Sunday, October 28, 2007

Darling says house prices will crash

Lenders reject Darling's attack

Chancellor Alistair Darling said that house price rises were "unsustainable" and lenders should ensure borrowers "have not overstretched themselves". Uhm did he check with his boss before saying this??

Posted by who stole my pension? @ 06:04 AM (1927 views)
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19 thoughts on “Darling says house prices will crash

  • Did anyone hear the money box programme itself?
    http://www.bbc.co.uk/mediaselector/check/media/avdb/news/business/audio/127000/127462?size=au&news=1&nbram=1&nbwm=1&bbram=1&bbwm=1&bgc=6699CC&lang=en

    The CML rep was the best – no they had not lent irresponsibly, they had
    “provided new products to meet needs. given choice to
    customers, used better information about consumer behaviour and credit references
    from agencies well (so not reliant on e.g. self-certification). Provide the choice
    to enable a million extra customers…”
    BBC – If you hadnt let people borrow at these levels demand would have been lower..
    CML – “Repos are due to people overextending themselves on ‘other’ credit….”

    .

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  • Stable door, horse, bolted? The government have known that HPC was unsustainable for AT LEAST 5 years. So why now are they saying “we told you so”? Beggars belief really.

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  • I suspect Darling is positioning himself against forseeable pricing problems in the house market. When prices go down and accusations come his way, he can say “..in October 07, I told the lenders to be careful”. Darling’s advice (as Chancellor) comes very late, strong caution should have been given by Gordon Brown, when he was Chancellor, 5 years ago!

    Those with long memories will remember similar statements by Darling distancing himself from the messiness of the rail industry. It’s called being a politician.

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  • Simply refer back to the off the cuff remarks made by fast Eddie before the Treasury sub committee looking at the first ten years of the MPC. This whole situation was knowingly engineered by the BOE and the Chancellor, and it must have had the full official endorsement of the government, possibly of parliament. Put chillingly simply, they knew that what they were doing would result in a massive increase in personal endebtedness and an equally massive bubble in asset ‘value’, yet they went ahead and did it saying that the problems that were bound to ensue were problems for the MPC/BOE/Govt in the future. El Gordo was not going to give a clear warning of dire consequences ahead because that would have spoiled their cunning plan.

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  • Iguana I believe this is the quote from Eddie George back in March(!) amazing that such a shocking admission wasn’t screamed out by BBC, ITV, C4 etc, all supposidly reputable news organisations.

    “We knew that we were having to stimulate consumer spending; we knew we had pushed it up to levels which couldn’t possibly be sustained into the medium and long term. But for the time being, if we had not done that the UK economy would have gone into recession just as has the United States. That pushed up house prices, it increased household debt … my legacy to the MPC if you like has been `sort that out’.”

    The url is http://news.sky.com/skynews/article/0,,30400-1256664,00.html

    So David20040_0 stick that in your pipe and smoke it. Our economy is built on p*ss and wind, I’d look harder into emigrating if I were you as once this all comes crashing down you’ll find that even the new immigrants will head for countries which have REAL economies e.g. a stable and growing manufacturing base.

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  • I think that’s it, iguana.

    In 2003 Eddie George stated that the house price boom was engineered. Gordon Brown also said in 1997 that he would not allow house prices to accelerate out of control and threaten growth.

    One Chancellor later and one Bank of England governor later, an about face policy reversal has been executed under our noses.

    Parliamentary investigation anyone?

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  • Should Of Banked It says:

    Parliment should of addressed the housing price issue long time ago. I wonder what percentage of politicians have invested in property?…I believe this should be investigated?.
    In my eyes, all politicians are responsible, along with the financiers.

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  • pity that as they are voters – he will not tell borrowers to be careful.

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  • “he will not tell borrowers to be careful”

    Anyway, I don’t think it would work ; would be like explaining to a dog “not taking the sugarcube on its nose”.

    The risk is on the lender’ side, so it’s for them to take care.

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  • Shame this report is a week old BUT interestingly it does show the thinking of the chancellor on housing. He seemed fairly clear in saying that HPI was bad for the individual and bad for the economy. Can’t see him pressurising the MPC for a rate cut to bail out the housing market in these circumstances.

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  • eyeoftheweasel says:

    I suspect 5 years ago, with the Iraq situation etc just starting up, Gordon probably thought his party probably wouldn’t still be running the country after the next general election. All he had to do was delay the ensuing economic mess past the election then blame the state of the economy on the by then governing Conservatives. As a result Blue Labour bask in a landslide victory at the general election after that. Don’t know what his plans are now.

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  • planning4acrash says:

    Gordon Brown doesn’t run the country, bankers and corporations do.

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  • Expect a reckless scorched earth economic policy over the next few years (bailing out banks to the tune of £20 billion and rising – a perfect example) as the forces of reality close in and the scammers hide in their beleaguered bunker.

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  • “Let me issue and control a nation’s money, and I care not who writes its laws” – Meyer Rothschild (1743-1812)

    Although give Gordon his due. He has been quietly positionning us in the worst possible position for about 10 years.

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  • I notice Silky Teflon (Blair) has got himself some nice little numbers lined up along with a cushy little job or two. It really galls me that these two have done this country up like a kipper for their own financial and personal gain, especially Blair who like an expert poker player got out when the cards weren’t in his favour.

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  • G.B’s hidden complaint (from himself and others) is: I am right and the world would be a better place if everyone listened and obeyed me (chronic anger -2).

    A.D’s hidden complaint is (from himself and others -4): I am always loving but others don’t love me as much as I love them (chronic grovelling appeasment).

    T.B.’s hidden complaint (from himself and others) is: I am a superior person and everyone is jealous of me (chronic covert hostility -3).

    A.D is just doing as Starlin G.B tells hime to do and say. G.B and his Golag A.D will terminate their relationship in a big punch-up and what will follow is a1930’s type crash!

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  • Where is it that Darling said house prices will crash?
    House prices rises being unsustainable does not equal crash.

    Please correct me as to where he (Darling) says house prices will crash.
    Don’t get me wrong I have no time for the silver fox or anybody with anything to do with any other property VI.

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  • 11. denzil said…He would never say that they will crash, he has only issued statements that point in that direction. Has has done this, he is only covering the backside of G.B. Please wake up and go to the bottom of the page of and download the free E-book by Ruth Minshull entitled: How To Chose Your People. 1972: http://www.goldcenturypress.com/authors.php?id=5

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