Randy Horton might have been his running mate when Ewart Brown challenged for the PLP leadership in 2006 but that didn't stop him from axing Mr. Horton from Cabinet.

The firing meant the Progressive Labour Party had to appoint its seventh Education Minister in ten years – and the instability factor is something critics believe has contributed to the schools malaise.

Dr. Brown said Mr. Horton was not moving fast enough on education reform, but others said it was a bid to silence a possible leadership rival.

Mr. Horton then held a press conference but as the media gathered expecting blood to be spilt Mr. Horton restrained, saying he was disappointed, but politics was a strange game.

He was replaced by El James who left Environment and Sport, which went to Cabinet newcomer Glenn Blakeney. Bermuda Union of Teachers' general secretary Mike Charles spoke out over Mr. Horton's sacking, suggesting the wrong man had been fired and some of the blame should have gone on the shoulders of $250,000-a-year education supremo Henry Johnson.

Mr. Charles also added that interim education board head Philip Butterfield bore some responsibility.

Mr. Butterfield fired back at Mr. Charles when he appeared in front of the Joint Select Committee on Education and registered outrage that the Island was paying attention to a gym teacher who had had his15 minutes of fame.

Mr. Butterfield added that he didn't give a damn that unions were annoyed about the way reform was being handled. The BUT called for Mr. Butterfield to be sacked, and he was forced to issue a public apology in which he praised Mr. Charles and his team as being committed education professionals.

Obama elected

November was the Obama month. Seemingly every politico in Bermuda loved him – but they wanted to claim him first. And what could have become a focal point of political unity ended up as another ugly spat.

Premier Ewart Brown claimed that if white Bermudians had voted in the US presidential election like they vote in Bermuda, they would have plumped for John McCain rather than Barack Obama.

That statement infuriated white liberals who flooded The Royal Gazette letters page with outraged responses. The issue ran and ran and for once the letter writers were signing their names. The Premier tried to blame it on this paper but still the letters poured in.

It started out all so different with Bermudians rejoicing the election of America's first black President who had transcended race in a campaign in which he took the high road 95 percent of the time.

Downturn begins to bite

In the Throne Speech Government announced its high-cost projects including a new hospital and swimming pool, will go ahead despite the economic downturn. It came after promises to cut Government spending by more than ten percent across the board however details about the timeline and cost were not immediately available.

Government also pledged to tackle the gang problem in schools and establish a treatment system for problem families. And parents could soon by held criminally liable for the crimes of their children under parental responsibility legislation.

While Government pledged it would not shrink in the face of economic crisis, the effects of the downturn were already being felt.

Fidelity International Limited cut eight jobs – 11 percent of its workforce – as the company struggled to adapt to plunging financial markets and the global economic crisis.

Goslings shut its St. George's store because of lack of trade, Carole Holding Ltd. did the same, while AS Cooper & Sons Ltd. announced it would not renew its lease.

The economy continued to dominate the headlines with news that inflation had hit a 17-year high of 5.9 percent, driven by massive increases in fuel and power.

And tourism arrivals dropped 22 percent in the third quarter. XL Capital boss Michael McGavick warned that Bermuda could soon be hit by punitive US tax changes as he also expressed concerns that talent was fleeing the island to other jurisdictions.

MPs Pay

While the Island was coming to terms that the economic boom times might be coming to an end, Government released a report detailing plans to raise MPs pay by up to 30 percent.

The news caused uproar among the public and a week after the report was released Government said it would be shelved.