Speculation lives on! - Eddie Barnes

The markets may lack the confidence to speculate in hard cash these days, but the newspaper industry (political wing) is suffering no such crisis judging from today's papers.

First there are claims that the Chancellor, Alistair Darling, is considering a second bail-out of the banks, now that it appears the first one last year hasn't done the job. Then there is talk that he might also create a national "bad bank" where all the High Street banks' toxic assets will be thrown, leaving them cleansed anew. A careworn Treasury official pointed out to me that it is difficult to deny such stories completely when Darling has already declared that he will "consider all options" to tackle the credit crunch. In other words, the story is true, but the key word is "considering".

Second, there is speculation of a Lib-Lab pact, based on an article written by LibDem shadow chancellor Vince Cable talking up the benefits of a national government. Presumably, one of the benefits of this idea for Vince Cable is that Vince Cable would be a key member of it, preferably at Number 11. I have my doubts, not least because LibDem leader Nick Clegg is said to be unenthused.

What's more, a national government would be a rotten idea. The last thing the country needs right now is an echo chamber. For if Mr Darling is preparing to lavish billions more of taxpayers' money to solve the financial crisis, surely we need opposition politicians more than ever, to cast a stern eye over this eye-watering expenditure? Especially those like Mr Cable, who have a proven knack for hitting the nail on the proverbial head....

David Maddox: Tories credit crunched

It appears that no corner of our society is now immune to the credit crunch (with perhaps the exception of the army in deference to my colleague Gerri's blog). According to ConservativeHome, it seems that even the Conservatives are having to lay off between 16 and 24 staff at their London HQ. There will also be a pay and recruitment freeze.
It sounds like the Tories are suffering the same fate as other organisations, particularly charities, which rely heavily on donations. In times of belt tightening donations are far less forthcoming.
Ramsay Jones, the Conservative's chief Scottish spindoctor has just been in and told me that the six and a half Scottish staff are all safe.

Gerri Peev: One industry that won't tank in the recession

WANT big bonuses? Forget Goldman Sachs and join the Army. At least, that's what the forces recruiting sergeants are wanting to spin to anyone feeling slightly crunched by the (lack of) credit.

An ad in a national newspaper today bears the big banner: "WE STILL OFFER BIG BONUSES". It goes on to boast that soliders enjoy six weeks' paid holiday, free healthcare, a competitive pension and subsidised rent. For good measure it adds: "Most of all, you'll have the chance to make a positive impact on the lives of people all over the world. There can be few greater rewards than this." It invites interested candidates to text 'Recruit' to a number (I won't give that out. They can take out an ad in The Scotsman first). The MoD can no doubt save on advertising in the near future though: recruitment levels for the military all round are bound to surge with the economic downturn.

I remember having dinner a year or so ago with a minister who bemoaned the fact that the then buoyant economy and rampant job choices made it a struggle to entice youngsters into the armed forces. With Jock Stirrup, the Chief of Defence Staff, now making clear that more troops will be needed in Afghanistan, the renewed interest in the armed forces as a career option will be welcome.

Paradoxically, the more "progress" Nato makes in the country, the more troops it needs to guard the newly pacified territory. As the Defence Chief himself said: "We have to be very careful in our choice of words when talking about Afghanistan. Terms like winning and victory have no place in the lexicon there."