Saturday, May 15, 2010
Yeah - here's the truth at last.......
Times: The journey back from brink is proving slow
Growth in Britain has been unbalanced since at least the mid-1990s, over-dependent on consumption. With hindsight, the seemingly easy growth of the Blair years was achieved only through a self-reinforcing cycle of house price growth and plentiful credit.
Posted by chrisch @ 06:44 PM (1246 views) Add Comment
5 Comments
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1. mr g said...
"With hindsight, the seemingly easy growth of the Blair years was achieved only through a self-reinforcing cycle of house price growth and plentiful credit."
I don't see anything new in this article, it wasn't rocket science to see that the "miracle economy" was built on sand, Vince Cable's reputation was established when he raised similar concerns in a question to Gordon Brown in November 2003.
2. alan said...
It will be useful to see how California reacts to their austerity measures.
I liked Arnie in "The Running Man" - let's hope it didn't give him any ideas!
3. happy mondays said...
He was better in predator, Major Alan "Dutch" Schaefer...
But this time " It's de econamy" " ill be back..
4. mark wadsworth said...
Mr G, of course this is old hat, but there are far too many people who think that propping up house prices is the be all and end all of a successful economic policy. To turn the tide of opinion would need a constant media bombardment equal and opposite to all the Home-Owner-Ist drivel we have been subjected to over the last forty years.
Yes of course stupendously wasteful govt spending has to be tackled as well (and rather more urgently than the Lib-Cons are implying) but the property price bubble could be popped overnight (you all know perfectly well how to do it).
5. Jim Green said...
In our new Age of Austerity no one approves of wasteful spending, by governments or anyone else. But the most wasteful spending of all is continually overlooked by most commentators. Without this wasteful spending there would be no government debt and a lot less private debt. I am of course referring to government spending on buying debt-money from private institutions that created it out of thin air on computer screens. This money is created for free with accounting book entries, then lent at interest to governments. The government could do that themselves, interest and debt free, and cut out the parasitic middlemen.