*On reading this back I don't really understand why the credit crunch came as such a shock*
So to the economic downturn that I mentioned previously. The Week quoted something interesting from Larry Elliott in the Guardian,
"Only in the Alice in Wonderland world that is modern Britain, would people bemoan the fact that irresponsible speculation is in decline and that house prices are returning to more realistic levels. Everyone now wants interest rates cut so we can continue to spend money we don't have on things we don't need"
We went too far and now we are paying for it. People seem all to ready to blame the banks for being irresponsible, but surely we as consumers are equally to blame. People took out loans they couldn't afford, and greedy home owners pushed higher prices onto the market.
So to the consequences for Labour, a recession (not that it has gone that far yet) is never good for a government. My point is that this is the first time since the late 1980s/early 1990s that the country has experienced an economic downturn of this kind. People of my age have grown up in a boom. Crucially we can now vote. For us labour no longer works. Yet this does not guarantee a victory for the Conservatives, also quoted in the Week, Andrew Rawnsley of the Observer, pointed out the lesson of Major's 1992 victory, bad news on the economy does not automatically benefit the opposition. The "better-the-devil-you-know" principle can apply, although it does rely "on the electorate trusting your opponents even less than they do you".