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Government ‘encouraged’ Housing Credit Binge

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GOVERNMENT ‘ENCOURAGED’ HOUSING CREDIT BINGE

The UK housing credit binge was encouraged by the Government to meet the cost of supporting an aging population, according to researchers at the University of Warwick.

In a new book called The Politics of Housing Booms and Busts, Professor Len Seabrooke and Professor Matthew Watson from the University's Centre for the Study of Globalisation and Regionalisation, investigate the credit binge on housing during the past decade.

They argue the Government encouraged people to invest in housing assets as a way of accumulating wealth and making them less reliant on public pensions when they reached retirement.

The book, which is co-edited by Professor Hernan Schwartz from the University of Virginia, compares case studies from across the world and examines why Britons allowed themselves to get into higher levels of personal debt with no real safety net.

Professor Watson said: "The Labour Government has responded to concerns about the future affordability of public pensions by pressing for a move towards an asset-based system of welfare.

"The housing market has become particularly important as a primary route through which the process of asset accumulation takes place, but of course this does mean that the whole of the Government's welfare policy becomes increasingly tied to the ability of the housing market to sustain continual price increases."

The book also investigates the connections between mortgage securitisation and the current international financial crisis.

Should prove to be an interesting read.

Hopefully books and articles like this will break into the mainstream and expose the state sponsored fraud and complete moral failings of our government.

Sadly, it is us, the little guys, who are getting screwed in any event.

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"The Labour Government has responded to concerns about the future affordability of public pensions by pressing for a move towards an asset-based system of welfare.

So they can tax it off you again when you are in retirement.

£20k health care tax anyone?

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The housing bubble, the pensions crisis and the government debt are all one and the same. Each is a massive transfer of wealth from the young to the baby boomers, and each has been aided and abetted by politicians who see nothing wrong with destroying the nation as long as it gets them some votes and keeps them in power. No one is talking about this, but this is really a crisis of democracy. The Chinese are going to be picking up the pieces after the western democracies have destroyed their economies because they have the backbone to refuse the easy, short-term handouts to spoiled, selfish baby-boomers.

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This is one reason why the govt is panicking, it's golden goose turned out to be an illusion. Asset prices fall and rise, basing your economic policy around that is foolish in the extreme.

However the short term political gain can be immense although the risks are huge if you get caught in the asset price crash.

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The housing bubble, the pensions crisis and the government debt are all one and the same. Each is a massive transfer of wealth from the young to the baby boomers, and each has been aided and abetted by politicians who see nothing wrong with destroying the nation as long as it gets them some votes and keeps them in power. No one is talking about this, but this is really a crisis of democracy. The Chinese are going to be picking up the pieces after the western democracies have destroyed their economies because they have the backbone to refuse the easy, short-term handouts to spoiled, selfish baby-boomers.

What did those boomers who are poor get out of it?

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They argue the Government encouraged people to invest in housing assets as a way of accumulating wealth and making them less reliant on public pensions when they reached retirement.

The flaw with this line of thinking is that anyone that bought a new build in the last decade, will be extremely lucky if their 'housing asset' is still standing by the time they reach retirement. :lol::lol::lol::lol:

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Guest An Bearin Bui
The housing bubble, the pensions crisis and the government debt are all one and the same. Each is a massive transfer of wealth from the young to the baby boomers, and each has been aided and abetted by politicians who see nothing wrong with destroying the nation as long as it gets them some votes and keeps them in power. No one is talking about this, but this is really a crisis of democracy. The Chinese are going to be picking up the pieces after the western democracies have destroyed their economies because they have the backbone to refuse the easy, short-term handouts to spoiled, selfish baby-boomers.

This is true to an extent but I don't think it's consciously aimed at the baby boomers as one group. I think that we basically have an unproductive economy with most productive value being outsourced abroad or otherwise destroyed and as a result wages are deflating and stock market growth is anaemic. The government doesn't actually have any idea of how a productive economy should work and so is eager to clutch onto any shred of wealth 'creation' they can find.

