Jump to content
House Price Crash Forum
Sign in to follow this  
It is different this time

Liberal Democrats: The Property Market Is Set To Crash

Recommended Posts

http://www.24dash.com/socialhousing/27588.htm

The Liberal Democrats issued a stark warning to homeowners today that the property market is set to crash.

Deputy leader Vince Cable said a decade of mismanagement by Gordon Brown had led to a "collective madness" around house prices which threatened to derail the economy.

Speaking at the party's conference in Brighton, he lambasted the "professional optimists" who had convinced the public that values could keep going up for ever.

"History tells us that bubbles burst; and every housing boom is followed by a crash whatever the papers say," he insisted.

Mr Cable's intervention came as the panic around troubled bank Northern Rock continued, with customers withdrawing billions of pounds in the wake of the "credit crunch" caused by irresponsible lending.

A study has also indicated that younger people are increasingly relying on rising property prices to pay for their retirement.

Mr Cable laid the blame for the crisis squarely at the door of Mr Brown, saying that he had done nothing to prevent the housing market overheating during his 10 years as Chancellor, and now "chickens were coming home to roost".

History demonstrated that the housing "bubble" had to come to an end, he insisted.

"I deeply distrust the professional optimists - the banks, estate agents, government ministers - who seem to believe in an economic version of levitation," Mr Cable told delegates.

"This is something Gordon Brown understood ten years ago when he said in his first budget: 'I will not allow house prices to get out of control and put at risk the sustainability of recovery.'

"But that is exactly what he did. Why? Why did he exclude housing from the measure of inflation? Why did he not give the Bank of England responsibility for this, the most important and destabilising element in inflation?

"Why has he taken 10 years to produce a housing policy? Why was council and other social housing drastically curtailed forcing families into owner-occupation they cannot afford?

"Why was he so frightened of tackling the banks over debt promotion, unfair charges and irresponsible lending?

"As long as the boom has gone on, he has been able to avoid answering these questions but his day of reckoning cannot be far off."

Mr Cable said there was now a widespread belief that the housing market was a "one way bet", which had led "reckless" banks to lend up to six times people's income in mortgages.

"We can see the frenzied signs of collective madness which always accompany an economic bubble," he said. "Until it bursts the bubble has a logic of its own, inflated by uncontrolled credit expansion and rampant speculative demand."

Developers across the country had been buying property and land and often leaving it vacant, contributing to the housing shortage, according to Mr Cable.

"Yet the Government's answer is to blame local councils and planning rules and it threatens to destroy the delicate balance between development and over-development."

Research by the International Longevity Centre indicated that the proportion of 25 to 34-year-olds contributing to pension funds halved between 1995 and 2005, as people increasingly stretched their finances to get on the housing ladder.

well said Libs but where the hell have you been for the last 10 years? A bit too late to ask these questions! Blame game is on as the sh*t finally hits the fan.

Share this post


Link to post
Share on other sites
http://www.24dash.com/socialhousing/27588.htm

well said Libs but where the hell have you been for the last 10 years? A bit too late to ask these questions! Blame game is on as the sh*t finally hits the fan.

to be fair to Vince, he has been banging this drum for a while. However, this is a message that the punters were palpably not ready for until... now.

Share this post


Link to post
Share on other sites

It's the same syndrome as with Cameron's Telegraph article yesterday. To come out with the bearish argument that most of us on this site have accepted for ages while the market still appeared ostensibly healthy would be to risk accusations of getting it wrong and to alienate potential voters.

Share this post


Link to post
Share on other sites
A study has also indicated that younger people are increasingly relying on rising property prices to pay for their retirement.

And these could be the most screwed. I feel sorry for any 1st time buyer who's bought this year.

Share this post


Link to post
Share on other sites
It's the same syndrome as with Cameron's Telegraph article yesterday. To come out with the bearish argument that most of us on this site have accepted for ages while the market still appeared ostensibly healthy would be to risk accusations of getting it wrong and to alienate potential voters.

