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Anatole Kaletsky - Osborne's house price boom likely to work
Turnbull2000
Posts: 1,807 Forumite
http://blogs.reuters.com/anatole-kaletsky/2013/06/13/when-illogical-policy-seems-to-work/
Enjoy the ride folks!
The effectiveness of public policies and their ultimate desirability is in practice judged not by their motivations, but by their results.
Which brings me to the real subject of this column: the improving outlook for the world economy and why many economists and financiers cannot bring themselves to acknowledge it. Let me begin with a striking example anticipated in this column back in March: the boom in house prices and debt-financed consumption that the British government is pumping up in preparation for the general election in May 2015.
In the British budget announced on March 20, George Osborne, the British finance minister, announced a spectacular pre-election giveaway: a program of highly leveraged mortgage lending guaranteed by the government with the stated intention of pumping up British household debt by up to £130 billion. The enormity of this number can be gauged by translating it into an equivalent stimulus relative to the size of the U.S. economy: $1.7 trillion.
Enjoy the ride folks!
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Comments
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Turnbull2000 wrote: »
Leverage the peeps till they squeak."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
i dont think anyone can really deny this is going to push up house prices
whether or not its a good thing, is what is being questioned0 -
i dont think anyone can really deny this is going to push up house prices
whether or not its a good thing, is what is being questioned
And as the article points out...twice, it's cynical, hypocritical and manipulative.
So that question seems to have been answered by this particular writer.0 -
Graham_Devon wrote: »And as the article points out...twice, it's cynical, hypocritical and manipulative.
So that question seems to have been answered by this particular writer.
You have missed out that the electorate are so pig stupid it will probably work.0 -
Turnbull2000 wrote: »Enjoy the ride folks!
All opinion. Nothing based on fact.0 -
Graham_Devon wrote: »And as the article points out...twice, it's cynical, hypocritical and manipulative.
.
And as it also points out.... twice, it looks like it's going to work.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »And as it also points out.... twice, it looks like it's going to work.
Work for why?
Politicians?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
HAMISH_MCTAVISH wrote: »And as it also points out.... twice, it looks like it's going to work.
Maybe "work" in terms of creating some inflation that will disproportionately benefit people who Tory/ukip swing voters, i.e. middle income old and middle aged, but "whether a housing boom proves politically expedient for the Cameron government and whether it is good or bad for the British economy’s long-run structure has no bearing on whether it will actually happen"FACT.0 -
It's pretty worrying that our government's best guess at an economic rescue plan is another housing bubble.
Firstly because it won't work. Secondly because that dead horse has been flogged so much its all bone now. And thirdly because it will just hurt the most vulnerable.0 -
ruggedtoast wrote: »It's pretty worrying that our government's best guess at an economic rescue plan is another housing bubble.
Housing transaction levels, sales and purchases, along with mobility of the workforce are key to economic recovery.
Those that believe that is some form of longer term boost to the housing market may well be very disappointed in 5 years time.0
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