Monday, April 14, 2008

Stability and Prudence. Brown’s Housing Boom gone Bust

Home loans: it's looking even worse

Today Gordon Brown declared that "every effort of mine, every day that I wake up" is about steering the economy away from recession.At every point whenever there were world downturns, people ask the question, can the British economy come through this? I understand that people ask the question. But we are on the side of the home owner and business owner."

Posted by yoyo1 @ 03:55 PM (1886 views)
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29 thoughts on “Stability and Prudence. Brown’s Housing Boom gone Bust

  • Our PM says: “But we are on the side of the homeowner and business owner”

    Does this mean he is not on the side of the employee and renter?

    and “All my efforts are to make sure that we can help homeowners try to buy homes”

    Supporting a second home-owning democracy?

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  • How to disenfranchise the majority of the population in one fell swoop.
    This confirms that, as far as the establishment is concerned, the only objective for anyone in the UK should be to own a home at any cost.
    It also begs the question on what was he concentrating over the last 10 years or so? Nintendo economics?

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  • Perfect Storm says:

    With the credit crisis on one side and inflation on the other the economy is going to take a beating no matter who or how thy roll with the punches.
    More disturbing still is the increase in food costs around the world which will create social unrest and imigration as everybody needs to eat.
    It’s all rather depressing!

    PS

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  • I’m old enough to watched – sometimes with interest – the performance of seven prime ministers.

    I cannot recall any of them – even in their worst moments – being so utterly lacking in conviction, so bereft of ideas

    He wanted the top job for so long, yet now he’s there he seems completely dispirited

    – I’m reminded of King Louie’s song in The Jungle Book:

    …I’ve reached the top and had to stop
    And that’s what botherin’ me…

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  • mark wadsworth says:

    Now that the expression ‘property porn’ has finally gone mainstream, how long will it be before ‘price crash porn’ is in common usage? This article is pure PCP, and I must admit I read it with great glee.

    Also, I second all the comments above!

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  • I bet Cherie Blair can barely contain her glee at the predicament Gordon now finds himself in after 10 years of Teflon Tony’s getting away with murder.

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  • He (Brown) is really digging his own grave and not simply with a shovel either, he has a JCB at full throttle.

    Brown is quoted on the BBC (and implied in this article) to have said the economy is his sole focus. He is the prime minister for Gawd’s sake, the economy should be the focus of Darling and in part the MPC, what it really should NOT be is the sole focus of the PM.

    Yesterday I commented Brown would no longer be PM by the end of summer, based on today’s comments from him, I’m bringing my estimate through to mid-summer.

    The bloke is wandering around completely punch-drunk and should hit the canvas fairly soon, by canvas I mean resign. It is doubtful whether his ego would let him resign therefore senior statemens of Labour should ensure he hits the canvas and really quick, his bumbling incompetence scares me.

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  • Paranoia Blue says:

    U T Well said! I’ve seen even more.
    I’m just so worried about the aftermath of a decade of total economic incompetence. Especially when our “leaders” appear to be totally oblivious to the outcome of their rash fiscal decisions, in regards to the redistribution of our money! Heaven help us all. ATB

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  • Brown had it easy for ten years on the back of falling interest rates, now his economic management has been exposed to the masses for what it is no wonder he says that “every effort of mine, every day that I wake up” is about steering the economy away from recession.

    Steering! His hands have been all over the steering wheel for the last 10 years!

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  • @ UT (3) – I have also over the years watched 7 PM’s (Mike Yarwood in the 70’s imitated Heath & Wilson week in week out on his show) and fully agree with your comments – when will GB wake up to the fact that you need more than repetition of the same old weary lines to retain credibility and respect and hold office as PM.

    I now think we’ll see the start of some bitter Labour in fighting with a possible challenge from Milliband – GB is too proud and stubborn to stand aside.

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  • “city economists described the figures as “a pretty horrid set of data” that further complicated the Bank’s delicate balancing act. They will also dismay the Government, where ministers are desperate for the Bank to act quicker to help boost Labour’s grim poll ratings.”

    ……so, sod all to do with economic stability and helping the great British public…all about poll ratings. This government is a sham and a disgrace, boot them all out and replace them with the front bench of either of the other two parties. Pure self preservation, to hell with economic stability.

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  • Today’s Daily Mail

    Gordon Brown is like a “scared rabbit in the headlights”, a senior Labour MP said today. Ian Gibson urged the Prime Minister to rescue his leadership by taking a firmer line on policies. “He’s a bit like a scared rabbit in the headlights and he should not be,” the MP who has represetned Norwich North for 12 years said today.

    I’ll now check the odds at the bookies for how long they think Crash Gordon will last as PM

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  • This time next year they will be begging Blair to come back.

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  • The game is up for Gordo…only a matter of time, IMHO.

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  • @bystander: Its exactly this sort of situation that party politics results in, there should be more free votes, party whips should be abolished and the finest and most able politicians from all parties should be put forward in a government of national unity to sort the whole mess out. In a democratic country party politics is past its sell-by date, MP’s should represent their constituents not the narrow minded interests of political parties, especially this current Labour administration with its abhorrent Stalinesque approach to Government.

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  • Howard Archer of Global Inshite will not be satisfied until the base rate has been cut to zero and Sterling’s value with it.

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  • speculatorone says:

    Plus on the radio today the news has been saying the PM has summonsed the banks to his office to answer for what and why we are experiencing the current economic problems?

    He has been robbing the till for ten years and now his game is up its someone else who is to blame, sums him up really..

