Cameron’s Tories Want Mass Unemployment.

OK, we know what David Cameron and his front bench team want and plainly it is emerging as a step into the past a revival of Thatcherite policies of mass unemployment. Cameron’s rant at the LSE yesterday confirms he wants mass unemployment he has called for cuts in state expenditure and a freeze on council tax these will inevitably lead to mass unemployment. Cameron wants to turn the clock back to 1979 and follow Thatcher’s policies.   We believe the government’s strategy as being the best option for the country; financial stimulus is what is needed. We would like to see worthwhile public works projects there are bridges and tunnels to be built; railway construction to recover rail transport from the Beeching cuts and road improvement; we need to build more houses and continue to improve old homes.

Cameron’s Tories have nothing to offer, his is a policy of defeatism and making working families pay for the economic crisis.   Compassionate conservatism never existed it was mere rhetoric.

New Social Housing.

We accept there is a need for social housing, we believe that any social housing planned should not follow the old model of whole streets and wards composed of rented property.  Any new project ought to avoid the mistakes of the past and new social housing should include a majority of shared ownership and or property for sale.  We hope that this would lead to socially mixed neighbourhoods. They should include facilities for adequate vehicle parking, general clinics, youth and entertainment centres.  Above all, we need to avoid the drab council owned estates of old.  Tenants should be tied to renewable contracts so that a check can be kept on their needs and that they are socially responsible.

Credit, Credit & Credit.

Let’s say first credit is not a sin.  It is not a sin, to have a mortgage; to have a credit card; to have a personal loan. It is up to individuals to decide if they want credit, governments need access to credit; businesses need access to credit so there is nothing wrong about owing money. Surely, is there is nothing wrong with even the low paid to want to buy a house or flat. 

 

We have become somewhat alarmed of late of the use of language such as “sub prime’ it has taken on a concise life of its own its used a little like “sub human” used to be fashionable amongst fascists.  ”Prime” is supposed to mean those who are able to maintain their mortgage repayments if difficulties occur, these individuals have secure employment etc.  The “sub prime” deals were generally deals made by unscrupulous mortgage brokers out for a quick buck who may have given false information to mortgage providers underwriters to get a deal and the borrowers tended to be on low incomes.

 

We also have the “buy to let” and “developers” brigade” many of whom supplied self certificated statements of income not checked. But even if “sub prime”  mortgages were given no one could have expected the readiness of central banks increasing interest rates willy nilly. No one expected either that their mortgages “prime” & “sub prime” would be packaged and sold off to bidders and as this was a major cause of the financial crisis this surely is something that needs examination.  

So rather than giving boring lectures to the public on the impact of “sub prime” mortgages politicians would be well advised to look at the impact of selling off mortgage packages to other financial institutions without the original borrowers knowing. Anyone who wants to purchase a home of their own should be encouraged and assisted.

Housing Crisis.

Amidst the economic mayhem  is the issue of house prices. The problem owes something to continued interest rate rises encourage by the Bank of England Monetary Policy Committee and the effects of the housing crash in the USA.  Looking at banks and finance houses here in the UK, it is a puzzle why so many mortgage providers are tightening up on new applications or remortgaging. After all given the interest rates imposed by them it is of some profit to encourage borrowers. The reason why house prices are falling is largely due to too few buyers as many buyers cannot obtain mortgage deals; the fact that so many providers are doing this makes one wonder what happened to competition or is there a kartel at work whereby mortgage providers are deliberately holding back finance so as to force house prices down – if so this would be unacceptable behaviour.  The decision by Tesco to set up a banking house and provide mortgages is welcome and brave, hopefully Tesco will shake up the market, but it wasn’t long ago that Tesco announced it had set up an estate agency which of course collapsed. 

If we are to return to normailty in our economy we need and must have a substantially reduced Bank of England interest rate and mortgage providers need to relax their lending policies: there remains a serious shortage of housing, we need to stimulate house building and many people are frustrated that they cannot move until the market relaxes.

Reduce interest rates now.

The Bank of England Monetary Policy Committee is due to decide the base interest rate today. It would be sensioble to reduce the current rate bt a significant amount in order to restore economic confidence, to prevent job losses, to stimulate the housing market. The obsession with inflation rate is unhealthy, most of this is caused by imported inflation: energy and food prices beyond control of the domestic market.

