Clegg on housing
[Re: The ideas emerging from Lib Dem conference dissolve under scrunity, Tuesday]
Nick Clegg, and the coalition more broadly, are failing to pursue sufficient supply-side reform in the housing sector. The reason approved sites are lying idle is because the current planning system limits supply. The really big money is to be made in getting planning permission. It lifts the value of the land, and money can be made without developers having to invest in any actual construction. The only effective way to deal with this situation is to introduce more competition into the housing market. This means removing impediments to developing rival sites.
[Re: Fiscal crisis continues to threaten our struggling economy, yesterday]
The coalition is doing its best to deceive the markets, but growing debt will have a wider negative impact on growth. It’s important that this is realised. Many are convinced that austerity is enough if it convinces the bond markets that the UK can pay its debts. But we must understand that excessive spending (whether on debt interest, or otherwise) is crowding out future prosperity.
The few savings the coalition has made are coming from the wrong places. What’s the sense in ending road building if the money is then splurged on welfare payments?
What is surprising about Libor is that such a deeply flawed model was able to continue unchecked for so long.
The British Bankers Association has given up Libor. It’s realised it can’t both act as a body for bankers, and police Libor rate setting.
There are still huge political risks to the resolution of the Eurozone crisis. A break-up of Spain is just one of them.
The Lib Dems are gloating that they’re in power, but denying responsibility for any bad decisions made under their watch.