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  Two things should have brought about a rise in the stock market today,.
  
  The deal in the USA being agreed, with the bad debt liability being lifted away from the financial sector which should help address the key issue of liquidity that is holding up recovery. OK there is still a vote in Congress to be achieved but this should happen despite some negative comments from some quarters.
  
  In the UK the action to rescue B&B should also have helped the situation but it has been screwed up.
  
  Brown announced that other Banks and Building Societies, like Nationwide and Lloyds, who have not been responsible for the bad lending are going to have to pick up the tab for lending defaults of B&B and NR. In other words Brown has done the opposite to what the USA has done....
  
  Now, I agree, that ideally taxpayers should not have to pick up the bill either but surely we, like the USA, need as a priority to restore liquidity to the financial sector. This is the main problem that is faced by our economy. Brown's action is likely to deepen and lengthen the recession, not resolve the problem. The stockmarket reaction refects that concern.
  
  I know that this is a complex issue but this really is a fowl up and may well result in a much bigger bill for taxpayers than the alternative of drawing a line under the problem in the manner of the USA.

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