So Gordon Brown is considering intervening in the housing market in order to kick start the economy. This, only weeks, after the Chancellor has told his Cabinet colleagues that the kitty is dry and any additional spending would need to be met from existing budgets. When will this so-called prudent economist ever learn that it is precisely because of government policies that the economy is in the diabolical state it is? Borrowing more money to shore up his socialist dogma has no benefit; other than to convince the most gullible that he knows what he is doing. If Gordon Brown thinks that he can buy his way back into the hearts of the British public then he is more stupid than I thought. Enabling more people to buy over-priced houses they can’t afford with money the banks haven’t got to lend will not get this country back on track. It would take a lot more than that or the prospect of some cheap loft insulation to pull the wool over the eyes of the beleaguered electorate this time (I hope and pray).
The fall in the value of houses, that some have called a crash, is in fact no more than realignment to the rest of the economy. The vastly over-inflated price of property has been fuelled at the government’s encouragement in order to ensure greater and greater income from taxation. Of course the banks have colluded in this by lending money on properties to people who have little or no hope of ever paying it back. I mean, what on earth is a 120% mortgage all about? Even a normal adjustment in the market would make that seem obviously a bad investment for any sane bank. However, sanity is in pretty short supply with Bush in the White House and Labour in Downing Street. Banks on both sides of ‘pond’ have been allowed put the whole world economy in jeopardy in order to fuel a ‘feel good factor’ among their respective populations and distract them from turmoil and incompetence of their administrations.
But never mind we have yet another cabinet member to keep us entertained; with the Schools Secretary going on TV demonstrating healthy cooking for schoolchildren. I wonder, is he the first government minister to be appointed to his post because he has the same name as the language he speaks (educational balls)?
