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Gordon's Housing Bubble is Bursting

The link is to Norman Lamont's article about the Government's Economic Policy.

I always wondered why there was such a treasury constraint on the building of housing for rent through Social Landlords. I had this theory that it could be as a consequence of trying to push up house prices through scarcity of resource.

In any event having a policy based upon equity withdrawal and ever increasing house prices to drive the economy was always unsustainable.

We are now starting to have to deal with the consequences of this.

The figures of 90-100bn for PSBR are very high indeed. I haven't yet seen a breakdown of this, but it would be interesting to see one. I shall try to post such a breakdown if I find one.

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