Gordon Finally Admits Catastrophic Error

The big news this morning is that finally after years of denial, Gordy Broontroosers has finally admitted he failed to regulate UK banks properly. He says he was seduced by the argument from the banks that they needed less regulation and he ignored wider interests.

This is potentially a hugely damaging admission.

So why do it?

Well I guess he was advised that as most people think he did make mistakes, it was better to admit them in the hope that at least by being honest he would regain some credibility.

It's possible that this could be good advice - It's up to the Conservatives to ensure that it was bad advice.

In others words, the Conservatives need to demolish Brown over this. They need to point out the horrifying ramifications of this failure. They need to ram home the dishonesty of not admitting it until, curiously, now. They need to point out that Brown's failure was a critical causal failure in the worldwide banking crisis.

The reality is that whilst the US may have been trying to flog dodgy mortgage debt to the world it would not have been possible unless the City of London had relaxed the rules enough to allow them to 'print' vast amounts of money on the flimsy pretext that their lending was supported by assets (the now worthless US properties that have fallen in value by such a huge extent).

Gordy Madoff needs to be exposed for what he is. Because this is the reality of what happened. Rather than running as a future PM, Gordy should now be following up his admission of guilt with deep and sincere apologies to all those European Countries that are in such trouble now. He should be hounded out of office...

But who wins?

Is it the Conservatives? Well. Despite George Osborne's great performance in the recent debate there are still substantial concerns about Conservative economic competence. They have diminished though. So if the Conservative team, whilst attacking Gordon, can point to warnings they gave (Ken Clarke did warn against the FSA setup) they should be able to position themselves as the solution to this problem.

Isn't it curious that Brown has made this admission immediately before the Lib Dem manifesto launch?

Just as the camera is directed on the Lib Dems they have the opportunity to position themselves as the solution to the problem.. you couldn't make it up.