Unfortunately, it is more likely the idiots on the M.P.C. will not reduce the basic interest rate this will only compound our economic woes and lead to more job losses and bankruptcies. Only a substsantial reduction in the base interest rate will stimulate economic growth.

Banks, money, money, money…

Banks, money, money, money…can we not wonder at the financial crisis due to not only the crisis in the mortgage sub prime market in the USA: also due to the Bank of England Monetary Policy Committee raising interest rates and the Chancellor of the Exchequer must accept some responsibilty for contributing to the crisis becoming worse here. Mr. Darling’s recent wisdoms are not helping the crisis and most financial institutions are responsible lenders, like Nero fiddled while Rome burnt, Mr Darling has permitted recent interest rate rises to take effect – this is unsatisfactory.

The crisis now would be helped if the “old lady of Threadneedle Street” took the courage to cut interest rates with immediate effect, this may help to create confidence in our financial institutions.

Monetary Policy Committee…

The Bank of England Monetary Policy Committee…or should it be the Misery Policy Committee…yesterday decided to sit on the fence and in its wisdom, of which its members have little, decided to leave interest rates as they are. It would have been better for the UK economy if the bank had taken the bold decision to reduce interest rates and thus help to restore confidence in the UK economy. The UK government should end its fear of a little inflation in the economy and act to reduce interest rates. The consequences of the present financial crisis are serious, as UK bank lending rates and new home mortgages are set to rise putting housing ownership beyond the always hopeful first time buyer. Labour should be the party and government that encourages home ownership and facilitate lower interest rates for home mortgages. Labour should not allow high interest rates to continue.

Gangs, drugs, killings…

Hardly a day passes now when we see headlines about another shooting, another killing, gang violence and anti-social behaviour. There is sufficient legislation for the police to act to deal with these issues, maybe if the police concentrated less on harassing motorists and get out of their cars and walk the streets on the beat and get to know their local communities – it might help. Courts should employ stiffer sentencing for possessing and using knives and guns.

It might also help if local authorities and public bodies did something about cleaning graffiti ridden streets; deal with vacant and derelict properties; spend money on providing facilities for youths and communities; we have to do something positive to counter gang culture. ASBOs could be strenthened with offenders doing community projects. More must be done to assist with employment opportunities; more effort to attract people away from gangs and drugs. More funding for voluntary youth organisations.

Fine promises of action of funding from number 10 are not enough, money must be seen trickling through estates, the public need evidence on the ground of projects, we need a new dynamic approach.

It might also help if for once our media concentrated on stories on positive youths, positive role models of youths who make worthwhile contributions to themselves and others.

Ashtead – shame of nimbyism

A £1.7million house in Grays Lane, Ashtead, Surrey, is to be used by the Soldiers, Sailors, Airmen and Families Association (SSAFA) for the relatives of injured soldiers at Headley Court Rehabilitation Centre , Epsom.

86 residents of the area around Grays Lane Ashtead should really be ashamed of themselves this morning for their nimbyism of the worst kind. The approval by Mole Valley District Council is to be welcomed. Some of these people interviewed on BBC TV expose themselves to be the most awful nimbys in the country.

Floods – foolish to blame the government…

I have been reading some of the bitter postings on a BBC News web site, no doubt many are by habitual critics and cynics accustomed to blame the government of the day for anything from lost bus tickets to the poor results in sporting events. I am sure that many are genuinely angry and bitter and don’t know who to blame and the government seems an easy option. If any organizations are to blame for the floods at all, given it is a natural event, then blame the water and sewerage companies for enjoying fat profits, failure to update infrastructure and imposing high prices.

Do the water and sewerage companies need any government to show them the way; they should be aware that floods in certain areas of the UK are not new events. Surely, the privatized water and sewerage companies must be aware of the need to modernize our old infrastructure and spend money in doing so, the aim was to spend £4.5 billion but they are not spending that, they are spending less than that.

Builders, developers, planning authorities also need to share the blame, for they have also failed the general public.

We need now to think, plan and redevelop our infrastructure, the cost should be born partly from the profits of the water companies and government funding and E.U. assistance should be sought.