Saturday, Jun 05, 2010
Going the way of Greece, Spain, Hungary?
Times: Cameron: 'Years of pain ahead'
"The prime minister insisted the figures that the coalition had inherited were wildly over-optimistic. “There were two levels of optimism in what the [Labour] government was forecasting,” Cameron said. “One was trampoline growth of 3% and above, and the second theory was that interest rates would always stay low". “It is going to be huge. We will be spending more on debt interest than we do on educating our children and defending our country. It is totally irresponsible what we are left with.” Cameron said. “I did not come into politics to punish people who want to do the right thing and save.” Mmmm...IRs to rise, then?
Posted by alan @ 11:33 PM (2152 views) Add Comment
13 Comments
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1. fallingbuzzard said...
Well I never, cold reality soup.
2. markj69 str05 said...
I still don't get it. Why is the IR so low? So that people spend their extra wodge on the economy? Whilst watching HPI still out of control, and £sterling devaluing allowing foriegn investment into our property market, which is beyond the reach of normal everyday good working folk, (Of which I include myself). Oh, and don't forget to mention CPI and RPI.
What a great gov't we had over the last 13 yrs (Cough... boll0x...cough..). Didn't govern to control this situation. I hope TonyB and GordyB and their cronies choke on their champagne & Caviar, enjoying their pensions, and no doubt other future exploits, after leaving this once great country in the wreck and state it is now in.
'Never has so much damage been done, to so many, by so few'. Crimes against the country, isn't that treason?
3. mystie010 said...
@ markj69 str05 - I absolutely agree with you!!
4. dill said...
22/06/10 is looming large as a date that will define the evolution of a generation in this country, Few will thank them now, but many will thank them later - IF they get it right. It's a very complicated game of push and shove, both domestically and internationally, which could have many outcomes. I wish them luck.
5. mick rupert said...
June 22nd 2010.
Two weeks on Tuesday.
Summary of predictions:
- CGT up
- VAT up
- Somehow they'll get interest rates up
- Cutbacks, er, everywhere
Summary of response:
- Estate agents and the media will talk the property market up!
Reality:
- Tories quietly going for a shortsharpshock property market correction so as to win themselves a new massive tranche of longtime voters, i.e. first-time buyers who were previously unable to buy property.
As a prudent and independently young mand, and a first time buyer (yes, a vested interest, I confess), I hope I am not wrong. I hope the Tories are on my (our) side.
reCaptcha: nettled campaign
6. mick rupert said...
Should add: that "massive tranche of longtime voters" were (ARE!) the longtime alienated from Labour who cheerfully left them behind in this car crash economy.
Get the popcorn ready.
We can't all emigrate.
But we CAN take our own action (pressure group, marches, riots, etc.) if the Tories do just continue with the reckless insanity of house price inflation.
I do think they're sort of starting to softly warn folk that they won't.
Think about it: those "in the game" have had 2 years to "get out". They had their chance to cash in their chips. If they chose not to... well, they've made their own bed.
reCaptcha: jouncing who
7. drewster said...
"We will be spending more on debt interest than we do on educating our children and defending our country."
Time for a Greek / Hungarian / Argentinian style default then? Make the debt payments go away, and overnight we could double the education budget, have classrooms half the size.
8. Thelostdecade said...
drewster, that's an easy one: no.
9. This comment has been removed as it was found to be in breach of our Blog Policies.
10. thelostdecade said...
drewster, that's an easy one: no.
11. drewster said...
thelostdecade,
But if Greece and/or Hungary default, the precedent will be set. Other countries will look upon them with envy, and taxpayers in the ex-Soviet states will start to ask why they are paying billions in taxes to support western banks & bondholders. If several countries default, it will place too much strain on the western banks. Western governments (including the UK) won't be able to bail out the banks without causing their own fiscal collapse. In the UK we get either a banking crisis (one which the government won't be able to bail out) or we get a fiscal crisis which leads to currency crisis.
If default is the answer, we should get it out of the way as soon as possible. No point labouring under the burden of debt for another decade. As Shakespeare wrote, "If it were done when 'tis done, then 'twere well it were done quickly".
12. Deadjune said...
I do not see people demonstarting in the streets, 50 years of brain washing that raising house prices is a GOOD thing won't go away and the few dissaffected and rational people out there just ventilate their anger in insignificant fora like this...
Do you think anyone with real power reads our whining here?
13. thelostdecade said...
all rather extreme drewster
in any event, i find the notion of voluntary bankrupty despicable - we should reap what we've sown