I've written to vince a couple of times (he's our local candidate) on a few issues. The replies have always surprised me, showing a good deal of intelligence and none of the usual sidestepping associated with Politicians.

I have to agree he has been banging the drums on these issues for a long time now, but without being the leader of the opposition you just don't get the exposure to do this.

It's odd but a snap election now and the Lib Dems would probably run away with it.

Even more odd I have no clue who I would vote for at the next election. Probably the Lib Dems just because their policies would get the country back on track in the short term faster. However I am under no elusion that their policies could give us any kind of competitive edge in global markets in the long term, so its the lesser of three evils :)

(Wonders if the Monster Raving Looneys are still fielding candidates)

Share this post


Link to post
Share on other sites

Very well put and he has being saying this for a long time!

Labour boasting of Low inflation and low Interest Rates when they removed housing from the calculation is ridiculous.

I also noticed for the first time that Vince Cable used to be an Oil Economist which I guess sets him well above the Likes of Gordon Brown who confessed he was rubbish at maths recently (i.e. spin for saying I am rubbish like you lot, being intelligent is something to be ashamed of, vote for me.!)

Share this post


Link to post
Share on other sites
http://www.24dash.com/socialhousing/27588.htm

well said Libs but where the hell have you been for the last 10 years? A bit too late to ask these questions! Blame game is on as the sh*t finally hits the fan.

Completely unfair. Vince Cable, Chris Huhne and others have been arguing this for years. Surely it is not too hard to imagine that the very "professional optimists" in the media he describes were all too happy to ignore him and not give his comments any publicity?

I have seen Vince Cable make similar points in the Commons itself and be laughed down by MPs on all sides.

Share this post


Link to post
Share on other sites
http://www.24dash.com/socialhousing/27588.htm

well said Libs but where the hell have you been for the last 10 years? A bit too late to ask these questions! Blame game is on as the sh*t finally hits the fan.

The whole world is a stage.

The elites know the sheeple are smelling the rat so they now get their left arm to attack the right. Expect similar statements from the CON-servatives soon. It is all business as usual in UK.PLC. Every party is the same as each other.

The elites are going to sacrifice labor to install another corrupt party, when all along they are the ones in charge.

The media will jump in and blame Labour, but all along the banks and the BoE were the guilty ones, and they are going no-where.

Enjoy, watch, and learn Democracy at work.

Share this post


Link to post
Share on other sites
To be fair to both Vince and Cam would anyone have listened to thenm before NR?

All people have seen for the last 10 years is there personal wealth grow at a frightening rate.

Not the point. People that want to govern need to lead.

Share this post


Link to post
Share on other sites
(Wonders if the Monster Raving Looneys are still fielding candidates)

Yes, Screaming Lord MEW of Buy-to-Let is a popular figure at the moment.

Share this post


Link to post
Share on other sites
it is you that wasn't listening

Remind me again who was complaining of unsustainable debt & HPI when HPI was 25% yoy with interest rates were diving faster than Titanic!

They just couldn't afford to spoil the party for their own gain. I can't remember one single politician criticising corrupted Brown 5 years ago although the final writing was on the wall all the time for those who were smart enough to figure it out

Share this post


Link to post
Share on other sites
Guest Popalot
Completely unfair. Vince Cable, Chris Huhne and others have been arguing this for years. Surely it is not too hard to imagine that the very "professional optimists" in the media he describes were all too happy to ignore him and not give his comments any publicity?

I have seen Vince Cable make similar points in the Commons itself and be laughed down by MPs on all sides.

Agreed. He has been the only effective voice of opposition for years. He would do well as LibDem leader. I think it would swing my vote.

Don't you love this bit of his speech:

"I deeply distrust the professional optimists - the banks, estate agents, government ministers - who seem to believe in an economic version of levitation," Mr Cable told delegates. :lol::P

Share this post


Link to post
Share on other sites
Guest AuntJess
to be fair to Vince, he has been banging this drum for a while. However, this is a message that the punters were palpably not ready for until... now.

