Liberal Democrat claims ''housing bubble will burst''
Tue 18th Sep, 15:21:36 BST
A senior member of the Liberal Democrats has said that the property market could be headed for a crash as a result of Gordon Brown''s management of the economy.
Vince Cable, the deputy leader of the party and a former economist with oil giant Shell, said that the prime minister''s "day of reckoning cannot be far off" as Britain approaches a downturn in the housing market.
"History tells us that bubbles burst - and every housing boom is followed by a crash whatever the papers say. The ''house that Gordon built'' may not be built on sand, but it has certainly been built on a floodplain," he argued.
Mr Cable''s stance was echoed by renowned US economist Alan Greenspan who told the Daily Telegraph that homeowners in the UK should be prepared for "difficulties" and said that the housing boom could not last.
"You''re already beginning to see the mortgage rates are moving; a lot of the two-year fixes are beginning to unwind and the teaser rates are going," the paper quoted him as saying.
Vince Cable, the deputy leader of the party and a former economist with oil giant Shell, said that the prime minister''s "day of reckoning cannot be far off" as Britain approaches a downturn in the housing market.
"History tells us that bubbles burst - and every housing boom is followed by a crash whatever the papers say. The ''house that Gordon built'' may not be built on sand, but it has certainly been built on a floodplain," he argued.
Mr Cable''s stance was echoed by renowned US economist Alan Greenspan who told the Daily Telegraph that homeowners in the UK should be prepared for "difficulties" and said that the housing boom could not last.
"You''re already beginning to see the mortgage rates are moving; a lot of the two-year fixes are beginning to unwind and the teaser rates are going," the paper quoted him as saying.
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