This is in an FT email this morning:
Amazing isn't it? We now have a Chancellor who recognises he is so incompetent he has to ask the Bank of England to counter his excesses of folly.
I wish it could have been made up.
The sad reality is it's true.
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They fact that he is looking to a monetary solution rather than fiscal shows just how economically illiterate he is. Martin Wolf was also tearing him to shreds again.
I sent this letter to the FT:
It was truly shocking to learn from Mr. Gascoigne (More trouble with housing
bubbles, 24 September) that the value of UK building stock (excluding land) was a
mere £1.5 trillion.
Apart from the shocking comparison with Italy, France and Germany, since the
total value of our houses is £5.5 trillion, this means that land value represents
more than two thirds of the average house price.
Most credit is secured by real estate, which largely churns second-hand homes.
Is not the land element crowding out real investment?
Indeed – but until people realise this there will be no opposition to this state of affairs. Until people realise that houses are about somewhere to live and be economically active from -then we are stuck in a ‘groundhog days’ situation, repeating the same problem ad infinitum. If osborne is an example of the produce of the top private schools -then clearly the fees are not worth it, nor a fraction of them!
North of London the housing market hasn’t recovered or showing anything of a boom. If you include inflation, which of course you have done, then you will notice many people still in negative equity.
Its just new money from overseas that has helped boost up London and the south East
Only partly true according to:http://www.independent.co.uk/property/house-prices-rise-at-fastest-rate-in-more-than-three-years-8843390.html
I am more than a little disappointed by the lack of innuendo about the title of the post.
That bit goes without saying!
In the BBC series on fabrics, I was reminded that Osborne is a name associated with expensive wallpapers. These cover up bare or even ugly walls with pleasant to look at designs or patterns. But if and when they grow stained and mouldy or the patterns fade then difficult decisions may have to be taken.
Problem is that Osborne is papering over the cracks with nothing that is pleasant to look at or (for most people) to live with!! In fact they seem to come ready stained to give the effect of living in an early Victorian world!!
The source of my information. Maybe I didn’t see the colours well.
http://houseprices.landregistry.gov.uk/thematic-map
http://www.bbc.co.uk/news/uk-scotland-scotland-business-24297003
I think the commentwas more to do with Scotland starting their own.
At least they have put in place limits so that speculators are ruled out but i feel this cliche about the ‘ladder’ (which is now rungless) should be expunged from the English language!
I definitely don’t think Osborne recognises he is incompetent or has asked the Bank of England to counter his excesses of folly. One of the most characteristic features of the products of our top public schools is their absolute certainty that they are right, even when they are obviously wrong.
I think this was the result of a “scrap” behind the bike sheds which little George lost. Basically, having spent however much on appointing Mark Carney, he is now unsackable for at least 2 years. So when Carney (thank God) said what we’d all been thinking:
“Your Help to Sell at Inflated Prices Scheme must be the single dumbest idea to hit my radar since why not bet on Ian Paisley becoming Pope”.
George has had to cover his lost face by saying he always wanted the BoE to be ultimately responsible. So he can go on being completely irresponsible.
Osborne-never knowingly disinterested.
Osborne scares me because he is, unquestionably, the most political Chancellor we’ve had.
There have been hopelessly incompetent Chancellors before, Norman Lamont springs to mind. Osborne is the first I can recall that would not hesitate, if he were told an action would be disastrous to the economy but beneficial to Conservative party ratings, to go ahead & do it.
Well, actually, we know that because that’s what his funding for “Help to sell your house at a ridiculously inflated price” scheme is.
I see that Allister Heath, the resident right wing economist of City AM agrees with you William; he actually says “There is no problem in the housing market that this housing subsidy won’t make worse.”
And this from someone who is no friend of Labour.
The fact that the extension to Help to Buy is now being rushed through as a response to the Labour poll bounce so it’ll start 3 months early, only confirms that this is a blatantly political move. The fact that it’ll almost certainly end in a disastrous house price bubble that the taxpayer will end up paying for is utterly disgusting.