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Banksters And Liar Loans May Have Done Permanent Damage

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http://www.timesonline.co.uk/tol/news/politics/article7150196.ece

From The Times
June 15, 2010
Economy may never recover from banking crisis
, warns OBR
Francis Elliott, Gráinne Gilmore
The economy, more damaged by the banking crisis than previously admitted, will grow more weakly and may never fully recover, the new Office for Budget Responsibility (OBR) said yesterday.
The conclusion adds billions of pounds to the total that George Osborne must find if he is to restore the public finances to health.
Public sector workers were warned yesterday that taxpayers could no longer afford their “unreformed, gold-plated pension pots” as the Lib-Con coalition Government used the first OBR forecasts to step up efforts to prepare voters for next week’s Budget.

No garter for Gordon then?

However, the VIs will continue to try to convince the sheeple that more HPI and more debt will be good for us all.

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Here's an interesting comment

Let's run this argument in reverse: if public sector cuts will depress house prices, then a decade of runaway public sector spending on salaries will....?

For years we've blamed the "house price bubble" on a combination of irresponsible borrowing, second home owners, bankers and landlords. Now a plausible alternative explanation is emerging, particularly in those areas such as the South West where house prices seem so desperately out of tune with local salaries:

In the far south-west of England, also unusually dense with public sector staff...the relatively high pay of these buyers, when compared with other jobs in the local area, has meant they've been able to purchase larger homes

I've often wondered why Gordon's spending spree didn't result in runaway inflation. The answer is that to a large extent it did--in the housing market. The rest of the money leaked out on imports and growing the Chinese economy so we were able to have a low-inflation economy but with runaway house prices. Truly we never had it so good..

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Here's an interesting comment

Let's run this argument in reverse: if public sector cuts will depress house prices, then a decade of runaway public sector spending on salaries will....?

For years we've blamed the "house price bubble" on a combination of irresponsible borrowing, second home owners, bankers and landlords. Now a plausible alternative explanation is emerging, particularly in those areas such as the South West where house prices seem so desperately out of tune with local salaries:

In the far south-west of England, also unusually dense with public sector staff...the relatively high pay of these buyers, when compared with other jobs in the local area, has meant they've been able to purchase larger homes

I've often wondered why Gordon's spending spree didn't result in runaway inflation. The answer is that to a large extent it did--in the housing market. The rest of the money leaked out on imports and growing the Chinese economy so we were able to have a low-inflation economy but with runaway house prices. Truly we never had it so good..

This partly explains Wales and the North of England also. In my part of the World most of the 'bigger' houses in the 'nicer' areas are owned by public sector workers. I know several of them who have become BTL and second home types also.

If those areas are then in 'a nice bit of countryside' they also atract second home owners from London.

Ties in with thet Savills' report.

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http://www.timesonline.co.uk/tol/news/politics/article7150196.ece

From The Times
June 15, 2010
Economy may never recover from banking crisis
, warns OBR
Francis Elliott, Gráinne Gilmore
The economy, more damaged by the banking crisis than previously admitted, will grow more weakly and may never fully recover, the new Office for Budget Responsibility (OBR) said yesterday.
The conclusion adds billions of pounds to the total that George Osborne must find if he is to restore the public finances to health.
Public sector workers were warned yesterday that taxpayers could no longer afford their “unreformed, gold-plated pension pots” as the Lib-Con coalition Government used the first OBR forecasts to step up efforts to prepare voters for next week’s Budget.

No garter for Gordon then?

However, the VIs will continue to try to convince the sheeple that more HPI and more debt will be good for us all.

Of course it won't recover for ages now, they didn't allow the collapse and the deflation required to generate the recovery.

We'd be recovering now from about 20% unemployment, house prices at 1998 levels and would have a Tory government with a massive majority if Gordon had let the banks fail and broken them up instead of bailing them out and pulling the QE rabbit out of the hat.

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The way I few the majority of the public sector is like a bunch of ravers who roll up in the field next door to your house, come in steel all your boose, hook up to your electricity and then start partying for their own personal enjoyment while giving you sleepless nights.

Now, I have know objection to raving, far from it, but, public sector, if you want to have a party, bring your own beer, supply your own electricity and conduct your activities in a manner where you are not going to give law abiding citizen’s the hump.

It’s high time this pi$$ take stopped.

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http://www.timesonli...icle7150196.ece

From The Times
June 15, 2010
Economy may never recover from banking crisis
, warns OBR
Francis Elliott, Gráinne Gilmore
The economy, more damaged by the banking crisis than previously admitted
, will grow more weakly and may never fully recover, the new Office for Budget Responsibility (OBR) said yesterday.
The conclusion adds billions of pounds to the total that George Osborne must find if he is to restore the public finances to health.
Public sector workers were warned yesterday that taxpayers could no longer afford their "unreformed, gold-plated pension pots" as the Lib-Con coalition Government used the first OBR forecasts to step up efforts to prepare voters for next week's Budget.

No garter for Gordon then?

However, the VIs will continue to try to convince the sheeple that more HPI and more debt will be good for us all.

what makes me laugh is how this comes as a big surprise to the media and masses.

Gormless Brown Aide to Gormless: The economy is wrecked but you've got an election coming up.

Gormless to Aide : Fiddle the figures. Even if (ha ha if... WHEN) I lose I need to make it look as though I fixed the economy.

The above emboldened text gives a hint as to why the true state of the economy was not made public.