Their inability to distinguish between wealth creation and wealth transfer did sustain support for the housing bubble. Either way, the goal is to get those of us who are productive to shell out to support those who don't produce while the number of people who don't produce is growing and the level of productivity of those left declines.

Very interesting book, by the sounds of it. I'll have to get it.

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ive saved meself a tenner on the book by learning from this very forum.

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What was the government proposing to do when a studio slave box cost several billion pounds? It only works if you find a next generation of suckers to dig themselves into even bigger amounts of debt, and persuade them its "affordable."

Ah yes answer my own question. They would be out of office on lucrative contracts/pensions by then.

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And how much has it cost in works time? :P:P

well, I suppose I could be teleselling, but I dont want to talk to strangers and risk catching Swine flu over the phone.

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The boomers hate getting old and gubbed and don't want to die. They know they will of course, so their egos are telling them to crash the society they created, so that future generations can't enjoy what they enjoyed.

What kind of warped mind want's their kids and grandkids to have a lower quality of life than them?? They forget that they're just passing through. The end will come for them, the same as every other generation.

Insecurity is rampant with these old buggers. A tragic bunch and no mistake. :rolleyes:

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The boomers hate getting old and gubbed and don't want to die. They know they will of course, so their egos are telling them to crash the society they created, so that future generations can't enjoy what they enjoyed.

What kind of warped mind want's their kids and grandkids to have a lower quality of life than them?? They forget that they're just passing through. The end will come for them, the same as every other generation.

Insecurity is rampant with these old buggers. A tragic bunch and no mistake. :rolleyes:

Ha Ha, its not the boomers forcing prices up, its the 30 something Mortgage brokers and house buyers that did that. The boomers would NEVER have fallen for the old "buy now or you NEVER will be able to" con.

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Ha Ha, its not the boomers forcing prices up, its the 30 something Mortgage brokers and house buyers that did that. The boomers would NEVER have fallen for the old "buy now or you NEVER will be able to" con.

It's the boomers to blame and that's it.

They voted in Thatcher and that old shaker Reagan. Then they listened to all their bullsh1t about how everyone can be rich. Insecurity took hold as the neighbours all bought Ford Orions.

This behaviour sealed our fate. I pity the lot of them.

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It's the boomers to blame and that's it.

They voted in Thatcher and that old shaker Reagan. Then they listened to all their bullsh1t about how everyone can be rich. Insecurity took hold as the neighbours all bought Ford Orions.

This behaviour sealed our fate. I pity the lot of them.

its always someone else! :lol: . do you work in the public sector?

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its always someone else! :lol: . do you work in the public sector?

Jobs for life and gold plated pensions were the good old days, along with affordable shelter. You know this.

I'm not blaming the old ones for the way they behaved, I'm just saying it's their fault for the state we now find ourselves in. It's all because of insecurity. They believed those adverts for BL's cars, hoping they could be cool and "with it".

Oh dear. :rolleyes:

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Jobs for life and gold plated pensions were the good old days, along with affordable shelter. You know this.

I'm not blaming the old ones for the way they behaved, I'm just saying it's their fault for the state we now find ourselves in. It's all because of insecurity. They believed those adverts for BL's cars, hoping they could be cool and "with it".

Oh dear. :rolleyes:

the Austin Princess was a personal favourite.

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...a lot of the little guys were only too happy to join the great delusionist Brown in his Ponzi scheme claiming Economic heaven.....he designed the 'bust' and the lemmings joined in..... <_<

Yeh, there's too many little guys who want cracked with a bat for acting like tits.

There's not enough rope or trees to go round all the bullsh1ters who took out LIAR LOANS!!

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Yeh, there's too many little guys who want cracked with a bat for acting like tits.

There's not enough rope or trees to go round all the bullsh1ters who took out LIAR LOANS!!

...and the law has not initiated proceedings against enough of them and the people who 'helped' the loan applications to gain their commissions.......the Ponzi scheme operatated at many levels .... <_<

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