Letters to the Editor - 30/06 - Bubble-mania, World Cup, Best of Twitter

Bubble-mania

[Re: Are the Bank of England’s mortgage lending restrictions likely to prove ineffective? Thursday]
An interesting debate, but I’m unnerved by how casually commentators and economists throw the word “bubble” around without giving much thought to what they are actually saying. Would a rise in base rates cause the housing market in London to suddenly crash? It’s not clear that this is the kind of credit-induced speculative frenzy that most assume. Foreign demand is playing an enormous role, and this demand is based on solid fundamentals – the capital is a financial centre with an advantageous geographical position.

Caroline Morris

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World Cup

[Re: What Keynes can teach us about England’s World Cup failure, Wednesday]
The author puts his finger on the central problem with international football in years to come. Clubs own these players – they pay, nurture and train them as part of a freely negotiated contract. Yet a monopolistic governing body demands that, for a certain number of games each year, the clubs must hand over their expensive assets to a different manager so they can be flown to the other side of the world and fouled by inferior opposition. There will come a time when the clubs’ patience runs out – Fifa’s days are numbered.

Martin O’Connell

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BEST OF TWITTER

Very significant Civitas report on FDI finds UK membership of Single Market has no lasting benefit.
@RuthLeaEcon

With consumer confidence at a nine-year high in June, the backdrop for further robust growth is solid.
@EY_ITEMClub

Growing generational divide on immigration: half of pre-war generation say it is an issue, only 1/4 of Gen Y.
@BobbyIpsosMORI

Bookies cut odds of David Cameron being replaced as PM in 2014 from 10/1 to 8/1.
@LordAshcroft