Friday, Sep 10, 2010
We own land! Give us money!
City AM: Redrow calls for state help on mortgages
More Blue Socialism from the landowning classes, for and on behalf of the Home-Owner-Ists.
Posted by mark wadsworth @ 11:31 AM (1322 views) Add Comment
13 Comments
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1. uncle tom said...
Mandy Rice-Davies' famous quote comes to mind..
2. mark wadsworth said...
UT, well you would say that, wouldn't you?
3. ontheotherhand said...
Wouldn't it be a lot simper to just give tapayer's money straight to Redrow and to everyone who has a property already?
Or why stop at guaranteeing 95% of the purchase price? Why not guarantee 115% loan at a risk free rate so then the FTBers can splurge on a big telly, jacuzzi, and a BMW 3 series to keep the whole 'GDP' thing going. Then when that stimulus to the pyramid scheme runs out of steam, then offer the next generation of FTB 150%. I guess the whole thing would only collapse when the average age of FTBers reaches 45...
Whilst we're at it, what other industries deserve government backed credit lines to their prospective customers?
4. cyril said...
@3 arms manufacturers, civil engineering companies etc.
5. jack c said...
@ontheotherhand - Liverpool football club
6. Crunchy said...
Did long suffering FTBers that were priced out of the market by any sensible measure get mortgage help?
Quiet the opposite.
7. Joestrange said...
If its such a cheap an no brainer thing to do why doesnt redrow essentially stand as gaurentor?
8. mick rupert said...
"THE head of housebuilder Redrow called on the government to take action over the sickly first-time buyer market in a bid to revive overall sales, after reporting better-than-expected annual results."
Or... DROP THE PRICE TO MATCH CREDIT AVAILABILITY!!
"“An insurance policy will cost the government next to nothing"
Or... SOMEONE MISSED THE WHOLE BANK DERIVATIVE MELTDOWN THAT TOOK OFF IN 2007 WHICH WAS ROOTED IN THE MISALLOCATION OF RISK IN THE VERY FIRST PLACE, I.E. SO-CALLED INSURED BETS!!
Jeez, this guy "Steve Morgan, the founder of Redrow who returned in a boardroom coup last year" is clueless to the extreme. What a profound lack of savvy from a so-called leader of industry.
And he calls it a “no-brainer”. Has someone been toking on the ole ecstasy pipes??
No, he (and the shareholders) will no doubt make a ton of money in the short term if this went ahead. He (and the shareholders) are just out to feather their own nests.
The only depressing thing is how little the populace appear to understand this.
Perhaps with the next crash we'll start to see a populace with the grim reality dawning and bloodlust for the perpetrators such as him...
9. sibley's b'stard child said...
"Mortgage availability has remained depressed since the credit crisis, meaning that first-time buyers typically need a deposit of 20 per cent, from an average six per cent before the crisis, he added".
Good god, the average deposit was just 6% during the boom? No doubt skewed by the huge number of 100% LTV/self-cert/IO shennanigans.
10. mark wadsworth said...
@ On the other hand, comment 3: "Wouldn't it be a lot simper to just give tapayer's money straight to Redrow and to everyone who has a property already?"
Indeed. As a simplification campaigner, it strikes me that we could roll a lot of subsidies into negative LVT, i.e. ag land subsidies, mortgage interest for unemployed, MIRAS, interest rate subsidies (which only benefit people with mortgages), council tax discounts etc. We could have a flat 2% annual subsidy to the market value of all privately owned land/buildings, and to make this perfectly anti-Georgist, we could fund this with a flat Poll Tax on everybody (to be the negative of a Citizen's Dividend).
11. Daniel said...
"It is actually a no-brainer to get the housing market back again,” added the housing industry veteran, who also runs Wolverhampton Wanderers football club.
Yes it is mate. REDUCED YOUR RIDICULOS PRICES, OR FORGET IT.
12. Yorkshire_lad said...
I never understood how the same pile of bricks could increase in price month on month from the builders merchant so much as soon as he house builders got hold of them.
13. Adam Smith Fan said...
Anti-Georgism. Love it! We'd also need to implement as many protectionist tariffs as possible and replace the Single Tax by Multiple Taxes, lots of them. So Poll Tax plus a bunch of arbitrary taxes and fees. That should suck cash out of the average punter's pockets so fast that you'd could hear it from Mars. Oh, wait a minute...
Aren't they already doing that ?