Budget 2013 live....

Graham_Devon

And finally from me (for now!)

Peston has a blog entry on this. He states it's surely better to try and rebalance the economy away from it's boom and bust consumer spending cycle and towards investment and exports.

But something key which he explores which others don't appear to be doing yet is how hard it will be for the government to withdraw such a package.

In doing so, Peston explains that the shock of removing such massive stimulus from the market could be pretty severe.

And as he states, it's almost as if the government is stating that the bank is wrong to have become more prudent.

Just a 20% fall in house prices would cause taxpayer losses on a grand scale. Banks on the other hand are working on this assumption and protecting themselves from such a scenario.#

And what have we all missed? The budget provided massive stimulus for the housing market.....but nothing for business loans. Houses are suddenly deemed a better investment than proper wealth creating entrepreneurs. Are we building our economy on buying and selling houses to each other?

http://www.bbc.co.uk/news/business-21881174

The commentary just keeps getting worse!

ukcarper

You would have thought that before announcing a scheme in a blaze of publicity they would know how it was going to work and have finalised the fine detail.

ukcarper

Graham_Devon wrote: »

Are we building our economy on buying and selling houses to each other?

http://www.bbc.co.uk/news/business-21881174

The commentary just keeps getting worse!

I suppose it's better to base your economy on selling houses that we have built using mainly UK materials than selling and buying non UK built products.

　

　

dryhat

Now the wheels seem to be coming off this proposal, it is nice that the HPI nutters have quietened down a bit today compared to their salivating yesterday and this morning.

Graham_Devon

You'd think so.

They are starting to look like labour when their "do anything for votes" period happened towards the end of their reign in government.

Graham_Devon

ukcarper wrote: »

I suppose it's better to base your economy on selling houses that we have built using mainly UK materials than selling and buying non UK built products.

　

　

I'm sorry?

Are you being serious?

ukcarper

Graham_Devon wrote: »

I'm sorry?

Are you being serious?

Slightly tongue in cheek but it's the lesser of two evils, what do you see the economy being based around. It would be nice to see our manufacturing resurrected but I can't see that happening


　

HAMISH_MCTAVISH

Graham_Devon wrote: »

And as he states, it's almost as if the government is stating that the bank is wrong to have become more prudent. !

The banks are wrong in not lending, but they've been partly forced to by BASEL 3.

This gets around that problem, and gets rid of the "unintended consequences" of traditionally prudent, sensible, and historically normal 5% or 10% deposit mortgages becoming almost impossible to get.

Mortgage rationing isn't "prudent". It's irrational and it's killing the economy.

BACKFRMTHEEDGE

Graham_Devon wrote: »

The commentary just keeps getting worse!

Yeah but.....you voted for these people!!!

Graham_Devon

BACKFRMTHEEDGE wrote: »

Yeah but.....you voted for these people!!!

Which people are those?