[GJM] Engineering a "Credit Crunch."

[robert searle]

Dear All,


        This may be of interest. It comes from the Metro May 30. It is an article entitled  When the PM battled to create a "crunch." by Jo Steele




   Britain was busy trying to actually create its own credit crunch in the booming post-war years, confidential Cabinet records revealed yesterday.

The country was enjoying increased prosperity in 1955 and using hire purchase agreements to buy cars and TVs and snapping up cheap property.

But the economy was on a shaky footing , artificially bolstered by consumer spending.

Hand-written records by Cabinet secretary Sir Norman Books during 1955 and 1956 caputre the governments concern. They were kept secret until yesterday when they were released at the National Archives in Kew.

In one meeting, minister for supply Duncan Sandys said: "We are spending too much public money and we are subsidising many pelople who don t need help. Also widespread misconception of what a house should cost."

But prime minister Anthony Eden was keen not make himself unpopular with the poor, saying: "We should not be afraid to do what is needed but..we need to keep a balance (rich and poor) and avoid appearance of being hard-faced Tories.



R.Searle


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