Thursday, Mar 20, 2008
Lib Dem Nick Clegg talks about serious risk of a house price collapse
Moneymarketing: Lib Dems call on immediate action to stave off recession
Liberal Democrats leader Nick Clegg says the Bank of England and Treasury must act decisively to head off a recession. He says a combination of stricter lending and rising mortgage rates poses a serious risk of a house price collapse and the City of London is seeing not only speculation about the viability of some financial institutions but genuine concerns based upon an unprecedented breakdown of the money and credit markets. Clegg says: “The Government and the Bank of England must stop dithering"
Posted by jack c @ 02:23 PM (1403 views) Add Comment
22 Comments
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1. Fools said...
Nick Clegg talks about 'serious risk of a house price collapse', and Government 'must stop dithering"
Come on Nick, you got be original to get noticed!!
2. Blank Cheque said...
Clegg shows he doesn't understand the issues - its the lax lending criteria of the past that's caused the Credit Crunch in the first place.
His comment is what I'd expect from a politician, espeically one talking about property - publicly demanding action in front of an educated public just to win a few votes, ignorant of the viability or consequences of the action they demand.
3. doomwatch said...
IMHO, MPs like Clegg have been complicit in this stupidity by turning a blind eye to this ever growing elephant.
If I was talking about the stupid mortgages people were taking out & the rate of house price inflation back in 2000,
I can't believe MPs weren't aware, or may have been too busy organising their expensed mortgages.
4. Blank Cheque said...
Totally agreed there doomwatch.
5. Letthemfall said...
Hmm, so it's bail 'em out Clegg now. I wonder if Vince Cable shares his view. I imagine it is not impossible for the Bank to dole out so much money that the crisis does dissipate - for a while. But where does that leave us? Teetering on a high wire? Is it even possible to head of a recession given the reasons we are heading for one?
6. waitingfor hpc said...
who would vote for him anyway???
a useless MP with stupid ideas!!!! ...... so does he think it is a vote winner?? ... perhaps he is in debt too!
did make me laugh though!
7. theboltonfury said...
an MP in debt? He'd surely just be able to use his parliamentary 'pay off one's debt' allowance - no questions asked
8. cyril said...
this is good news - it's proof that the impending house price crash has become a big enough band wagon for the Lib Dems to jump on.
9. japanese uncle said...
I can publicly call him a traitor of the nation (though I do not belong here) in view of his inconsistent conduct in the house of commons over the issue of referendum. How anyone with a right mind can trust this man?
10. paul said...
I agree Fools. Just waving a placard saying "Me Too" won't get any media space, and he's utterly misunderstood the problem.
Par for the course for an MP.
11. Ijjhall said...
Let's face it this kind of talk mirrors that from Shelter and the J Rowntree foundation that dresses up bailing out those in mortgage arrears as social justice. In that respect it is something to keep an eye on as we can expect to hear more and more of it as the crash takes hold and repossessions increase. Question is can this go beyond rhetoric and actually mean something concrete ? Can the govt do a taxpayer led deal with the banks to halt the impact of distress sales ? VI will be lobbying hard for it with full media support...
12. montesquieu said...
Indeed, as Letthemfall says, I wonder if Vince Cable shares his leader's call for a bailout.
Then again the Lib Dems were always great at spending imaginary money. Cable was a rare example of a modern Liberal with a bit of common sense.
13. mark wadsworth said...
What JU says.
14. Randomkevlar said...
I wish this guy had not got the leadership Lib Dems, as a Lib Dems voter (If I vote I do try to vote for the 3rd party as a 3 party system has got to be better than 2) it quite clear he's a numbty whereas Vince Cable did actually seem to at least think about what he's saying.
I also agree with JU and MW that he should be shot over the referendum business last week. Thats it!!! Now I have no party to vote for.
Just goes to show democracy is not freedom, its 51% of people telling the other 49% what to do.
15. quiet guy said...
@cyril
"this is good news"
I wish I could agree. The obvious solution is to let a market correction occur - it'll hurt, sure, but until we have written off the bad debts, we are snookered. The Bear Sterns "rescue" mentioned in the article is considered to be a disaster by some respected commentators in America. After discussing the dollar and asset prices, Jim Rogers has some pretty harsh words Bear Stearns:
http://www.youtube.com/watch?v=wXUU_lyb0Lc
Political tinkering using taxpayer's money is not going to help.
16. layers said...
Blo*dy typical of these idiots. Heads the financials win, tails they win - whilst the tax payer will be expected to bail them out. Watch our interest rates fall - only for savers though - and the pound plummet as the dollar has. Next stop, full UK recession.
17. inbreda said...
"Cable was a rare example of a modern Liberal with a bit of common sense"
Agreed - one of the very, very, very, very, very small proportion of MPs that are respectable.
18. eyeoftheweasel said...
Time for the Lib Dems to get themselves a new leader - again.
19. Fed Up said...
So the Lib Dems also believe in reflating the bubble - they are as bad as the New Labour Tories.
20. Jimmyb said...
You can just imagine him sat there thinking, mmmmmm what can I say that will curry favour with the largest amount of people. This is all politics is about these days, very few of them have a backbone and some genuine real vision.
21. mark wadsworth said...
Randomkevlar, it's worse than that. It's 22% of the people allowing 1% of the people to tell 99% of the people what to do.
22. Wyn Morgan-llanelli said...
While the bankers have had theyr bonuses for years,and things get tough for people who have made hundreds of thousands on property without paying a peny tax.you nick clegg want to bail them out!! you just havent got a clue have you.