and a lot of banks etc will have to increase their tier 1 capital, or risk breaching their ratios. This will kill them. IMO obviously.
Any thoughts?