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Home Publications Blogs Beat the Press The NYT Doesn't Know About the UK's Housing Bubble

The NYT Doesn't Know About the UK's Housing Bubble

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Wednesday, 05 May 2010 21:55

That is what readers of this election eve article must assume. The bubble and its collapse are not mentioned once in an article that tells readers how the citizens of the UK will have to sacrifice in the years ahead. Remarkably, one of the people who is cited as an authority on this topic is Mervyn King. Mr. King, as the head of the Bank of England is the person who is most responsible for the country's economic devastation. Like Alan Greenspan in the United States, King just sat back as the housing bubble in the UK grew to ever more dangerous levels. While the collapse and the resulting economic damage were totally predictable, Mr. King chose to do nothing to prevent this catastrophe.

The economic collapse following in the wake of the housing crash is the main source of the country's current fiscal problems, not profligate spending, as the piece implies.

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written by Queen of Sheba, May 06, 2010 5:34
The entire media seems to be on the same train, i.e., insisting that profligate spending is the main economic problem of any country that offers its citizens any social safety net at all, and the only way to handle the deficits arising from current economic troubles is to cut social spending to the bone. England spends too much on national health and "the dole;" Europe spends too much for their health care systems, college education and child care benefits and gives workers too much vacation, and Greece is failing because their workers retire too early.

Balderdash. But plans are already well underway to underfund Medicare and cut Social Security benefits in this country, and the deficit hawks would pare down (or eliminate) even more social services if this country offered them.

The citizens of this country need their own Fed - an entity that could print money and hand it to us for almost nothing, like the Federal Reserve does for banks. We could use some of the money to hire ourselves accountants that would lie to the authorities, telling them we were solvent, while we took the rest of the money to the craps tables at the casinos.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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