A possible scenario. I have no idea how plausible ...

2010-06-23T23:03:48.858+01:00

A possible scenario. I have no idea how plausible it is, but there's an elephant in the room that everyone's forgotten about. Banks are still weak, and our house prices are still ridiculously overvalued. Currently they're rising, but that's in a (historically) tiny market, so is probably not representative of normal laws and supply/demand. So why haven't they fallen. Well so far unemployment has been fairly low and interest rates have also been low, while the government borrowed lots of money to bail them out.

But there's no more money, and George Osbourne is about to throw 800,000 people onto the scrap heap, and squeeze many more. Being conservative that's at least a million unemployed, I'd guess considerably more.

So what's that going to do to house prices? And if house prices start to fall, then the whole rotten edifice might come down with it.

I'm not sure if they're insane, stupid, or just so blinded by their insatiable desire to make Britain safe for inbred aristo fucks.

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A possible scenario. I have no idea how plausible ...