Thursday, August 11, 2011

“..confront the vested interests..”

Statement by the Chancellor of the Exchequer

"But these events did not come out of the blue. They all have the same root cause. Debt. In particular, a massive overhang of debt from a decade-long boom when economic growth was based on unsustainable household borrowing, unrealistic house prices, dangerously high banking leverage, and a failure of governments to put their public finances in order. Unfortunately, the UK was perhaps the most eager participant in this boom, with the most indebted households, the biggest housing bubble, the most over-leveraged banks and the largest budget deficit of them all."

Posted by dill @ 03:05 PM (1886 views)
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6 thoughts on ““..confront the vested interests..”

  • “…a decade-long boom when economic growth was based on unsustainable household borrowing, unrealistic house prices..”

    “On controversial issues such as planning reform we will overcome opposition that stands in the way of prosperity.”

    Now, who was it who was so insistant that the coalition was hell-bent on maintaining the status quo, would prop up house prices come what may, and give in to the NIMBYs on planning?

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  • “But these events did not come out of the blue. They all have the same root cause. Debt…

    In particular, a massive overhang of debt from a decade-long boom when economic growth was based on unsustainable household borrowing, unrealistic house prices, dangerously high banking leverage, and a failure of governments to put their public finances in order…
    Unfortunately, the UK was perhaps the most eager participant in this boom, with the most indebted households, the biggest housing bubble, the most over-leveraged banks and the largest budget deficit of them all…

    All of us in the House must rise to that challenge in the months ahead and confront the vested interests. They are the forces of stagnation that stand in the way of growth.”

    Here, here! Let’s see how long it takes for all of this to be forgotten.

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  • mark wadsworth says:

    Dill, I am amazed. I assumed that your excerpt was a spoof but it actually says that!

    Uncle Tom, that was me. Like I’ve said before, let’s not argue about it, we’ll revisit the topic in a year or two and see whether they are allowing more or fewer houses to be built than the previous lot. First year of Lib Cons, new construction down to 100,000, less than half what it was under Nulab. So far, I am right but I would be delighted if I were wrong.

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  • @Uncle Tom: Now, who was it who was so insistant that the coalition was hell-bent on maintaining the status quo, would prop up house prices come what may, and give in to the NIMBYs on planning?

    There’s little evidence the Government has done anything to help the inflated housing bubble deflate – other than make cuts which are in the process of putting out of work. As for nimbys and planning, isn’t the forthcoming Localism Bill just about that – giving power to local people to override the wishes of the larger majority. It’s interesting to see what kind of rumpus is kicked up by VIs in my part of the South Hams when any mention of ‘affordable’ homes is brought up – mind you, what’s deemed as ‘affordable’ in this area tends to be property around the £180,000 mark, when the average wage in the South Hams – which is inflated by some very high earners, is around £15,000-£18,000 per year.

    Here’s one typical example for you: http://www.dailymail.co.uk/tvshowbiz/article-1160876/Football-presenter-Steve-Rider-scores-big-goal-objecting-homes-poor-holiday-home.html

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  • Gents,

    I think you need to be realistic with regard to planning, and also understand the shortcomings of the status quo..

    ..I’ve just rejoined my local Parish Council after a gap of twelve years. There’s an ‘affordable’ housing project on the go, but it’s been on the go for three years now, and is unlikely to see a brick laid for at least another year yet – I asked to be brought up to speed on the project, and I’m astounded by the raft of documents that have been forwarded to me – close on a thousand pages..

    ..most of it is expensive rubbish – the whole system seems grossly over-loaded with worthless parasitic report-makers..

    For f*cks sake – we need to take a huge step back – sell (or even give) young people a plot of land, and tell them to design and build their own home on it. Give them an option – no architects, no planners, no ‘environmental consultants’ – and no other t*ssers telling them what to do – on condition they can’t sell the property on for at least ten years..

    I’ll bet there’s plenty of takers…

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  • It’s difficult to know where to start with this speech, there are so many half truths, misconceptions and gross oversimplifications. But the notion that the UK could be in a sovereign debt crisis is baloney, a bogeyman being used to force through austerity measures that will result in more inequality and probably rioting down the line. Look at the US. In response to the ratings agency downgrade the bond market actually picked up. The markets know there will always be demand for the dollar, if only because taxes are paid in dollars, and that the sovereign issuer of the dollar is always in a position to pay off its (dollar-denominated) debts. At the level of private debt, what Osborne says makes sense. And there’s the nub? The Tories see the whole nation on an absurdly simplistic but politically popular analogy with a household, overlooking the obvious differences, such as that a household does not collect taxes nor issue its own money supply.
    N

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