Alice's bubble wrap

Current housing stock should not go to waste

We are being softened up for a housing bailout. This Guardian article is a particularly shocking example.

"Media speculation is always a matter of claim and counter claim, bluff and spin, truth and distortion. But today's news reports on councils and housing associations being given the power to help first-time buyers with deposits in return for an equity stake by buying up newly built empty properties, and introducing some sort of national sale and leaseback scheme, have more than a ring of truth about them.

In policy terms, what is being suggested is entirely sensible. While arresting the steep decline in house prices should not be an end in itself, the risk that a collapse in house prices will tip the economy into serious recession is too strong to be ignored."

This is a rehash of the "we need to saving housing to save the economy" canard. In fact, the bailout is a redistribution of wealth from tax payers to asset holders. The idea is immoral, since it takes from those who have little and gives to those have much. It will create moral hazard, it won't prevent a recession, and it won't save Labour from electoral annihilation.

Bradford & Bingley was so close to the edge

It was what we all suspected.

Darling: the worst for 60 years?

Stumbling and mumbling takes a look at today's daft comments from the Chancellor.

US GDP: Lowest Inflation Rate in 5 Years

Last week's US GDP revision has many people perplexed. Did the US really grow so fast during the second quarter? There are a lot of sceptical people out there.

Is the FDIC another troubled monoline?

Not quite. It can always rely on the US Treasury for a bailout.

Bank of China Flees from Fannie and Freddie

The beginning of the end.

The rouble has tumbled, the stock market has crashed, and investors have pulled $25bn

The true price of invading weak and defenceless neighbours.

Rate hike looms as Fed tries to ease inflation

Wishful thinking, I suspect.

Georgia Bank fails with $1.1 billion in assets

Bank failures in the US are coming thick and fast.

Shallow Recessions, Shallow Recoveries

They don’t make economic recoveries like they used to.