Wednesday, Apr 22, 2009
A refreshing change
This is money: Don't stop housing crash, Bank man warns
"A top Bank of England official today warned the Government against trying to prevent the housing crash. In a controversial call, markets director Paul Fisher said it would be 'dangerous' for policymakers to try to stem the relentless slump in the value of property. He argued it is also 'sensible' for families to be forced to save up for bigger deposits, rather than returning to the days of near-100% mortgages."
Posted by quiet guy @ 09:22 PM (592 views) Add Comment
2 Comments
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1. dohousescrashinthewoods said...
Blimey, they have a brain between them after all.
Put this man with Vince Cable and we could be in danger of having a beneficial government!
Well said that man. Now if Mr Fisher could just kick one or two of his colleagues into touch, that would be fab.
2. dbc reed said...
The present crisis is generally represented as banker-induced ,but since so many banks have been ruined by providing cheap mortgages, it is at least possible that they felt pushed by political pressure to provide credit for housing.
In all the finger-pointing ( for blame) that goes on nobody looks at the political situation with parties that compete to identify themselves as the Homeowners Party, it being too difficult to provide good jobs as the parties used to compete over.We now have the Homeowners party and the New Homeowners Party both involved in basically bribing a majority to vote for them by providing cheap housing which accrues untaxed capital gains.The identification with labour and capital went out of the window long ago for being too brutally realistic.
One indication (possibly) of the banks not wanting to know is their refusal to go back to pre-bust levels of mortgage lending.The Guv rails ineffectually against the banks disobedience ,but are we sure there was n't a deal during the bank support negotiations: that the Guv agreed that the banks would in future lend sensibly on housing while beating its breast in public about the banks ingratitude?If the Guv meant to subject the banks to state direction,they would surely have done so by now. The Guv could let the housing market slide and then stand back and blame the banks-they would if they had any sense.