Wednesday, March 18, 2009

Gordons Dirty Secret:

The secret behind Gordon Browns 'no more boom and bust' decade of growth is that the entire consumer boom was built on borrowed money, drawn by millions of homeowners against their ballooning property value, and funded by foreign investors and speculators not British savers.

How the facts contrast with this promise:

"I am determined that as a country we never return to the instability, speculation, and negative equity that characterised the housing market in the 1980s and 1990s.
Volatility is damaging both to the housing market and to the economy as a whole. So stability will be central to our policy to help homeowners. And we must be prepared to take the action necessary to secure it. I will not allow house prices to get out of control and put at risk the sustainability of the recovery."

He said that in his maiden budget speech in 1997. He promised lots of other things which never happened either, but this is one of the most blatant, and damaging.

What we have witnessed in these last few years is exactly the kind of boom, and then bust, we were promised Bank of England independence and New Labour had abolished forever.

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