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So I see you morons are saying the banking crisis was caused by a few public sector workers earning more than you do working in McDonalds?

LOL

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So I see you morons are saying the banking crisis was caused by a few public sector workers earning more than you do working in McDonalds?

LOL

No, the banking crisis was caused by public sector workers being asleep at the wheel.

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http://www.timesonline.co.uk/tol/news/politics/article7150196.ece

From The Times
June 15, 2010
Economy may never recover from banking crisis
, warns OBR
Francis Elliott, Gráinne Gilmore
The economy, more damaged by the banking crisis than previously admitted, will grow more weakly and may never fully recover, the new Office for Budget Responsibility (OBR) said yesterday.
The conclusion adds billions of pounds to the total that George Osborne must find if he is to restore the public finances to health.
Public sector workers were warned yesterday that taxpayers could no longer afford their “unreformed, gold-plated pension pots” as the Lib-Con coalition Government used the first OBR forecasts to step up efforts to prepare voters for next week’s Budget.

No garter for Gordon then?

However, the VIs will continue to try to convince the sheeple that more HPI and more debt will be good for us all.

...off course... the bad lending and poor strategic management by Gordos banking friends at NR, HBOS and RBS etc were imported from America ......what a simple man he was ....how did we land up with him ..?.....talk about serfs and the dictator.... :rolleyes:

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Here's an interesting comment

Let's run this argument in reverse: if public sector cuts will depress house prices, then a decade of runaway public sector spending on salaries will....?

For years we've blamed the "house price bubble" on a combination of irresponsible borrowing, second home owners, bankers and landlords. Now a plausible alternative explanation is emerging, particularly in those areas such as the South West where house prices seem so desperately out of tune with local salaries:

In the far south-west of England, also unusually dense with public sector staff...the relatively high pay of these buyers, when compared with other jobs in the local area, has meant they've been able to purchase larger homes

I've often wondered why Gordon's spending spree didn't result in runaway inflation. The answer is that to a large extent it did--in the housing market. The rest of the money leaked out on imports and growing the Chinese economy so we were able to have a low-inflation economy but with runaway house prices. Truly we never had it so good..

The government I think largely made two crucial errors... the first as you say was to allow runaway public spending. You need to metnion Blair though more than if not as much as Brown in this regard.... what went on was effectively was that money was found for every idea and every idea became a priority... mandelslime admitted as much when he said " clearly when the budget is reduced the number of priorities for expenditure is reduced"....... so Blair and Brown effectively gathered ideas and then proceeded to splurge the record tax revenues they were getting on every single one of them, and when the money got short they raised taxes more than 100 times. They had NO budgetary discipline.. if they had restricted expenditure to real priorities rather than effectively buying votes through funding everything and grwoing the govt to such a large degree we could well have survived the second mistake.

The second mistake was not to call a halt to things in 2005... by things I mean the excessive wholesale funding of borrowing that was really taking of then..... to give them some credit not one govt did so despite evidence to the contrary........ this mistake has broadly had two effects. the first is that we have had to reflate the banks with public cash ( this could have been funded by cash from the good times if this had not been splurged) and the second is that we have an economy used to surviving on a great deal more funding availability and to withdraw this as the wholesale funding has gone has created wides[read p[roblems... if the govt had saved in the good times then perhaps some of this could have been alleviated through the creation of some form of national lending bank or somesuch to take up at least some of the slack created by the erradication of wholesale funding.

Blair and brown are both to blame.......... this could have worked out so much better if they had not decided to defraud the electorate and start to buy votes through funding false priorities.

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I think there is third mistake, abharrison, and it is possibly the one that will have the most dangerous legacy.

We should have used the last 13 years to shift up several gears as regards the overall skills and abilities of the populace. The need for this was signposted back in the late 80 and early 90s when it became obvious Britain was heading towards a post-industrial state, and we would need to evolve into a highly specialised "precision economy" in order to survive.

Indeed, our manufacturing industry has already evolved into the state. Look at the most successful areas: precision engineering (surgical tools through to sub-seabed engineering), precision design, precision printing (banknotes), precision coding (the computer gaming industry), precision chemicals ... the problem is that we haven't shifted the skills and abilities of the general populace in line with these shifts in real wealth, highly-specialised economic output. The key would have been to keep the population on an even keel, maybe even encourage a reduction, and then educate the young so they are able to work within these high-value industries -- in social terms, it is far better to have a smaller number of high-earning individuals paying tax they can afford than to have a large number of low-paid workers paying tax they cannot afford.

Instead, Labour concentrated on surface ideological social issues, and undermined the rigor that still remained within the state education system (which is still designed on a, more or less, Victorian model of creating workers for industries and an economy that no longer exists). Not only that, but they did not consider the impact of the importation of further numbers of low-skilled, poorly educated individuals into the country. They simply did not consider, at any point, the economic future of the country, nor how it would affect the populace; they were totally blind to any of these essential considerations.

As a result, these high value industries find it difficult to recruit workers with the relevant specialised skills, our postgraduate departments are full of international students who have been educated with the required rigor in their home countries, and our unemployment rate and welfare costs are millstones around the neck of the country.

When you consider the problem at base, nearly half of all school leavers in an annual cohort in this country are pretty unemployable at any reasonable level -- for the simple reason they don't have basic level GCSE language and numeracy skills. The qeustion then becomes ... how are these young people going to live?

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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