I agree. People won't take in what does not 'tally' with their view of the world, we have only to look at the resistance to logic shown by the people in various religions, to see that.

As to house prices, I have been patronised and ridiculed for believing that house prices would come down, even though common sense dictated that they rise and fall, increasing a little more each time over the decades....2 steps forward and one step back - so to speak. ;)

People see what they wish to see, until they get a rude awakening.

Share this post


Link to post
Share on other sites
Agreed. He has been the only effective voice of opposition for years. He would do well as LibDem leader. I think it would swing my vote.

Don't you love this bit of his speech:

"I deeply distrust the professional optimists - the banks, estate agents, government ministers - who seem to believe in an economic version of levitation," Mr Cable told delegates. :lol::P

What a great term for VI, one that the shepple can relate to and none too complimentary either, almost sounds loony!

That was the one thought that crossed my mind when FP did the Sky interveiw (and what a great interveiw it was!) will the shepple understand what a 'vested interest' is?

Edited by Sonic the Hedge Fund

Share this post


Link to post
Share on other sites
The whole world is a stage.

The elites know the sheeple are smelling the rat so they now get their left arm to attack the right. Expect similar statements from the CON-servatives soon. It is all business as usual in UK.PLC. Every party is the same as each other.

The elites are going to sacrifice labor to install another corrupt party, when all along they are the ones in charge.

The media will jump in and blame Labour, but all along the banks and the BoE were the guilty ones, and they are going no-where.

Enjoy, watch, and learn Democracy at work.

That's right. In a couple of years you get to excercise your democratic right to vent your fury at Labour by voting for the Conservatives who can then continue to implement the same policies.

Share this post


Link to post
Share on other sites
[/b]

I agree. People won't take in what does not 'tally' with their view of the world, we have only to look at the resistance to logic shown by the people in various religions, to see that.

As to house prices, I have been patronised and ridiculed for believing that house prices would come down, even though common sense dictated that they rise and fall, increasing a little more each time over the decades....2 steps forward and one step back - so to speak. ;)

People see what they wish to see, until they get a rude awakening.

Very true.

Share this post


Link to post
Share on other sites
That's right. In a couple of years you get to excercise your democratic right to vent your fury at Labour by voting for the Conservatives who can then continue to implement the same policies.

democracy: you vote with your wallet.

The masses created HPI by voting for the idea of free money - the idea of taking out a massive loan to make a profit from an inert object, ignoring the chance that prices can fall. Anyone who subscribed to this idea is to blame for whatever fallout follows.

Share this post


Link to post
Share on other sites
Remind me again who was complaining of unsustainable debt & HPI when HPI was 25% yoy with interest rates were diving faster than Titanic!

They just couldn't afford to spoil the party for their own gain. I can't remember one single politician criticising corrupted Brown 5 years ago although the final writing was on the wall all the time for those who were smart enough to figure it out

2005 : http://politics.guardian.co.uk/economics/s...rticle_continue

Liberal Democrat Treasury spokesman Vince Cable said Mr Brown's job was getting tougher as the economy slowed. "Having had the wind in his sails for the last eight years, he is getting into rougher water. His reputation as an economic miracle worker is going to evaporate."

Thats just one. There are several. Bear in mind that Vince Cable and Moses Brown wrote a book together in the late 70's and were very good friends. So up until a few years ago he was a great supporter of Brown. He saw and declared the writing on the wall a lot quicker than his enemies.

Share this post


Link to post
Share on other sites
to be fair to Vince, he has been banging this drum for a while. However, this is a message that the punters were palpably not ready for until... now.

Agreed Vince has been telling it like it is for some time now , he's not a " Johnny come late what have we done type " , saw him on the news today , very passionate and angry about it all came across as a Eric Pebble type .

Share this post


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.

Guest
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.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • 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.