Wednesday, Jul 30, 2008
Don't do it Mr Brooon
Times Online: They mustn't mortgage fairness to buy votes
You can see the temptation so clearly. Government in the doldrums; poll ratings tumbling with the economy; housing market frozen (frozen my assets - it's just collapsing); and - hey, what's this? - a plan to kickstart the Government's fortunes by kickstarting the housing market by underwriting mortgage lending.
Posted by nooneo @ 11:35 AM (828 views) Add Comment
11 Comments
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1. drewster said...
When capitalism and democracy collide, democracy wins. If 75% of voters have been reckless with their money and only 25% have been prudent, then we'll get bailouts every time.
In the UK, like in any capitalist economy, there is a small number of rich people, a medium-sized middle-class with savings, and a large horde of great unwashed with zero or negative savings (i.e. debts). Borrowers massively outnumber savers, so bailouts are an easy way to buy votes. Governments don't reward prudence, they'll take your money any way they can, including through inflation!
2. angonamo said...
Nice find, Nooneo. A really good article and some very interesting comments at the end of it too.
3. nopensionnohouse said...
Good one nooneo.
4. Stevie Dee said...
"and a large horde of great unwashed with zero or negative savings (i.e. debts). " How absolutely hysterical. "Today we call these people Chav's, and there numbers are now growing." Imagine Attenborough narrating these words.
5. handle_it said...
One comment says :
" Alice I think you underestimate the impact of banks not lending. I suggest a great many 1st time buyers would buy if they could get funds its not all lets wait and see. If you can buy cheaper and afford it and it represents good value then buy it. trying to guess the bottom of market is a bad call. "
Yer better to just load your self up with debt eh :o)
6. Stevie Dee said...
The government guarantees loans for entrepreneurs with the Small Firms Loan Guarantee (SFLGS), guess what, it's full of red-tape, and rare as rocking-horse sh!t to get, unless you have friends in the right places or enjoy ar5e-licking. B@llocks initiative which sounds good, but is really a load of b@llocks!
Furthermore, I am punished for selling my property because I did not want to be in negative equity. To be ripped-off by a bunch of dodgy B2L landlords. Only for this f**king Bing to propose an idea to help his f**king or f**k buddies. F**k That!
7. sold out said...
I have no doubt that this government(any government) would be itching to save themselves and would bail out the housing market in the blink of an eye.But remember folks their is limitations in how much the uk taxpayer can afford.After 10 years of nu labour taxing us all to a standstill, and very little saved for the inevitable bust, where will the money come from?
With the coming recession /depression tax revenue will also fall considerably.
At the very most they will be able to provide taxpayer bailouts to save the financial/banking sector and prevent another NR fiasco.
Roll on 2010/2011 when we should be at the bottom of the property market.
8. shipbuilder said...
In Northern Ireland developers are screwed and have stopped building. The government's great idea is to buy up unsold stock for social housing. Now, a cynical person might say -
- Well, my business is failing, so why won't the government buy my unsold stock?
- 'Exclusive' housing developments will be turned into sink estates
- Our tax goes straight into developer's pockets at, undoubtedly, an inflated market price and this being from a FIXED budget, so who else loses out?
9. Dancer7 said...
Is there no limit to the mis-use of taxpayer's funds? I suspect that the government will launch some sort of mortgage rescue plan...and the problems that will bring further down the line just doesn't bear thinking about.
I think the whole thing just stinks and is an insult to the poorer tax payer. Will the government compensate me for any possible betting losses that I might chalk up? Worth a try!
10. denzil said...
This has crossed my mind but I cannot see old prudence (Brown) completely throwing away what he regards as ten years worth of prudence. High house prices are good for Estate Agents, downsisizers and those who work in the property business but they are not good for anybody who uses a property as a home. FTB are stuffed, 2TB, 3TB are stuffed because of the increased distance (cost) between rungs.
If the Government ever underwrite the mortgage industry industry, I will happily rejoice at the sight of Brown & Darlings heads on spikes at tower bridge.
11. Orwell said...
Sold Out. That is why they have altered the fiscal golden borrowing rules...