This article sums up quite well why we’re seeing the recent world stock market falls.
Unsurprisingly, I blame it all on Gordon Brown. If the BoE were able to track the correct rate of inflation (RPI, not CPI) then we’d have had
higher interest rates,
thus steadier house price growth,
thus less house equity-funded buying,
thus steadier financial market growth,
thus much less of these mortgage-backed derivative securities spread around everywhere and
thus far fewer problems with them going belly up with everyone running for cover.
Gordon Brown’s ‘No more boom and bust’? What a joke. The housing market in the US is crashing and the UK will follow. Rents in the UK are apparently going up because people are resigned to not buying.
Time to get out, I reckon, to somewhere with a sensible government. You can vote Gordon back in if you like, but really it doesn’t matter, the UK has had it’s cake and eaten it, and the next government will have to clear it all up.
