Mr King has been forced into partial retreat from his position on moral hazard. Complete capitulation may yet be called for Tuesday, 1 July 2008 Something must be done. So says Vince Cable, the Liberal Democrat spokesman on Treasury affairs, who rose to prominence by urging the Government to nationalise Northern Rock. With the wider housing market showing every sign of going into meltdown, he's again asking the Government to act. But how? This is an altogether tougher question. Uncharacteristically, Mr Cable is short on answers. Yet with no sign of a market-led solution materialising, he is surely right in thinking that there needs to be an urgent public policy response. The newsflow from the housing market was again dire yesterday. New mortgage approvals for house purchases (as opposed to remortgaging) were nearly two-thirds...
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