The Icelandic solution
As fas as I can determine, the headline is not a joke. "The Icelandic government has announced that it will write off household mortgage debt in order to kickstart the economy. Under the plan, every household in the country will have â¬24,000 worth of debt written off. The move was part of the election manifesto of the Progressive Party, led by Prime Minister Sigmundur David Gunnlaugsson." Let's see if any UK politicians will raise this idea. H/T to Frank Hovis on the forums.
Keeping sterling higher and boosting domestic demand
The bubble is providing a wave of spending power in the UK while at the same time their sterling purchases act against the sterling devaluation and the much vaunted requirement for exports. House prices did fall for foreign purchasers by up to 40%, so they are looking at different charts in their own currencies. When it comes to an end, there will be a great deal of sterling washing around, and their won't be any concurrent support for sterling because the foreign buyers will eventually tap out. Not just for that reason but also as deliberate policy, sterling IMO is once again going to bear the weight of the crash. Carney won't raise rates. If he did he would clear the market and even more borrowing would take place, low rates stop the market clearing.
It's the Economy, Stupid!
NIMBY's of the week -
PLANS for 4,000 homes on green-belt land near a Notts village will lead to "traffic chaos" and "urban sprawl", it is claimed. Members of action group Tollerton Against Backdoor Urbanisation attended a Rushcliffe Borough Council meeting to protest against plans to build the houses north of the village. The group concedes that more houses will have to be built in Rushcliffe to meet Government targets. Rushcliffe has been asked to find space for 13,150 new homes by 2028. Across Notts, the city must find room for 17,150 new homes, Gedling 7,250 and Broxtowe 6,150 over the next 15 years.
CGT changes in Autumn Budget
What Osborne Should Have Said
"Our system of tax is too complicated. Our tax code is 11,000 pages long. That is too long. By about 10,990 pages I'd say. It makes blunders and fraud inevitable. But it's worse than that. Our system of tax is immoral, it is inconsistent and it creates inequality. So I am simplifying it. Here's how ...
P/E ratio with no E spells trouble
Camerons housing policy working as intended.
A FAMILY of four that have been forced to live in a cramped bedsit for seven months donât even have enough space to put up a Christmas tree. Paul Adams and his family were put into the North Tenth Street bedsit by Milton Keynes Council earlier this year while they waited for a suitable social housing property with two bedrooms. But despite several attempts by Mr Adams to get in touch with the council, he has heard nothing back and claims he knows of friends who have had their housing needs met before him, partner Carla Levitt and sons Rylan, four, and Kaden, eight months.
Looks like BTL will get even more popular after tomorrow
Another overhaul of state retirement system to be announced in Autumn Statement means that people now under 50 will have to work longer than they had previously thought, even just a year ago. Under rules to be unveiled on Thursday, the state pension age will vary according to average life expectancy. It will be set to ensure that people spend no more than a third of their expected lifespan drawing a pension. Treasury projections suggest this will save the state up to Â£400âbillion over the next 50 years. The changes mean that the state pension age would rise to 68 will be brought forward to the mid 2030s, with another increase to 69 expected by the mid 2040s. For perspective Â£400BN = 8 x HS2. Comments section should be excellent.
Public debt has risen 50% to gain 1.1% growth.
The latest infographic outlines the changes in the economy since the coalition government formed in 2010. In 2010, the Chancellor projected that the coalition would slash the structural budget deficit to zero by 2016. Three years on, net public debt has risen as a consequence of the governmentâs measures to reduce the deficit. While there is some hope in the figures - and we are sure they will be projected in nothing but glowing glorious ways, Brits are drawing down savings at record rates to cover soaring costs of living and the UK's debt-load is surging.