"Any sane person should worry about what will happen when IR's rise"

Graham_Devon

Vince cable speaks up again!

Vince Cable has warned the economy is being destabilised by booming house prices and any sane person should worry about what is going to happen when interest rates rise as the economy returns to normal.

The business secretary also warned that household debt in relation to income is set to become significantly higher in the UK than almost anywhere else, and contains serious dangers that represent "a real, real, real worry" for policymakers and homeowners.

Cable said: "In the next few years we are going to get back to high levels of household debt in relation to income, significantly higher in the UK than in almost any other country. A lot of this is due to booming house prices. And that contains serious dangers, not least the fact the large numbers of people taking on mortgages at considerably more than three times their income are going to face higher interest rates when we return to normality." He added: "It is a real, real, real worry."

He does though, appear to have changed tact on help to buy, now falling in line with his party peers and suggesting it's not really an issue....though it must be noted he is clearly speaking about HTB1 and doesn't seem to mention HTB2.

http://www.theguardian.com/money/2014/may/19/vince-cable-rising-house-prices-destabilising-economy

CLAPTON

Vince Cable is a member of the government

the main reason for high debt is because his government hasn't created an environment that leads to more house building rather than higher prices.

Libdem seem to have no viable policies for higher house building.

Have to say, none of the local political leaflets for the local elections, mention the need to build more houses.

Bantex_2

CLAPTON wrote: »

Vince Cable is a member of the government

the main reason for high debt is because his government hasn't created an environment that leads to more house building rather than higher prices.

Libdem seem to have no viable policies for higher house building.

Have to say, none of the local political leaflets for the local elections, mention the need to build more houses.

A few of the more "right wing" leaflets have said that by stopping immigration there will be more houses to go round.

Seabee42

Bantex wrote: »

A few of the more "right wing" leaflets have said that by stopping immigration there will be more houses to go round.

It wouldn't provide more houses to go round unless we build more but it would certainly stop the situation continuing to get worse.

princeofpounds

He does though, appear to have changed tact on help to buy, now falling in line with his party peers and suggesting it's not really an issue....though it must be noted he is clearly speaking about HTB1 and doesn't seem to mention HTB2.

Cabinet members have a doctrine of collective responsibility. He has to be positive about it, even if he doesn't like it, or he should leave the cabinet.

http://en.wikipedia.org/wiki/Cabinet_collective_responsibility

His earlier 'mistaken' grumbling is rather the coward's position.

Or that of the pragmatist, if you like, if he thinks it's simply not a big enough issue to be resigning over (and I'd agree with that - but I would have shut up in that case, not leaked discontent).

wotsthat

Honestly, I'm not worried in the slightest about interest rates going up.

I think the insane are those who think we should be losing sleep about it.

It'll be fine.

Graham_Devon

wotsthat wrote: »

Honestly, I'm not worried in the slightest about interest rates going up.

I think the insane are those who think we should be losing sleep about it.

It'll be fine.

Whislt I don't for a minute doubt that politicians such as Vince wouldn't be delighted and take great comfort in knowing that you will be fine, there is something that I just cannot put my finger on that suggests the economy is a little more than the little island that is wotsthat.

wotsthat

Graham_Devon wrote: »

Whislt I don't for a minute doubt that politicians such as Vince wouldn't be delighted and take great comfort in knowing that you will be fine, there is something that I just cannot put my finger on that suggests the economy is a little more than the little island that is wotsthat.

Oh for sure. Point is I don't think Cable really thinks anyone is insane for not worrying about IR rises - he's just chasing headlines as usual.

I just discount whatever he says as nonsense whether I agree with it or not. He's an irrelevance and next year will reach his shelf life date.

Graham_Devon

wotsthat wrote: »

Oh for sure. Point is I don't think Cable really thinks anyone is insane for not worrying about IR rises - he's just chasing headlines as usual.

I just discount whatever he says as nonsense whether I agree with it or not. He's an irrelevance and next year will reach his shelf life date.

So what hes suggesting, i.e. interest rate increase have the power to destabilise the economy, has absolutely no substance?

As for the "chasing the headlines" bit. It was a private speech. "Hoping" that it may be recorded and then reported seems an odd way to "chase headlines" when he could have simply gone straight to the media.

wotsthat

Graham_Devon wrote: »

So what hes suggesting, i.e. interest rate increase have the power to distabilise the economy, has absolutely no substance?

If the village idiot manages to put his shoes on right feet one day it doesn't mean his opinion on footwear suddenly becomes worth paying attention to.

wotsthat

Graham_Devon wrote: »

As for the "chasing the headlines" bit. It was a private speech. "Hoping" that it may be recorded and then reported seems an odd way to "chase headlines" when he could have simply gone straight to the media.

Can't beat a private speech to get your message out there.