Tuesday, Jul 29, 2008
Mismanagement on a grand scale....
BBC News: Plan to revive mortgage lending
''...Sir James Crosby's - the deputy chairman of the City watchdog, the Financial Services Authority - assessment of the health of the British mortgage market is about as gloomy as it's possible to be....This former banker blames a collapse in demand for mortgage-backed securities, or investments created out of mortgages and sold to banks and big investors...''
Posted by hpwatcher @ 08:09 AM (684 views) Add Comment
8 Comments
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1. hpwatcher said...
Silly s@ds , the lot of em'. Trust them to get it right and was a hash they made.......
2. yorkshireman said...
Why should the taxpayers effectively guarantee mortgage backed securities? It is up to the originators of the securities to guarantee their products. Sir James's plan ony has one guarantee, that the taxpayer will be worse off and that his cronies can carry on regardless.
3. Fjcruiser said...
if it goes well it is their profit, if it all goes wrong it is the taxpayer's you pay. What kind of deal is that ? Who on earth would want to sign a deal like that ? No chance.
4. Ah-so said...
The tax payer has to pay for an awful lot, but lending to house buyers should not be an obligation. Nor should commercial banks be allowed to make a profit from a government guarantee.
The credit crunch is a the natural result of the financial insanity of the last 5 years and it should be allowed to run its course.
5. Charlie Brooker said...
Lets back the illicit narcotics industry while we're at it.
Just as addictive, just as bad for society and just as enslaving for the sheeple.
6. denzil said...
So as well as bailing out Northern Rock (with little sign of ever getting a return), the humble taxpayer is the poor sucker who gets who pays to keep the bubble inflated.
Whatever happened to the "miracle economy" and "stability"? The moment HPI dries up the economy appears on the brink of collapse.
If this measure (in the form it is touted) it will be an absolute disgrace. Reckless lending practises and financial instruments that were too complicated for most of the financial experts who used them have created an economy built on debt. As soon as the financial services sector struggles they expect the taxpayer who is already hocked up to the eyeballs to act as guarantor.
This should not be allowed to happen.
7. beartil2010 said...
This is terrible. It's too late to stop labour breaking everything, and they're idiots anyway.
The conservatives are going to get in next time - they might make the same mistakes, in fact they might even back these mistakes right now. Let's keep moaning - and let's also actually do something. Write to David Cameron - I'm going to - maybe if enough people do it'll make a difference.
camerond@parliament.uk
He should be ripping Gordon a new ar$ehole over this stuff and all we get is people backing these stupid ideas. Explain to him what needs to be done! No taxpayer bailouts for big business! Protect individuals who live in their homes ONLY! Let banks go bust! Help FTBs and poorer people by allowing houses to be cheaper!
Easy really.
8. inbreda said...
If they are going to introduce new legislation, they should make the banks, rather than the individual, responsible for paying any amount over 4 times their salary or over 90% of the value at point of purchase.
Mind you that would reward the idiots that kept inflating the bubble.
Nope - only solution is to let house prices crash.