Confidence

Back in high school, I studied O Level economics.

I failed and got a "u" grade.

However, one thing I did learn is that the entire banking system is based on confidence. Confidence by the customers/investors, that their money is safe in the baks, and the way the bank uses it will supply them with interest.

Once customers lose confidence and try to withdraw their money, the system can collapse.

Its what is known as a run on a bank.

We saw it in 2008 at the Bradford and Bingley, where custmers raced to withdraw their savings from the bank, and thanks to the reserve asset ration, the bank was only required to hold a certain percentage of that money, using the rest for loans and mortgages, it didn't have the money to give to depositors, so as news got round, more people tried to get the money and

Crash.

There is enough fuel in the country.

There isn't enough drivers to deliver fuel, but under normal use there is no shortages.

Until the public, drivers, lose confidence that this is going to continue. Leaking minutes of meetings were plans for shortages were discussed, and Ministers making public statements that there is no need for panic buying will create just that.

So, there isn't a shortage of drivers, as such, and not of drivers with the required ADR licence, but when people all want fuel, they create a run n the filling stations and they run out. This causes more panic and the crisis deepens.

This crisis might ease soon, or it might get worse. If customers fail to regain confidence in the fuel supply or what, heaven forbid, what a UK Government Minister says, then anything could happen.

No Minister was available to do media rounds this morning, making the Government seem weaker that it already appears.

5,000 EU drivers won't make much of a difference to 70,000 or 100,000 vacancies, and certainy not for three months. To be acceptable, visa of at least 12 months would be needed, and even then there is last December to think of and years of anti-foreigner rhetoric.

Who'd want to come and work here?