This upbeat press release from Eric Pickles, the UK Local Government Minister, is a MUST READ article in my view. Check it out!
Whilst the UK Government fiscal policy is very slow to help investment and jobs, the Government guarantee scheme for housing loans is a risky policy in the eyes of many economists (See this week’s Economist). Many argue that it’s, in effect, a UK sub-prime crisis waiting to happen.
With the Labour Party is disarray, the Coalition of the Conservative and Liberal Parties are playing a risky game to kick-start to UK economy and create a feel good factor ahead of the election. In reality, the Government is stimulating a property bubble which seems to contradict the central message of austerity.