Tuesday, Apr 22, 2008

The £50bn+ is to avoid depression, not to save housing

Bloomberg: BOE Has 'Slim' Chance of Helping Loans, Goodhart Says

Bank of England Governor Mervyn King's offer to swap bonds for mortgage securities won't fulfill the government's promise to help homebuyers, former policy maker Charles Goodhart said.
``The likelihood of getting the mortgage market going again is slim,'' said Goodhart, a founding member of the Monetary Policy Committee and now a professor at the London School of Economics, in a telephone interview yesterday. ``This just prevents things from getting worse. It's a backstop.''

Posted by 51ck-6-51x @ 10:25 AM (249 views) Add Comment

2 Comments

1. paul said...

dbnazz, you were right.

The government has one outcome in mind, the banks another. The incompetence on both sides is mindblowing.

Tuesday, April 22, 2008 10:45AM Report Comment
 

2. jonb said...

It does help homebuyers, by still allowing prices to crash so they become affordable.

Tuesday, April 22, 2008 12:24PM Report Comment
 

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