The U-turn of a U-turn

[The_Equalizer]

Tories have already done that. Loaded everyone with debt and no hope of every paying it back.

debt debt debt loadsa debt.

And there was me thinking people are responsible for their own actions.

[northernladyuk]

And there was me thinking people are responsible for their own actions.

They are. But blame (for example) for a credit boom must also lie with policy makers, as it's entirely predictable. This isn't a party political matter either.

[The_Equalizer]

They are. But blame (for example) for a credit boom must also lie with policy makers, as it's entirely predictable. This isn't a party political matter either.

Fair enough and I understand that people need a roof over their heads. On the flip side, it's clear that there's no need to buy, for example, brand new cars on PCP or swanky holidays to sunny climes on the drip.

[TheFaQQer]

Theresa May might just be the least tactical PM to ever serve.

Whoever told the Tory / DUP MPs that cheering when they defeat a vote to lift a cap on public sector pay makes good viewing and is a vote winner shows a massive lack of judgement.

OK, so technically it wasn't a vote about public sector pay, but that's not how people are going to see it when for the next n months it gets played over and over again about how they voted against a pay rise in the public sector.

[northernladyuk]

Fair enough and I understand that people need a roof over their heads. On the flip side, it's clear that there's no need to buy, for example, brand new cars on PCP or swanky holidays to sunny climes on the drip.

Sure. But if near zero % credit is available for car purchase, lots of people will buy new cars. Car manufacturers will tool up to increase production. The second hand car market will be flooded in three years time, depressing the value of second hand cars (which are also the assets on which the PCP loans are secured). Meanwhile there will be excess capacity in car manufacturers.

Blaming individual consumers is fine as a moralistic response to deal with the individual circumstances they find themselves in, but it's not an adequate policy response for the cumulative effect of cheap credit on the economy (as I know you know).

[BrilloPad]

Fair enough and I understand that people need a roof over their heads. On the flip side, it's clear that there's no need to buy, for example, brand new cars on PCP or swanky holidays to sunny climes on the drip.

The reason young people do that is that house prices are totally beyond them. So they spend their money elsewhere.

[The_Equalizer]

The reason young people do that is that house prices are totally beyond them. So they spend their money elsewhere.

Savings and investments?

[The_Equalizer]

Sure. But if near zero % credit is available for car purchase, lots of people will buy new cars. Car manufacturers will tool up to increase production. The second hand car market will be flooded in three years time, depressing the value of second hand cars (which are also the assets on which the PCP loans are secured). Meanwhile there will be excess capacity in car manufacturers.

Blaming individual consumers is fine as a moralistic response to deal with the individual circumstances they find themselves in, but it's not an adequate policy response for the cumulative effect of cheap credit on the economy (as I know you know).

Read: the general public can't be trusted with money.

[northernladyuk]

Read: the general public can't be trusted with money.

They can't be trusted with plentiful cheap credit. This has been understood for a long time.

[sasguru]

They can't be trusted with plentiful cheap credit. This has been understood for a long time.

Without cheap credit, the UK economy will go down the pan, consumption being it's biggest driver. This has been understood for a long time.
But not by Brexiters who can't differentiate between the appearance of prosperity and the reality.