And whilst there will always be risk taking lemmings where debt and houses are concerned, I think on this occasion and in this environment, the mainstream & majority are starting to wise up and see through this for what it is - dangerous.
There is a newsnight thread on main board. I caught a bit of it but missed the start - like Randall, some tough questions were asked, for a change. The I player could help - it was definitely worth a watch in my opinion.
It hasn't even been properly thought through by govt - weren't there other schemes of mortgage help which just helped a handful after a yr or so instead of the hundreds or thousands it was aimed at?
Schapps said it would be subject to review - which may happen sooner than he thinks.
NewBuy scheme is poorly constructed and lays no foundation for recovery
It's not just pasties that are causing George Osborne's Budget to prove problematic
As we reveal today, its NewBuy scheme is in trouble, too. Planned for months, it is designed to help first-time buyers own a new home. But it's already unravelling.
Like VAT on pasties, it's an example of a Budget measure that's ill thought through with unintended consequences and of dubious benefit.
Increasing the supply of new homes on the market through an artificial scheme underwritten by the state is not obviously in the interest of house builders trying to regain profitability and protect margins. Similarly, it's not obvious why it's in the wider economy's interests for the Government to increase the number of young people with 95pc mortgages - condemning many of them to instant negative equity. Both lenders and house builders have good reasons for steering clear to protect their commercial interests.
Add in the complexity of the scheme and it has all the hallmarks of a disaster in waiting.
The Coalition is impatient for economic recovery and wants to fund a building boom through subsidised mortgages - the sort of madcap scheme that got us into the credit crisis in the first place.
Recovery from recession induced by banking crises is notoriously slow. But risky, highly leveraged quick fixes such as NewBuy are no solution. Consumers will spend to turn the engine of recovery only when they feel more confident. That largely comes from job security and job prospects. Granting house builders, and all other employers, a holiday on the National Insurance job tax would have been a more meaningful and less risky Budget measure than trying to rig the housing market short term
Says it all, really
NewBuy: Home Builders Federation executive chairman Stewart Baseley's letter
This post has been edited by Shotoflight: 29 March 2012 - 10:21 AM