Wednesday, Jun 17, 2009
They will probably report that they think there is a Credit Crunch!
Times: MPs launch mortgage market inquiry
Some brilliant comments at the bottom of the article
"Looks like another attempt by MP's to keep property prices high so not to damage their own property portfolio wealth. The biggest thing affecting first time buyers is still the prices rather than credit.
Mike, London,"
Posted by wdbeast @ 09:30 PM (1029 views) Add Comment
12 Comments
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1. tyrellcorporation said...
Shock-horror! they'll find out that actually banks are running a business and have to price risk correctly after all the chaos of the last 18 months. What a waste of time, effort and money.
2. tyrellcorporation said...
Yet another excuse to get those eveil banksters in front of the TV cameras again and give them a public bottom smacking. Nothing to do with government policy then?
3. it_is_going_with_a_bang said...
What a waste of time and money.
An inquiry? About what? The fact that house pricing is on an entirely predictable decline and that banks unless they are mad risky "b"ankers will not lend unless the LTV is at least 80%. Where is the need for an enquiry?
Took a loan out and now cannot pay it back and being repossessed? Huge suprise there then. " Your home is at risk if you do not keep up payments" is a phrase that springs to mind. Somewhere is the large print I would think let alone the small print.
4. alan said...
Comments are brilliant on the site...
"What will they do...use a thesis of a former PhD student"....
"Ooops, thats how the Iraq war got started" said a clever commentator!
5. quiet guy said...
Last paragraph in article: "The Government has outlined plans to inject £3 billion into Northern Rock so that the state-owned bank can increase mortgage lending by offering £14 billion in new loans over the next two years and break the deadlock in the market. However, it remains on hold while the European Commission decides whether the move constitutes state aid."
Whoa! WTF! The government wants to pump £3,000,000,000 into Northern Rock to increase borrowing for houses at this stage of the economic cycle? This is outrageous. If the government feels that it must intervene, the money could be loaned to small businesses who could really do something useful and productive with that money. Instead, the government wants to encourage further debt? This is not the right way to use my taxes.
On a more positive note, I was encouraged by the comments to the article.
6. mr messy said...
house prices are not falling, went to view a house yesterday, was brought for 210k in april 2007, now just gone on the market for 220k with no additional work being done or conservatory added. when i challenged the estate agent they mumbled about the owner not being left in negative equity, and yes i agree the reason why houses are not selling is they are still too expensive not the fact that people cannot borrow the money
7. uncle tom said...
Great comments after his piece, I agree.
Think about the timing of this enquiry - it is unlikely to report before the next election..
..this is just an exercise in 'being seen to do something'
8. dbc reed said...
People are ignoring the obvious: that governments get elected by existing homeowners who want unearned,untaxed capital gains from their
houses.The fact that the real source of wealth for most people is good wages is consistently ignored because it is very hard for politicians to provide more jobs: it takes hard graft and influence where most MP's are only interested,at most, in Lady Bountiful good works which interfere with the work of local agencies but which get them in the local papers and all too rarely on local telly.
Keep tabs on the Chartered Institute of Housing which is not afraid to insist that the housing market needs taxing to stop house price inflation.Also the motley crew of land taxers who have turned out to have been right all along.
If people like Stephen Hester of RBS keep saying that they're not going to chuck money at the housing market ever again,then it could be the bankers who come out of this looking like they are bravely resisting the pressure of politicians to distort the market for short-term electoral reasons.
9. inbreda said...
Comments under the article are nearly all brilliant.
dbcreed - I think your wrong. I think governments are elected by old people with savings who are very close to losing the lot.
10. dbc reed said...
@inbreda
If politicians believe that old people with savings are the ones to keep onside,they are doing a bad job of it.Pushing interest rates and increasing the banks' supply of money by quantitative easing help middle aged homeowners and do nothing for older savers (or younger workers.)
It is partly a matter of perception: politicians are terrified of being identified as being anti-house price inflation.Believe me: I got an MP interested in LVT but the thought of what this would do for election prospects,if it became known, led to a terrified disavowal .
11. uncle tom said...
Who elects governments?
There has been such voting apathy among younger people, that it has been projected that the majoprity of those who actually vote in the next general election will be pensioners.
That obviously slants the priorities to a degree.
However, pensioners don't readily change their voting habits, and election outcomes boil down to swing voters in about 100 constituencies - only about half a million people actually make a difference.
- So who are those half million?
They are people who take the trouble to vote, they are not fixed in their ways, and by and large they are neither wealthy nor poor; living in areas that are neither depressed nor affluent. Many of those areas have seen alarming increases in knife crime and threatening behaviour at night and in schools.
Their primary concerns at the moment that will influence their voting are likely to be the risk of redundancy, law and order, and education issues such as SATS.
As far as housing is concerned, my guess is that they are, collectively, as much concerned about their children being able to fly the nest and find somewhere affordable as they are concerned about the loss of their accrued equity.
Moreover, I doubt that many believe the government can actually do much about it - so an electorally neutral subject, I think...
12. bluebeach said...
That's the thing that really really bugs me, when I hear politicians harp on about how we must increase funding to help first time buyers..... what, so that they can buckle under the strain of a massive debt for the rest of their lives!!!..... Simple... HOUSE PRICES ARE STILL FAR TOO EXPENSIVE... and the only real help for us all is for prices to be allowed to fall and not propped up by this sad joke of a leader whose only aim is to remain in power at any cost.... and what a cost it is to the sad people of this country.... and we are sad.. all of us.... working just to pay the bills... masiive bills... we panic at any news of falling house prices... at rising house prices... it will only end when we see a house only as a home... A HAPPY HOME!!! (_8(|)