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  • planning4acrash says:

    Enuii, voter reform would not suit the boom & bust financial system. The b(w)ankers need scapegoats and first past the post gives the electorate a sense that they can partake in radical change.

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  • little professor says:

    It’s not all Brown’s fault. The global economy is going down the pan, there’s little that the prime minister of one island economy could have done to stop it.

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  • mark wadsworth says:

    On Channel 4 news just now, apparently, a lot of Labour MPs have signed a letter telling Crash Gordon to go forth and multiply. Obviously, nothing will come it, for the time being, but it’s a promising start.

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  • tyrellcorporation says:

    LP ‘The global economy is going down the pan’ – No it’s not, more than half the World is booming. It’s just western economies which are in deep do-do. They’re unproductive, poorly motivated, over-paid and have to pay for insane social security systems and state pension provisions. They’re mired in debt have falling educational standards, rising crime rates, crumbling infrastructure and weakening currencies.

    With regard to the specific problems of the UK I put the blame fairly and squarely at the door of No10 (TB and now GB). You feel he could not stop the economic downturn – possibly, but how about preparing for a possible downturn when times are good?!? This man spent like there was no tomorrow and unfortunately we are going into an economic winter with some worn out Primark underpants to keep us warm!

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  • planning4acrash says:

    Yer, Mark, but your Tory party does not provide voters with any hope. As we all know, New Labour is Thatcherism in sheep’s clothing. If the Tories did provide a progressive and united alternative, they would already be in power. BUT on ALL the issues, your party is with Labour. Cameron would go further to shore up the mortgage market, the lack of a decent opposition is why we went into Iraq, your party is supporting the blocking of an independent review of the BAE scandal, Tories are not putting up any decent policies for anything Boris Johnson is a complete and utter joke, and not a funny one at that. So I wouldn’t feel too good. The best the Tories will get is a hung party because of their ineptitude.

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  • planning4acrash says:

    Most of the baby boomers remember the Tories cutting interest rates and taxes in the run up to elections and raising them after. Yes, Labour is more subtle in its ways but is fundamentally the same, albeit more sophisticated at thieving from the electorate.

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  • “..there’s little that the prime minister of one island economy could have done to stop it”.

    LP,
    I agree the global economy in the west is sinking. However, Gordo tweaked the figures and claimed the kudos for all the growth when he know it was built on a housing bubble. He said he would not let asset values get out of hand in his first budget speech.

    Without revelling in “doom & gloom”, I forsee that a lot of folk could get hurt. Not all of them are wicked BtLers.

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  • little prof said:
    >>It’s not all Brown’s fault. The global economy is going down the pan, there’s little that the prime minister of one island economy could have done to stop it.

    Agreed! However, what really is his fault is that National debt has soared during his “miracle economy”. Research from The Centre for Policy Studies indicates that public debt may be as high as £1.3 Trillion, this figure includes public sector pension liabilities. And to add to that we can toss in £100bn thrown at Adam Applegarth’s GCSE business studies coursework aka Northern Rock. Again, during Brown’s stewardship of the miracle economy the personal tax burden of individuals living & working in the UK is at it’s highest since the doomed Labour government of the 70’s.
    Expandable income has decreased during Labour’s ten years of Government and a greater percentage of people are now living in fuel poverty.
    To top it all, as soon as HPI is no longer able to fund his economic miracle, his economic miracle turns to dust.
    And I havn’t even got started on Brown’s ever flexible “Golden Rule”, CPI, RPI and his demented repetative ramblings of, “growth, economic stability”………

    Yes, you are right, the credit crunch cannot be simply be blamed on Brown but he has so much to answer for, the general public are turning away from Brown and with good reason. The main reason being is that he is painfully out of his depth as PM and also I think there is some resentment from the British public that the man representing the Country was not voted into power by them.

    I’m more than happy to read about the good things Brown has done and his strengths but one seldom finds anything positive about him.

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  • LP
    I agree, the government does not have the power to stop the cycle now. However it could have tried to intervene during those years of dishonesty (2006-2007) with media headlines such as ‘house prices to rise 40% in 3 years’, but that’s hindsight!

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  • ‘Crash Gordon’ – that’s the best one yet. I find it very funny to see this incompetent ass heading for a big fall ! The huge tragedy are the many thousands of ordinary people who are going to suffer because of his mis-management of UK plc. I can only hope that he has been got rid of before any sort of important and dangerous international incident crops up on the world stage.

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  • So El Gordo is spending every waking hour in contemplation of whatever? Some of our regular readers will recall that the current economic state in the UK, was engineered by the BOE/MPC as was confirmed by fast Eddie the former BOE head when he appeared before the Treasury sub-committee at their tenth birthday bash. The BOE can only have been acting with the full knowledge and support of the then Chancellor. Whist admitting that their actions in setting consistently historically low interest rates would create a financial crisis at some point in the future, Eddie went on to say that this would be a problem for the people then in post to deal with.

    Well, as we know fast Eddie has long gone into the world of big pensions and consultancy fees, but lo and behold, the Chancellor who acted with fast Eddie to create our current crisis is still here, none other than El Gordo. What is more Gordo tells us that he spends his every waking hour contemplating the problem. Given the number of years of contemplation that have now passed, it would be reasonable to assume that some sort of conclusion might have been reached. We must therefore conclude that either he cannot reach any sort of conclusion, or that he has been spending his every waking hour contemplating something entirely different.

    Any suggestions?

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  • mark wadsworth says:

    P4AC, what makes you think I am a Tory? As it happens, I joined UKIP in protest over last year’s Electoral Commission case, that’s a different topic.

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