Jump to content
House Price Crash Forum

Recommended Posts

PFI is excluded, as are various projects the government gives an explicit funding guarantee on. (like the Channel Tunnel Rail Link 2)

In other words, the real future public sector budget requirements are considerably higher than those reported by HM Treasury. In the absence of ongoing economic boom there are only three solutions:

1. Cut public spending- can't really see Labour going for that, but in the unlikely event it did so, would have a major deflationary effect on economy and probably therefore on house prices

2. Raise taxes- possible if Gordon prevails over Tony, would reduce net earnings, probably having a mild deflationary effect on house prices

3. Increase govt borrowing- probable given that Tony is still PM and would prefer it to 2, would likely require higher interest rates to draw in the investment, probably having a major deflationary effect on house prices

So Gordon who has been the bull's best friend since 97 may now be the bear's best friend as the situation he has engineered almost certainly will require corrective actions that will put downward pressure on house prices!

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.