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Housing Bubble Worse Than Before The Crash, Says Cable

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Being a Cabinet Minister, why has he waited until now to say anything?

http://www.independent.co.uk/news/uk/politics/exclusive-housing-bubble-brewing-as-prices-become-unaffordable-for-middle-earners-says-business-secretary-vince-cable-9236587.html

Exclusive: Housing bubble brewing as prices become unaffordable for middle earners, says Business Secretary Vince Cable

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Exclusive: Housing bubble brewing as prices become unaffordable for middle earners, says Business Secretary Vince Cable

This one's more than a bubble, this one's a Bubbleloon.

http:/

/www.extremebubbles.com/pages/history-of-big-bubbles

Extreme Bubbles Inc. set the first world record for largest free floating soap bubble on October 9th 2005.

The record setting bubble was 105.4 cubic feet. If the big bubble was filled with water, it would weigh 3.2 tons.

We created the big bubble using our proprietary bubble solution, beeboo Big Bubble Mix, and a custom made two-handled big bubble wand similar in style to the Dip Stix wand.

Read on for a brief summary of the History of Big Bubbles and the artists and inventors who have helped shape the world of big bubbles.

In 1960 inventor Arthur Fulton was granted the first patent on a flexible loop bubble toy. His toy had a ribbon like loop attached to a long rod. This allowed the loop to be compressed and inserted into a small container of bubble solution, then expanded to open the loop and create a large bubble. Arthur called his popular big bubble toy "Bubbleloon".

Yes indeed and it similarly requires a Dip Stix to create it.

Edited by billybong

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I like cable, he's Always been on our side, shame he's usually been made out as a loon for questioning hpi over the years.

Hello brunobald. Welcome. I'm pleased to respond to your first HPC post.

Just to be clear (due to the proximity of your post) the term Bubbleloon wasn't referring to Cable nor was the reference to Dip Stix referring to him. Not this time at any rate :)

I agree it's a shame that some in the government and the VI's pooh pooh his questioning of the housing market. However he is a government minister and despite his questioning of the house price policy in his position as minister he effectively supports government policy and must take a measure of responsibility for the policy.

Edited by billybong

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Hello brunobald. Welcome. I'm pleased to respond to your first HPC post.

Just to be clear (due to the proximity of your post) the term Bubbleloon wasn't referring to Cable nor was the reference to Dip Stix referring to him. Not this time at any rate :)

I agree it's a shame that some in the government and the VI's pooh pooh his questioning of the housing market. However he is a government minister and despite his questioning of the house price policy in his position as minister he effectively supports government policy and must take a measure of responsibility for the policy.

Yes, but he still speaks truth. Coalition is tough, not much he can do without wrecking his authority. At least he's sticking the knife into RBS.

Strange thing about this forum: the premise is moderation, but it's split on tired moral lines - ****** on the left, ****** on the right. The LibDems are having a serious crack at this senseless opposition, but most people still seem up for a fight against their own interests.

HPCers find their ideal girl but are too timid to ask her out. So they turn to some weird radical to live out their fantasy.

Edited by okaycuckoo

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It's very clever of them to have Clegg and Cable in government.

Clegg is so despised after the tuition fee debacle they can wheel him out in support of any policy they'd like people to vote against - AV, Europe, etc.

Cable talks sense on the economy but the public don't take him seriously - he's seen as a senile old lefty and a serial agitator. Remember just a few days ago he was being heavily criticised over Royal Mail. So they can let him out to tell everyone the truth and because of his reputation people will assume he's got it wrong again.

Very useful indeed when you're fighting the war of public opinion.

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'The Lib Dem minister hit back at comments by Kris Hopkins, the Conservative Housing Minister, who told the BBC’s Newsnight programme that rising house prices are a good thing.

Mr Cable said: “I do not agree with Kris Hopkins that rising house prices are a good thing. If you are an owner-occupier who has paid off your mortgage, it is an increase in your paper or real wealth. But if you are a young family trying to get into the housing market and it is unaffordable, it is an extremely bad thing".

Although Tory ministers will be infuriated by Mr Cable’s comments, his warning will be taken seriously.'

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Fudgemaster cable called for more QE in 2011.

In 2009 he called it Mugabenomics

In 2012 he wasn't sure if it worked or had too many negative consequences.

The banks laughed all the way back to their boardrooms.

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Being a Cabinet Minister, why has he waited until now to say anything?

http://www.independe...le-9236587.html

Quite. It's been obvious for some time that a MEGA BUBBLE amongst a certain class of idiots has been developing.

