Saturday, December 20, 2008

Gordon's housing bubble - just more hot air?

OK, the photo may give you a clue but who do you think said this in October 2005?

"We will have the strength and resolution to take the right long-term economic decisions too.
"Why has it been that at every point since 1997 faced with the Asian crisis, the IT collapse, a stock exchange crash, an American recession, last year a house price bubble, this year rising world oil prices, why has it been that at every point since 1997 Britain uniquely has continued to grow?
"In any other decade, a house price bubble would have pushed Britain from boom to bust.
"In any other decade, a doubling of oil prices would have put Britain first in last out and worst hit by a world downturn.
"I tell you, it is because with Bank of England independence, cutting debt, fiscal discipline and the New Deal this Labour government has shown the strength to take the tough long-term decisions, that inflation is low, interest rates are low, growth has been sustained in every year, and we are closer than ever to the goal which drives us forward: the goal of full employment for our generation.
"Labour, the natural party for economic strength in our country today."

This is the man who has told us that he had brought an end to boom and bust. This is the man who told us that the UK was best placed to weather a global economic meltdown. This is the man who has lied to us for the last 12 years about the economic miracle he has claimed to bring about.

The full video can been seen here on the BBC site. The bubble section is about 5 minutes and 20 seconds in. (Warning: the link is a bit wonky but persevere!)

How confident do you feel in his hands now?