- At the weekened, the hystercial reaction to George Osborne was a sign of massive tension within the Government. The PM, Chancellor and several ministers were put out to slate the Tory statement of the obvious.
- Today, the Chancellor has dismissed the claims that HBOS could remain independent. He has unilaterally withdrawn any potential support for the Bank outside of the current Lloyds merger, as agreed by Gordon Brown. The show must go on as directed with no deviations allowed
- Next week, a Labour Government who have raised taxes for11 years are to announce tax cuts to stimulate the economy. This in itself it ideologically, morally and fiscally wrong. Labour know it, bu they have no clothes. No doubt they will attack the Tories for opposing them. This is real George Orwell Doublethink territory.- Finally today and crucially the economic news is still very bad, inflation has fallen by 0.7% and the markets continue to tick down anyway. Worse, rents are falling as demand for housing dries up. House prices cannot find a new level with rents still falling - so expect a much further fall in house prices next year. Current predictions of 15% are laughable. it is quite possible top to bottom average fall will be nearly 50%; that is 30% more from here.
You won't here this from the housing minister. Next week the Government will announce more borrowing to spend our way out of a debt crisis. The insanity continues and I am at a loss as to why the media either cannot grasp this or are happy to see the current Government take little flak for its appalling economic mismanagement.