The lib-dems can walk out on the tories at any point and stop this madness.....watch what they do, not what they say.

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https://fullfact.org/factchecks/assessing_the_vince_cable_backlash-1459

re Vince and his prediction of the bubble in 2003

'

On banking regulation, the parliamentary record shows that Mr Cable was concerned with the irresponsible lending policies of banks to consumers. The point is best illustrated by this extended quote from his response to the Queen’s Speech in December 2003:

“The Chancellor’s great claim—which has been vindicated so far, and for which he deserves credit—is that the old economy of boom and bust has gone. However, it has reappeared in a new form. There is a massive boom in credit and debt expansion, and in the housing market.

“A very dangerously unstable position has developed, based on excessive and irresponsible lending by the banking system.

“Something is seriously wrong when a reputable bank, like the Royal Bank of Scotland, can send out a gold card with a £10,000 credit limit to a dog called Monty.”

On another occasion in 2003 he asked Gordon Brown about banking regulation:

“Can the Chancellor confirm that one of the objectives of risk-based regulation… is the prevention of dangerous booms and busts in bank lending? Will he therefore explain why, at a national level, no one is taking responsibility for the often reckless debt promotion by the leading banks and credit card companies?

“The Government and the regulators are either blind or asleep where the banks are concerned,” he added.

While Vince Cable was not warning of systemic problems in the global financial architecture, he was arguing that banks were lending recklessly to consumers who were building up debts they could not afford to repay.

In that sense, his analysis identified in the UK a similar pattern to the problem in the US sub-prime mortgage markets which triggered the global financial collapse.

But, was Mr Cable alone in his warnings about risky bank lending, consumer debt and the housing market bubble?

What others said

Ken Clarke is right to claim that Mr Cable was not alone in warning about debt levels. In November 2002, the former Tory Chancellor issued the following warning to Gordon Brown: “He inherited a stable economy already achieving growth with low inflation. That economy is now being sustained by a housing boom, household debt and public spending at an unsustainable rate.”

Nor was he the only person warning. Conservative Phillip Dunne said in 2006: “The legacy of the Chancellor that concerns me is the problems that will be posed for people who have run up substantial debts that they are unable to pay and the impact on the economy of that debt bubble bursting—something almost too frightening to contemplate.”

Conclusion

Vince Cable was one of the earliest and most consistent politicians warning about aspects of the UK economy which meant that when the financial crisis hit, it hit the UK hard.

However, as this analysis shows he was not alone in or outside the House of Commons in warning along these lines.

Nor were the things Mr Cable warned about the only factors or even the trigger for the crisis.However as also highlighted above, Mr Cable has accepted these points about his predictions. The problem appears to be more to do with those, in the media and his own party, who seek to burnish Mr Cable’s reputation on his behalf.'

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He should know, it's his policy!

If he's so against the Tory housing boom he should resign and force an election.

Put up or shut up Vince you big girls blouse.

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If he was so saavy he'd be heading a big hedge fund and rallying the government to perform via the markets.

Instead he wears tired old suits and badgers on about things he has no control over, all the while sucking on the tax payers teat.

Money for old rope...or Cable.

Fvck Cable.

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If he was so saavy he'd be heading a big hedge fund and rallying the government to perform via the markets.

Instead he wears tired old suits and badgers on about things he has no control over, all the while sucking on the tax payers teat.

Money for old rope...or Cable.

Fvck Cable.

Like most HPC'ers :lol:

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Fudgemaster cable called for more QE in 2011.

In 2009 he called it Mugabenomics

In 2012 he wasn't sure if it worked or had too many negative consequences.

The banks laughed all the way back to their boardrooms.

thanks for that..I didnt think it was my feeble memory that recalled him reversing the sense he usually made whilst that last PM ( cant remember his name either..broom?bum?...I dunno) was in Office.

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Conveniently, Cable has just been discredited thanks to the Royal Mail undervaluation being blamed on him.

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I like cable, he's Always been on our side, shame he's usually been made out as a loon for questioning hpi over the years.

As the most visible advocate for increasing immigration into the UK, is Cable really "on our side"? If the LibDems wanted to do something about HTB, they could. They refused to support boundary changes that would have made Parliamentary representation better reflect popular votes, even after though they promised to do so, why not refuse to support HTB? The Liberal Democrats aren't Liberals (they're more than happy to have the state meddle in peoples affairs) and they aren't Democrats (they don't support a fair, democratic representation in Parliament).

