[PEN-L:32425] Re: Bank of England paralysed by fear of property crash

[Chris Burford <cburford@xxxxxxxxxx>]

The morning breakfast television commentators have got nothing about Gordon
Brown's warning. Not even a warning that the market might be subdued.

This no doubts illustrates the vital role of news management in finance
capitalism: He leaked the story to the Financial Times, to give context to
the gloomy Bank of England mpc minutes. Then he carefully avoided giving
any briefing to the popular financial journalists.

The defense for this manipulation is that nothing should be done to alarm
consumer confidence. We shall see in his autumn statement next week whether
he moves to raise taxes on business or on consumers. Or whether he follows
Will Hutton's advice is that it is essential to control the property market
directly.

It is a subtle, deadly important, and precarious game.

Chris Burford
London