From the TUC

Agghhh, it’s a public debt crisis! Erm, maybe not.

26 Mar 2009, by Guest in Economics

To read the papers this morning, you’d think the Government was staring insolvency in the face because yesterday’s auction of gilts was 7% unsubscribed.  But suddenly today’s auction was three times over-subscribed killing a jolly good story.  There is an awful lot of silliness in the reporting of the public finances at the moment – encapsulated in this 24 hour panic – stoked as usual by the right wing commentariat and the Conservative Party. Indeed the Tories must have thought their moment had come yesterday; how disappointed they must have been as they sat down for elevenses today.

Journalists are also getting a bit over-excited about the delphic comments coming from politicians’ lips.  For example, Reuters has concluded today that the Chancellor has endorsed a fiscal stimulus while Bloomberg deduces the opposite from the same comments.

To paraphrase Michael Winner: “Calm down dear, it’s only a Budget”.