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Brown attacked over Northern Rock Brown attacked over Northern Rock
(about 3 hours later)
The Lib Dems have blamed Gordon Brown for failing to stop the "reckless" lending which they say led to the near collapse of Northern Rock.The Lib Dems have blamed Gordon Brown for failing to stop the "reckless" lending which they say led to the near collapse of Northern Rock.
Treasury spokesman Vincent Cable called it a product of executive "greed", lax regulation and government complacency.Treasury spokesman Vincent Cable called it a product of executive "greed", lax regulation and government complacency.
Mr Cable said he warned Mr Brown about a looming debt crisis "four years ago".Mr Cable said he warned Mr Brown about a looming debt crisis "four years ago".
The Conservatives have also blamed the government for Northern Rock's problems - but ministers say it is down to market conditions. The Tories say the government is presiding over "a mountain of debt". But Chancellor Alistair Darling says the UK economy remains strong.
Speaking at the Lib Dem conference in Brighton, Mr Cable said: "The British economy may have been reasonably successful but it is also highly fallible.Speaking at the Lib Dem conference in Brighton, Mr Cable said: "The British economy may have been reasonably successful but it is also highly fallible.
"The house that Gordon Built may not be built on sand but it has certainly been built on a floodplain."The house that Gordon Built may not be built on sand but it has certainly been built on a floodplain.
"It has yet to be fully tested against rising economic sea levels, though the events of the last week suggest that it may be very soon.""It has yet to be fully tested against rising economic sea levels, though the events of the last week suggest that it may be very soon."
'Reckless lending''Reckless lending'
He added: "This current boom does not depend on long term investment or on exports or on the cultivation of a more educated, skilled, labour force.He added: "This current boom does not depend on long term investment or on exports or on the cultivation of a more educated, skilled, labour force.
"It is powered by debt financed consumer spending, some reckless lending and the optimism generated by a house price boom."It is powered by debt financed consumer spending, some reckless lending and the optimism generated by a house price boom.
"The water is now pouring through the defences after the near collapse of Northern Rock; a product of greed and reckless gambling by overpaid executives; lax, indulgent bank regulation; and a complacent government. I warned Gordon Brown of a looming debt crisis four years ago.""The water is now pouring through the defences after the near collapse of Northern Rock; a product of greed and reckless gambling by overpaid executives; lax, indulgent bank regulation; and a complacent government. I warned Gordon Brown of a looming debt crisis four years ago."
Mr Brown, the former chancellor, had presided over a widening wealth gap between the rich and poor, said Mr Cable. This government has presided over a huge expansion of public and private debt without showing awareness of the risks involved David Cameron class="" href="/1/hi/uk_politics/6998861.stm">Tories urge banks statement
"The economy remains Gordon Brown's main weapon and his Achilles heel." Conservative leader David Cameron has called on Mr Darling to make a full statement on the Northern Rock crisis.
The immediate priority must be "to reassure people about the situation and the safety of their deposits", he said.
He stopped short of calling for a recall of Parliament, which he said would "only add to a sense of alarm".
But he argued: "This government has presided over a huge expansion of public and private debt without showing awareness of the risks involved.
"Under Labour our economic growth has been built on a mountain of debt."
Wealth gap
Mr Darling told BBC Radio 4's Today programme that people will still be able to get their money out of the Northern Rock if they want to.
He said the current problems were specific to the Northern Rock and that the UK banking sector was sound.
But he admitted that it had been clear since August that there was a worldwide credit crisis which originated in the US and was affecting banks across Europe.
In his speech, Mr Cable also accused Mr Brown, the former chancellor, of presiding over a widening wealth gap between the rich and poor.
With hundreds of people facing insolvency and 75 family homes repossessed every day, "Gordon Brown must take personal responsibility" for the failures.With hundreds of people facing insolvency and 75 family homes repossessed every day, "Gordon Brown must take personal responsibility" for the failures.
He had failed to tackle the banks over "debt promotion, unfair charges and irresponsible lending".He had failed to tackle the banks over "debt promotion, unfair charges and irresponsible lending".
But the "day of reckoning cannot be far off".But the "day of reckoning cannot be far off".
Binge Inequalities
Mr Cable also launched an attack on the "super-rich," following party leader Sir Menzies Campbell's pledge to "hammer" those at the very top of the income scale.Mr Cable also launched an attack on the "super-rich," following party leader Sir Menzies Campbell's pledge to "hammer" those at the very top of the income scale.
Research carried out for the party indicates that 84% of the public believe the earnings gap between rich and poor is too large - with the figure rising to 92% among Lib Dem and Labour voters.Research carried out for the party indicates that 84% of the public believe the earnings gap between rich and poor is too large - with the figure rising to 92% among Lib Dem and Labour voters.
Some 72% think wealth inequalities have grown worse under Gordon Brown's stewardship of the economy, while two thirds want the richest to pay more tax, according to the party's poll.Some 72% think wealth inequalities have grown worse under Gordon Brown's stewardship of the economy, while two thirds want the richest to pay more tax, according to the party's poll.
Mr Cable's criticism came just a day after Tory leader David Cameron directly pinned the blame for the Northern Rock crisis on the prime minister, accusing Mr Brown of presiding over a borrowing binge while he was chancellor.