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The Masked Tulip

"made Matters Worse"

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According to a news item just on Channel 4 News a report from the BOE after the Tories had stopped stamp duty back in the early 90s made matters worse for the falling housing market.

Oh dear.

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I find it hilarious that they are choosing the wrong options and it is so obvious.

The sensible thing now - the bold thing - would actually be to engineer speeding up the housing crash and ensuring that it was a sharp, dramatic, painful but SHORT crash allowing the economy to recover in time for the next election.

All they are doing now - and it is obvious that they have no idea about Economics - is trying to buck the Markets, to alter basic Economics and ideas of stamp duty holidays, etc, etc, will simply prolong this slow, painful crash long enough for it to be at its worst about the time the next election must be held.

Apart from that the majority of Brits, who in actual fact will and are unaffected by house prices, will become very angry that their taxes are being used to keep afloat a housing market and those who have been greedy.

It is a tragedy but it is obvious that the highest in our Government have not a clue about the way Economies work.

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I find it hilarious that they are choosing the wrong options and it is so obvious.

This is new Labour, as you said in another post, they have not said they will ro or will not do anything.

Instead of talking to the BOE they talk to the papers.

Edit:

Edited by maxwell

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Does anyone know the details of the 1990s stamp duty holiday e.g. which dates did it operate, was it announced for a finite period or ongoing?

Stimulate and control

Stamp duty has traditionally been seen as one way of controlling or stimulating the housing market.

For example, there was a 'stamp duty holiday' between December 1991 and August 1992 when the market was low.

As the market started improving, minor increases in stamp duty were introduced in 1992 and 1993.

But there were no significant increases until the Labour party took office in 1997.

Since then there have been four increases - and it is an increasingly lucrative source of revenue for the Exchequer.

The Labour government also abolished mortgage tax relief (Miras) in April 2000.

The CML now wants the government to act, and wants it to increase the stamp duty threshold from £60,000 to £85,400.

http://news.bbc.co.uk/1/hi/business/1918707.stm

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The sensible thing now - the bold thing - would actually be to engineer speeding up the housing crash and ensuring that it was a sharp, dramatic, painful but SHORT crash allowing the economy to recover in time for the next election.

So how would you speed up the housing crash? Raise taxes to pay off the deficit?

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C4 added this was because it set back the eventaul recovery

I don't understand why this would be, though

Because it is a measure to re-inflate the housing market, which never works at this stage of the cycle. All it does is draw out the crash over a longer period.

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So how would you speed up the housing crash? Raise taxes to pay off the deficit?

No, I would apply my knife in the most efficient, perhaps most ruthless, way - raise IRs.

A year quarter should be enough, no more than 4 months, to bring inflation under control, strenghten Sterling and bring foreign capital flowing into the UK. Of course, it would be painful for those heavily in debt or 'over-extended' but it probably would clear out the dross as it would cause a collapse in house prices.

However, once those 3 or months were over, certainly no more than 6, the economy would begin growing again. Houses would be affordable and the millions of us who did not climb on the big bubble balloon would be buying affordable housing and spending in all those furniture and clothing shops, etc, etc. Heck, things could be so rosy by the time of the 2010 election that Brown wins with a landslide.

Alas, I know full well that they have neither the imagination, the brains nor the balls to do what is now needed. Perhaps they will come around to the idea in a year or so but by then it will be too late to save them.

My only concern, because I am a decent chap, is the Human toll that such inceases would cause. Sadly, no matter what happens now those heavily in debt are going to suffer one way or another. It is just a case of whether the rest of us suffer with them also. Btw, I hate saying this but I think it has to be said now.

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Remember at all times.... they are not looking for a cure, they are simply seeking to 'be seen to be on the voters' side at these difficult times'.

That is the criterion for any policy from these jokers.

True. They know the game's up, and are working on being "seen" to do something.

The "International" nature of their defence against critics will only hold for so long.

However, as i've said before, Labour would be far better (as mentioned above) embracing the short sharp reduction approach. At least they could then approach the next general election coming out of a downturn / recession, rather than still sitting in one.

PS: For clarity, i'm NOT a NuLabour supporter, and can't wait for them to get hammered at the next election.

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The Labour government also abolished mortgage tax relief (Miras) in April 2000.

Er, no. MIRAS was abolished by Lawson in the '88 budget. He was a Tory Chancellor.

Only 12 years out though. :rolleyes:

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Er, no. MIRAS was abolished by Lawson in the '88 budget. He was a Tory Chancellor.

Only 12 years out though. :rolleyes:

I don' t think that's right

IIRC, In 1988 Nigel Lawson abolished "double MIRAS" for couples - but MIRAS relief was not fully abolished until 2000, although it was gradually reduced in the last few years

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According to a news item just on Channel 4 News a report from the BOE after the Tories had stopped stamp duty back in the early 90s made matters worse for the falling housing market.

Oh dear.

That isn't even the worst part. It is trailing it as a possible. Why would anyone complete now if they think that stamp duty might be abolished in a couple of months. TRailing it is economically totally incompetent. I suspect that within a day or two they'll have to come out with a definite answer. If that happens, then it will show that the media have complete control of events and that Brown's government has totally lost grip on events...

They'll have to bring back Campbell.

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My only concern, because I am a decent chap, is the Human toll that such inceases would cause. Sadly, no matter what happens now those heavily in debt are going to suffer one way or another. It is just a case of whether the rest of us suffer with them also. Btw, I hate saying this but I think it has to be said now.

This is all about saving lenders; the government will say warm fuzzy vote-winning things about borrowers but they will actually rescue lenders. See how many borrowers they rescue (except indirectly, as a result of rescuing lenders).

Frankly I don't care that much either, if some liar's fraudulently obtained mortgage goes sour and they get repossessed. I do care if the above results in widespread bank failure.

(typo)

Edited by huw

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That isn't even the worst part. It is trailing it as a possible. Why would anyone complete now if they think that stamp duty might be abolished in a couple of months. TRailing it is economically totally incompetent. I suspect that within a day or two they'll have to come out with a definite answer. If that happens, then it will show that the media have complete control of events and that Brown's government has totally lost grip on events...

They'll have to bring back Campbell.

This just shows how leaderless, economically inept and scared this Govt is. They are so afraid of another '10p income tax increase' for the millions of people earning peanuts PR disaster that they now appear to be leaking policy ideas to see which ones are liked and which ones are ridiculed. It is no way to run anything least of all a country.

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This just shows how leaderless, economically inept and scared this Govt is. They are so afraid of another '10p income tax increase' for the millions of people earning peanuts PR disaster that they now appear to be leaking policy ideas to see which ones are liked and which ones are ridiculed. It is no way to run anything least of all a country.

so cr@p at everything - even at politics, now

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This just shows how leaderless, economically inept and scared this Govt is. They are so afraid of another '10p income tax increase' for the millions of people earning peanuts PR disaster that they now appear to be leaking policy ideas to see which ones are liked and which ones are ridiculed. It is no way to run anything least of all a country.

Shows they are on the ropes, and that they've lost control of the media and news cycle. Whether you like him or not, that was what Campbell was a master at controlling.

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However, as i've said before, Labour would be far better (as mentioned above) embracing the short sharp reduction approach. At least they could then approach the next general election coming out of a downturn / recession, rather than still sitting in one.

I disagree, I don't think there is anything they can do to go into the next election with any kind of economic prosperity or feel-good-factor.

Brown missed his only chance last year, when he failed to call an election (the only chance being that he would have lost, and Cameron could have taken the blame).

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  • 396 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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