Monday, Dec 21, 2009

George Osborne on Tory policy

Telegraph: Rising IR Must be avoided

He promises cuts to appease foreign investors and prevent IR from taking off, thus helping the home owner. However, this will impact just as strongly on HP as public sector jobs are lost and salaries across the board are restrained.
Still the right way to go.

Posted by nomad @ 10:51 AM (2402 views)
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15 Comments

1. hpwatcher said...

I can't see thinking like this really helping too much.

Interest rates NEED to rise, to encourage people to save rather than spend.

Monday, December 21, 2009 11:07AM Report Comment
 

2. wdbeast said...

The question remains;

Do Osborne and Cameron have the bottle to do the right thing, impose the austerity measures, make the cuts in public spending, crash house prices etc?

I don’t think they have!

Monday, December 21, 2009 11:11AM Report Comment
 

3. cat and canary said...

...As Moody's, the rating agency, said this week: "AAA countries will probably not have the luxury of waiting for the recovery to be secured before announcing credible fiscal consolidation plans."

... what was it you said Gordon? .. about spending your way out of a depression?

Monday, December 21, 2009 11:14AM Report Comment
 

4. nomad said...

The next post by cynicalsoothsayer discusses the other alternative.

Monday, December 21, 2009 11:31AM Report Comment
 

5. drewster said...

The one thing that all politicians learned from the Black Wednesday screw-up of 1992 is that voters hate raising interest rates, even if it's in the country's best interest. That's why the politicians are doing everything in their power to keep rates low.

Monday, December 21, 2009 12:11PM Report Comment
 

6. mrflibble said...

If nothing else I'm hoping a Tory government will bring some stability to the currency. House prices, although a worry, are not our biggest worry at the minute. Browns policy of keep betting the nations finances on Number 16 at the Roulette Table in the Intergalactic Casino based on Mars are proving non viable. The trouble is each time he looses he prints up some more money and placed the same bet all over again...

I don't believe the Tories will want to crash house prices any more than Labour, but if the currency goes bang then so will the rest. The best way to keep the zombie housing market alive is on low interest rates, but long term I've no idea how this can be maintained given the brutal multiplier between the average income and the average house price.

We either need wages to move up to housing or housing to move down to wages.

Monday, December 21, 2009 12:45PM Report Comment
 

7. This comment has been removed as it was found to be in breach of our Blog Policies.

 

8. hpwatcher said...

Well then, if no-one will raise interest rates, a currency crises is the only outcome.

Monday, December 21, 2009 01:01PM Report Comment
 

9. cat and canary said...

drewster,

you're right, but do you think Gordon miscalculated badly by propping up the property bubble at all costs? Its clear that the majority of folks think he's a pillock despite the rise in house prices! Me thinks the public is not quite as "simple-minded" as Gordon believes.

Tax rises are perhaps equally as unpopular. And from reading comments from newspaper articles across the political spectrum, I would also say getting Britain into a mountain of debt is also pretty unpopular too!

I wonder how many voters would opt for a straight-talking politician, not matter how bad the news was?

Monday, December 21, 2009 01:03PM Report Comment
 

10. inbreda said...

"straight-talking politician"

contradiction in terms methinks

Monday, December 21, 2009 01:37PM Report Comment
 

11. stillthinking said...

It isn't just the 200/month on a 150K mortgage though, its also the 2500/year/worker (or worse) required to deal with government debt.

The average homeowner faces a relative rising cost for debt servicing because disposable income is going to shrink. I don't think a lot of people will have enough to cope. Labour still effectively restrict wages, social housing subsidies for those in expensive housing areas are a de facto subsidy for employers in those areas. Imported labour keeps wages down.

2010 is going to be a disaster for the UK.

Monday, December 21, 2009 02:08PM Report Comment
 

12. shipbuilder said...

10. stillthinking said...
"It isn't just the 200/month on a 150K mortgage though, its also the 2500/year/worker (or worse) required to deal with government debt.

The average homeowner faces a relative rising cost for debt servicing because disposable income is going to shrink. I don't think a lot of people will have enough to cope. Labour still effectively restrict wages, social housing subsidies for those in expensive housing areas are a de facto subsidy for employers in those areas. Imported labour keeps wages down.

2010 is going to be a disaster for the UK"

All public spending, such as health, infrastructure and so on is a de facto subsidy for private business, which is why they like it, despite all the calls for 'free' markets.

Monday, December 21, 2009 02:33PM Report Comment
 

13. Peter said...

One of the reasons this crisis happened is because interest rates were held artificially low by Nulabor...This allowed people to get huge loans for stuff they couldn't really afford, while saving collapsed.

Now we are told that Osborne will do everything to...er...keep interest rates low.

Oh dear.

Monday, December 21, 2009 04:11PM Report Comment
 

14. dbc reed said...

All this geezer has got to say is that the Tories will do anything to stop your mortgage going up by 200 a month.Sooner or later ,they will say its a straight choice between an extra 200 on the mortgage or vote for us to slash public services.Nothing about providing good well-paid jobs.This is Home-ownerism at its destructive worst.

Monday, December 21, 2009 07:33PM Report Comment
 

15. Fra Paolo said...

"straight-talking politician

contradiction in terms methinks


Because voters punish straight-talking politicians with electoral defeats.

Monday, December 21, 2009 09:25PM Report Comment
 

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