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Brown Caused The Buy-To-Let Boom

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http://www.mortgagestrategy.co.uk/latest-news/brown-sparked-b2l-boom-says-lord-lawson/1013020.article

Brown sparked B2L boom, says Lord Lawson

7 June 2010

By Robert Thickett

Former chancellor Lord Nigel Lawson has blamed former Prime Minister Gordon Brown’s cutting of Capital Gains Tax in 1997 for the subsequent boom in buy-to-let.

Lawson, who was chancellor from 1984 to 1990, made the com-ment in an interview with the BBC last week, in which he criticised Brown for lowering the CGT level he had previously set.

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Nigel was 100% correct.

Brown thought he could create perpetual motion in economics and win a Nobel Prize for his efforts. The scheme was a simple one. You spark inflation in house prices and turn every home into an economy supporting ATM machine. You eliminate boom and bust so there is no danger of a house price crash.

There was, however, a fly in the ointment. You cannot beat the market and markets are cyclical.

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I think they are both too blame ,

Lawson having a go a Brown is a bit rich , since he caused the massive bubble of 88, by not knocking double miras on the head overnight and creating a stampead to buy in the spring and summer of 88 ( cutting interest rates at the same time. ) this led to the bust when interest rates went through the roof at the end of 88 and on inot 89.

After I lost my job in 89 I asked the building society if i could rent my flat out as I could not afford to pay for it. They said no I said well your choice if i cannot let it out then it will be repossessed , as i can not pay the mortgage. I let it out for a year untill I got back on my feet , without informing them .

There were a lot of people doing this with or without telling their lenders , they became know in the industry as GHOST landlords.

I think this led the lenders to see that there was a market for BTL, and the government say that there was a need . This is how BTL came into being.

Thought CGT was changed in 2007 , not 1997 ten years lost here.

Edited by miko

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Nigel was 100% correct.

Brown thought he could create perpetual motion in economics and win a Nobel Prize for his efforts. The scheme was a simple one. You spark inflation in house prices and turn every home into an economy supporting ATM machine. You eliminate boom and bust so there is no danger of a house price crash.

There was, however, a fly in the ointment. You cannot beat the market and markets are cyclical.

An ATM hands out your already monetised assets.

a house requires the new monetisation of ponzi value.

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http://www.mortgagestrategy.co.uk/latest-news/brown-sparked-b2l-boom-says-lord-lawson/1013020.article

Brown sparked B2L boom, says Lord Lawson

7 June 2010

By Robert Thickett

did he cause the one in the US as well?

what about the one in ireland??

methinks he was acting under orders.

gordon,as his name testifies,is just a gopher.

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Nigel was 100% correct.

Brown thought he could create perpetual motion in economics and win a Nobel Prize for his efforts. The scheme was a simple one. You spark inflation in house prices and turn every home into an economy supporting ATM machine. You eliminate boom and bust so there is no danger of a house price crash.

There was, however, a fly in the ointment. You cannot beat the market and markets are cyclical.

Perfectly rational thinking for a Chancellor - however he was obviously hoping to have retired from office well before the SHTF though...

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Oracle has a point.

The current ponzi mentality was created in the USA by the MBSs churned out in the 60s and 70s - Graduates from European schools aped the apparent success of their US role models and the rest as they say. The US right-of-right-wing's notion of free market increased the velocity of money, and the leverage of the banks to a point where its now a chimera - the original philosophies are flawed and we need a new model. I hold NO hope taht model will come from the USA or UK. Europe must survive and lead the way. The chimera of freedom is evident to those of us who contracted out of SERPs, and who have watched Building Societies get turned into investment banks, acting as mortgage broker and estate agent. I was horrified recently to see that Halifax has High St. real estate shops. The poacher is the game-keeper.

did he cause the one in the US as well?

what about the one in ireland??

methinks he was acting under orders.

gordon,as his name testifies,is just a gopher.

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<br />Oracle has a point.<br /><br />The current ponzi mentality was created in the USA by the MBSs churned out in the 60s and 70s - Graduates from European schools aped the apparent success of their US role models and the rest as they say. The US right-of-right-wing's notion of free market increased the velocity of money, and the leverage of the banks to a point where its now a chimera - the original philosophies are flawed and we need a new model. I hold NO hope taht model will come from the USA or UK. Europe must survive and lead the way. The chimera of freedom is evident to those of us who contracted out of SERPs, and who have watched Building Societies get turned into investment banks, acting as mortgage broker and estate agent. I was horrified recently to see that Halifax has High St. real estate shops. The poacher is the game-keeper. <br /><br /><br /><br /><br /><br />
<br /><br /><br />

We had that sussed out around 2006 on 'ere!!

The banks Building Societies (covertly?) ran/owned chains of estate agents for market manipulation (remember F.A's who ONLY pushed certain 'tied' mortgages/loans inhouse/only let you view house if you agree to take our loans!) - that's why so many have survived on reducing turnover for years!

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http://www.mortgagestrategy.co.uk/latest-news/brown-sparked-b2l-boom-says-lord-lawson/1013020.article

Brown sparked B2L boom, says Lord Lawson

7 June 2010

By Robert Thickett

Interesting article.

And besides reducing taxes on properties, Brown also increased taxes on pensions.

And he forced interest rates down (RPI x CPI in 2003), punishing savers, and rewarding borrowers.

All these factors inflated the bubble in credit/debt/property prices.

And pushed sterling up, punishing our exporters, and benefiting imports.

What a Chancellor... :( He did serious and permanent damage to Britain. We will never catch up completely.

Not to mention the unequal burden. Only those who happened to own a property already in 2003 or 04 may have benefited (and only relatively, and only in the short term, because they too will go down with the rest of the country eventually.) Those who didn't own a property - mostly the younger generations - will bear an even greater cost, including today's children.

.

Edited by Tired of Waiting

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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