{"id":176,"date":"2013-10-19T12:42:51","date_gmt":"2013-10-19T12:42:51","guid":{"rendered":"http:\/\/www.thebizsense.com\/uk\/?p=176"},"modified":"2013-10-19T12:42:51","modified_gmt":"2013-10-19T12:42:51","slug":"britain-opts-for-a-bubble-play","status":"publish","type":"post","link":"https:\/\/www.thebizsense.com\/uk\/news\/britain-opts-for-a-bubble-play","title":{"rendered":"Britain Opts for a Bubble Play"},"content":{"rendered":"

\"Cameron<\/a><\/p>\n

The UK government has \u201clost patience\u201d with austerity, and with a general election two years away, has abandoned it in favour of a new bout of debt creation, \u201ctempting consumers to leverage their balance sheets into a new housing bubble,\u201d suggests Trevor Greetham of Fidelity Worldwide Investment.<\/p>\n

In the UK and other countries that gave priority to tackling high levels of state debt by slashing interest rates, raising taxes and cutting spending, this \u201cfront-loaded austerity failed to trigger the spontaneous private-sector recovery its advocates expected.\u201d<\/p>\n

This lack of economic growth ought to have come as no surprise, as \u201cin a balance-sheet recession banks want to shrink their loan books and consumers want to rid themselves of debt,\u201d so cheap-money policies are ineffective.<\/p>\n

The new home-purchase subsidy programme in the UK amounts to \u201ctempting a new generation of consumers into debt, in the hope the government can improve its own financial position.<\/p>\n

\u201cThe Bank of England\u2019s forward guidance framework is designed to keep mortgage rates low for years, and an expanding range of government schemes is underwriting house prices and mortgage debt directly, using taxpayers\u2019 money.\u201d<\/p>\n

Although starting a housing boom is \u201ca sure-fire way of generating a strong economy,\u201d it means there is a risk of \u201canother house-price crash further down the line,\u201d or a sustained rise in inflation.
\n\u201c
\nNeither outcome represents an appealing prospect for investors.\u201d<\/p>\n

CopyRight \u2013 OnTarget 2013 by Martin Spring<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK government has \u201clost patience\u201d with austerity, and with a general election two years away, has abandoned it in favour of a new bout of debt creation, \u201ctempting consumers to leverage their balance sheets into a new housing bubble,\u201d suggests Trevor Greetham of Fidelity Worldwide Investment.<\/p>\n","protected":false},"author":1,"featured_media":178,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[9,1,144],"tags":[147,148,34,146,145,54],"class_list":["post-176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-news","category-views","tag-austerity","tag-debt-creation","tag-government","tag-investment","tag-trevor-greetham","tag-uk"],"_links":{"self":[{"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/posts\/176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/comments?post=176"}],"version-history":[{"count":2,"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/posts\/176\/revisions"}],"predecessor-version":[{"id":179,"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/posts\/176\/revisions\/179"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/media\/178"}],"wp:attachment":[{"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/media?parent=176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/categories?post=176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thebizsense.com\/uk\/wp-json\/wp\/v2\/tags?post=176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}