Posts Tagged ‘Bull Market’

Private Eye on Thatcher and the Housing Bubble

April 16, 2015

Private Eye in the issue of the 19th April – 2nd May 2013 marking the death of Margaret Thatcher published a piece on her legacy of failure and corruption. Among her other failed policies and their disastrous consequences, the Eye included in the piece ‘That Thatcher Legacy’ ‘Booms and Busts’. This was the housing bubble created by Thatcher’s ‘right-to-buy’ and the selling off of council houses. The Eye said

Right-to-buy helped fuel the Eighties housing bubble, which burst in the early Nineties, but this was quickly forgotten by politicians and regulators until it happened again. After the start of the longest bull market in 1982 came Black Monday 1987 – a record one-day Wall Street crash – which was also forgotten until the dotcom bust in 2000 and Lehman collapsed eight years later.

In last fortnight’s Eye, they warned that Osborne’s ‘Help-to-Buy’ ISAs would further inflate house prices, without doing anything to address need. This would create another housing bubble. And if they’re serious about extending right-to-buy into the Housing Associations, then it’s pretty certain that another housing bubble is on its way.

Still, at least it’ll keep the Daily Mail happy. They’ll be able to publish scare stories about negative equity, while trying to find some way to blame Labour.

The real culprit, however, is Maggie, and the politicians, who keep trying to repeat her mistakes for their own electoral advantage and the personal profit of themselves and their friends.