Naturally this ongoing disaster is being hailed as some kind of 'success'. I'm afraid I view this whole catastrophe of a development with deep foreboding.
The BBC analysis is here and that of the Telegraph newspaper is here.
I haven't been writing about this in recent days, because ... well, what's the point?! It was clear to me weeks ago that 'compromises' would be cobbled together to allow announcement of some kind of Faustian pact. Watch out for rampant inflation in a few years time! This will not be a simple by-product of what has been agreed today - it is the whole purpose of it as it will help to reduce the debt-burden of our profligate governments and many individuals who have run-up debts (over-extended mortgages or 'maxing-out' of credit cards) far larger than was prudent and contributed directly to the rapid rise in property prices, thus pricing many younger 'first-time' buyers out of the market as the price for fooling most people into believing the economy was doing well (and giving their votes to the self-serving morons who directed this policy). Anyone who has been genuinely 'prudent' and saved to provide for their futures is going to see their assets decimated - but they have fewer votes than the majority debtors so even right-of-centre political parties are going along with this nonsense, even if there is token disagreement with parts of it, no doubt as a way of trying to distance themselves from it when it actually does result in even more urgent problems in a few years time.
What should happen? Public expenditure needs to be SLASHED across the board and there needs to be an immediate reduction in the tax burden to encourage the entrpreneurial elements amongst us, initially of a somewhat lesser degree than the reduction in public expenditure night seem to justify, to allow the public finances to begin to be made a little more healthy and to start moving in the direction of balance. Politically disastrous I accept for the political party that tried to do this, because the large 'client state' that successive governments have created (and particularly the current Labour government) has grown addicted to the destructive 'credits' with which the government buys their loyalty. I don't object to those that need it being given a helping hand, I do object strongly to the deliberate creation of a large dependent segment of society which no longer sees the need to strive to try and get themselves into a position where they no longer need State assistance.
I need a drink!
PS/ Samizdata has very much the same reaction to this as me.