Crash Gordon Now Copying Failed Old Tory Ideas

Lamont told Sky News last night “Far be it from me to criticise myself, but I do not think that the Stamp duty holiday we introduced made any difference at all”. Quite, why would anyone hurry to save 1% on Stamp Duty when they can wait and save even more.

Property is down 10%, falling at 1% a month, it could easily be down another 10% next year – why catch a falling knife? The graph below (via Stumbling and Mumbling) shows the negligible effect of the Lamont Stamp Duty holiday.The left-of-centre Chris Dillow has a surprisingly laissez faire conclusion – let prices fall. The market will find equilibrium.


“I will not allow house prices to get out of control and put at risk the sustainability of the recovery.”
Gordon Brown, 1997 Budget Statement.

Unfortunately Gordon has to do something, he promised an end to the economic cycle, he promised endless growth, low unemployment, low inflation and a new Britain.

The economic cycle is back, the benevolent economic circumstances not of his making have gone and we are, according to the OECD, the worst positioned Western industrialised nation to weather the tough times. Inflation is rising and unemployment is hitting Thatcherite levels, your economic plans have crashed, Gordon.

Trot Along to Socialist Unity’s Session with Newsnight’s Economics Editor Tonight

Newsnight’s Paul Mason managed, as some noted last night, to analyse previous economic downturns by going from Barber (Tory) to Howe (Tory) but skipping Callaghan (Labour) when Britain had to get an emergency bailout from the IMF.

It does seem odd to have a Trotskyite sympathiser as the business reporter on the BBC’s flagship news and current affairs show. It is all very well him briefing his comrades tonight on “The Recession – What does it mean for us?” (Suspect it will mean that capitalism is in terminal crisis since it has always been according to the Trots who sell newspapers).

Guido just wishes Comrade Mason would concentrate less on supporting the workers revolution and more on making sure that Newsnight manages to reliably report whether the FTSE is up or down on the day. How hard can that be?

Not Much of a Stimulus Package

Guido has never met a tax cut he hasn’t liked, so the stamp duty holiday is welcome, but why not make it permanent? The £175,000 limit means it is not going to apply to anyone in the South East or for that matter anyone wanting a family home up north. So not really going to help many hard working families is it? Why not raise the threshold up to £250,000 or even £500,000 for a year?

The sale-and-rent-back scheme will apply to only 6,000 home owners in danger of being repossessed. That is fewer than the government-owned bank Northern Rock will probably repossess this year…

Silly Stat Porn

August is a slow month and traffic was a mere 552,316 page views, from 427,305 visits off 88,101 absolute uniques. This was double last year’s traffic. Most popular story of the month was Is Brown Bonkers?

Guido promised to thank by way of Google juice the owners of the Bianconi Red Lion Restaurant and Guesthouse in Durrow, Laois for their hospitality as well as the Castle Arms Hotel in Durrow, Laois for the full Irish breakfasts and Guinness.

Guido is indebted to his advertisers including Standpoint Magazine, Total Politics Magazine, More Than Insurance, and Microsoft. The wine cellar is filling up faster than Guido can empty it. Almost.

+++ Cleggs Expecting Baby +++

Good news for the Cleggs, a baby due in February.

Nick is the same age as Guido, fortysomething fatherhood has its blessings. Sleep however is not one of them…

Newsnight Economic Analysis

Guido is quite excited. Have had a few Guinnesses. Newsnight are going to do some analysis of the foreign exchange market (they read about it on Guido). These are the same people who called it upsy daisy Friday. (Analysis of Ms Fawkes aged 3, more accurate.)

UPDATE : Ooh – Crick says people really are “pissed off”.

Crisis, What Crisis?

Sterling is down 14% against a basket of currencies since Gordon Brown became PM and Alistair Darling took his old job as Chancellor. Oil is priced in dollars…

Flashback : Labour Government Sterling Crisis

If Britain, as a result of Gordon’s financial genius, is so well placed to weather the international financial storm, why is the pound at an all time low versus the euro? Why is it falling against a broad basket of currencies? Sterling was even down against the Pakistani Rupee last week…

“It does not mean that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.”

Prime Minister Harold Wilson, 19 November 1967

Harold Wilson came out with that famous statement after the pound was devalued 14% against the dollar. The pound is down some 28% against the euro since the launch of that currency. unemployment is heading towards two million. The seventies are back under Brown. After a run on a bank, we now have a run on the currency. Could we see the return of flared trousers and exchange controls?

Chancellor Blinky

Can you imagine Ed Balls as Chancellor? He certainly can and if the papers are to be believed it is he who Darling reckons is briefing against him. Ed is possibly the only minister who the public, if they know

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Rich & Mark’s Monday Morning Views

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+++ S&P Predicting UK Housing Market to Fall 30% By 2009 +++

Bloomberg TV is tonight reporting the Standard & Poors credit rating agency predicting a fall of 30% in UK house prices (from 2007 peak) in 2009.

Back in April Charles Bean, the Bank of England’s Chief Economist, gave an under-reported

[…]

+ READ MORE +

"John McCain Left Both His First Wife and Mitt Romney for Beauty Queens."

Made Guido laugh. Mitt Romney gave Guido the creeps…

[…]

+ READ MORE +



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Sky News ask a “Labour representative” where the local St George’s Day events are. He replies:

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