Gordon Brown and the housing bubble

Gordon Brown didn't miss the housing bubble, he spotted it but thought he could avoid a bust. Here are his words from his 2005 speech to the Labour Party Conference (my emphasis):

"We will have the strength and resolution to take the right long-term economic decisions too.

Why has it been that at every point since 1997 faced with the Asian crisis, the IT collapse, a stock exchange crash, an American recession, last year a house price bubble, this year rising world oil prices, why has it been that at every point since 1997 Britain uniquely has continued to grow?

In any other decade, a house price bubble would have pushed Britain from boom to bust.

In any other decade, a doubling of oil prices would have put Britain first in last out and worst hit by a world downturn.

I tell you, it is because with Bank of England independence, cutting debt, fiscal discipline and the New Deal this Labour government has shown the strength to take the tough long-term decisions, that inflation is low, interest rates are low, growth has been sustained in every year, and we are closer than ever to the goal which drives us forward: the goal of full employment for our generation.

Labour, the natural party for economic strength in our country today."

You can watch him making this speech here about 5:20 in.