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Hello brunobald. Welcome. I'm pleased to respond to your first HPC post.

Just to be clear (due to the proximity of your post) the term Bubbleloon wasn't referring to Cable nor was the reference to Dip Stix referring to him. Not this time at any rate :)

I agree it's a shame that some in the government and the VI's pooh pooh his questioning of the housing market. However he is a government minister and despite his questioning of the house price policy in his position as minister he effectively supports government policy and must take a measure of responsibility for the policy.

Thanks I used to post 5 years ago as gavztheouch but I lost my password and the account was linked to an old email. So here I am as Bruno and house prices are still mental, what the hell happened.

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If he was so saavy he'd be heading a big hedge fund and rallying the government to perform via the markets.

Instead he wears tired old suits and badgers on about things he has no control over, all the while sucking on the tax payers teat.

Money for old rope...or Cable.

Fvck Cable.

Whenever Vince is on the telly, I can't separate him from the memory of this guy in my head:-

107339693_campbell_300366c.jpg

.

Edited by Jack's Creation

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'The Lib Dem minister hit back at comments by Kris Hopkins, the Conservative Housing Minister, who told the BBC's Newsnight programme that rising house prices are a good thing.

Mr Cable said: "I do not agree with Kris Hopkins that rising house prices are a good thing. If you are an owner-occupier who has paid off your mortgage, it is an increase in your paper or real wealth. But if you are a young family trying to get into the housing market and it is unaffordable, it is an extremely bad thing".

Although Tory ministers will be infuriated by Mr Cable's comments, his warning will be taken seriously.'

Of course the thing they never say is that if the young family or the young people leaving home can`t afford to buy your house it is not really true to say that the owner-occupier has increased their wealth? It is this insistence that the price is the price is the price that annoys me, most ordinary punters do not have cash rich/super rich wanting to buy their property. It is/was a Ponzi scheme and those still in it expecting a big pay out are going to be disappointed. If Vince spoke like this, THEN I would respect him.

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Of course the thing they never say is that if the young family or the young people leaving home can`t afford to buy your house it is not really true to say that the owner-occupier has increased their wealth? It is this insistence that the price is the price is the price that annoys me, most ordinary punters do not have cash rich/super rich wanting to buy their property. It is/was a Ponzi scheme and those still in it expecting a big pay out are going to be disappointed. If Vince spoke like this, THEN I would respect him.

I haven't quite worked the implications of this out yet, but I suspect the pensioners MEWing thing may become a real issue.

There are 1.5% rate mortgages (saw an IO one at that level the other day too) for people who have 50%+ LTV.

Mortgages have been opened out to 65+ age now.

These mortgages are based on EA valuations at current peak.

If there is a correction, the 69 year old won't give a stuff the LTV is 120% now and they have no means to pay it off as they've blown it all on cruises.

Who picks up the tab on this? I've got a feeling a lot of the mortgage activity spike end of 2013 was this.

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I haven't quite worked the implications of this out yet, but I suspect the pensioners MEWing thing may become a real issue.

There are 1.5% rate mortgages (saw an IO one at that level the other day too) for people who have 50%+ LTV.

Mortgages have been opened out to 65+ age now.

These mortgages are based on EA valuations at current peak.

If there is a correction, the 69 year old won't give a stuff the LTV is 120% now and they have no means to pay it off as they've blown it all on cruises.

Who picks up the tab on this? I've got a feeling a lot of the mortgage activity spike end of 2013 was this.

Say someone not working, late 50's takes their pension pot and puts it into BTL.

What happens when they get rental voids?

Too early for state pension, no income, does that mean they can claim benefits?

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I haven't quite worked the implications of this out yet, but I suspect the pensioners MEWing thing may become a real issue.

There are 1.5% rate mortgages (saw an IO one at that level the other day too) for people who have 50%+ LTV.

Mortgages have been opened out to 65+ age now.

These mortgages are based on EA valuations at current peak.

If there is a correction, the 69 year old won't give a stuff the LTV is 120% now and they have no means to pay it off as they've blown it all on cruises.

Who picks up the tab on this? I've got a feeling a lot of the mortgage activity spike end of 2013 was this.

Things get tricky when people need care and when families inherit houses? I can`t see everyone who needs to sell getting their desired price when a whole generation are priced out, and many of them don`t even have a job. The Ponzi has hit the limits of it`s run IMO, government interference will keep the pretence up for a while longer, but not much beyond the next election IMO.

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