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Sledgehead

Mortgage Bubble Advocate Invited To Join Government

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My apoplectometer was pinned once more this morning by another unfathomable government appointment. I thought Allsopp and Hutton were about as bad as it could get, but now, if the Telegraph is to be believed, Call-Me-Dave is about to hand influence to yet another bubble architect, by appointing Alan Milburn tsar of "social mobility".

For those with short memories let me remind you of the role played by this guy in inflating our mortgage debt bubble:

Assets for all

"If Labour promotes wider property ownership, it will both satisfy voters' aspirations and reduce inequality

Labour's future agenda has to open up life opportunities for more people ..

More flexible forms of borrowing could be developed with mortgage lenders.

To date they have been overly cautious in promoting packages aimed at lower-income households.

We should explore whether a right to buy or partially buy can be extended to housing association tenants, ..

Thousands of people have already benefited from programmes like Homebuy

that remove barriers to home ownership. But we are just scratching the surface.

You only have to look across the Atlantic to see what could be done.

US government-sponsored enterprise companies

have helped 58 million low- and moderate-income families buy their own homes."

-

Alan Milburn, November 10 2003, former Health Secretary who went on to run the 2005 election campaign

Allow me to re-emphasise, from the above quote, the tool this guy intended to use to fulfill his Cameron-newly-appointed role in "Social Mobility" back in 2003 :

"If Labour promotes wider property ownership, it will both satisfy voters' aspirations and reduce inequality."

-

Alan Milburn, November 10 2003, former Health Secretary who went on to run the 2005 election campaign

As we know, it didn't quite pan out that way. Instead, the bubble and its inevitable bursting has consigned those who took on unaffordable Milburn-debts to the financial scrap heap, whilst the already-rich banksters who sold them the loans became super-rich, whilst the neediest have found their social safety net ripped from under them to be hastily strung beneath creaking banks. The mind boggles as to what Cameron, so critical of the Labour debt bubble, believes we can learn from this debt-pusher.

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I actually don't see how promoting home ownership (as opposed to speculation) promoted the bubble. Special schemes to help the poor be a bit more aspirational - based on bettering themselves not living off the state - were and are to be applauded.

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I actually don't see how promoting home ownership (as opposed to speculation) promoted the bubble. Special schemes to help the poor be a bit more aspirational - based on bettering themselves not living off the state - were and are to be applauded.

That's not the point. Milburn was promoting home ownership by means of loosening credit lending standards. That's the problem. It increases inequality and eventually crashes the economy!

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I actually don't see how promoting home ownership (as opposed to speculation) promoted the bubble. Special schemes to help the poor be a bit more aspirational - based on bettering themselves not living off the state - were and are to be applauded.

I must have a go at this "bettering myself" by material desire alone. Sounds real easy. Here goes:

"I want, I want, I want"

How'd I look? Any "better"? :lol:

Edited by Sledgehead

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The elites are openly laughing at people now.

"We're all in this together" cracks me up every time that one.

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Out of principle, it disgusts me. As a pragmatist however, buying these money grabbing bastards off might be the only realistic way forward, unless you want them and their friends in the media elite to be spewing mickey mouse revisionist pro-Gordon propaganda 24/7.

I hope.

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I actually don't see how promoting home ownership (as opposed to speculation) promoted the bubble. Special schemes to help the poor be a bit more aspirational - based on bettering themselves not living off the state - were and are to be applauded.

Hmm, state subsidised schemes to stop people living off the state.

I want to believe it, but just cant.

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In the US the FHA has been a primary bubble blower, unrepayable debt creator and still is.

This sort fo thing is definitely part of the problem.

http://www.mortgageloan.com/are-fha-loans-the-next-subprime-bubble-3311

Are FHA Loans the Next Subprime Bubble?

By:

Tom Kerr - MortgageLoan.com

As the Federal Housing Administration (FHA) prepares to ask Congress for another $800 million in rescue funds, many industry experts predict that FHA loans will soon become the new version of bad credit subprime mortgages. That could trigger a new foreclosure avalanche.

During the expansion of the housing bubble, subprimes were all the rage, and the FHA saw its affordable loan business fall off by about 80 percent. But in the wake of the subprime collapse, the FHA was authorized to double the maximum amount of mortgages that it insures. Now it's possible to borrow as much as $719,000 with an FHA-insured loan, at a time when these affordable loans are back in vogue with a vengeance. But many mortgage industry observers wonder whether the increasingly popular FHA mortgage products are setting the nation up for another costly foreclosure epidemic.

FHA back in power

The problem is that while FHA loan activity has surged, the default rate on these suddenly trendy loans has soared. If the momentum continues, it could set off a whole new wave of foreclosures across the U.S., just as the nation begins to see signs of a recovery from the subprime meltdown. Lots of people are now facing unemployment and other financial hardships as the economy struggles to survive. Many people who bought pricy houses with FHA loans now have no job, no income, and bad credit. Walking away from their mortgage debt and letting the bank foreclose is an option that many Americans are choosing. That leaves the FHA-and taxpayers-in a dangerously precarious position. The FHA doesn't directly lend to homeowners, but it does insure loans. When those mortgages fail to turn a profit, the FHA is often forced to pay a subsidy to offset the losses of the mortgage lenders involved.

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The elites are openly laughing at people now.

"We're all in this together" cracks me up every time that one.

+1. Absolutely. What a bullsh*t appointment. The key to increasing social mobility would be decent selective state education

combined with a forced shut down of the public school system.

Are the Tories going to do any of that? My **** they are.

Toreis, labour, lib-dems, its all nonsense, they are all in the bankers pockets. Just expect more of the same.

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The elites are openly laughing at people now.

"We're all in this together" cracks me up every time that one.

I like the Animal Farm elites version, which concludes : "It's just that some are more in it than others."

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My apoplectometer was pinned once more this morning by another unfathomable government appointment. I thought Allsopp and Hutton were about as bad as it could get, but now, if the Telegraph is to be believed, Call-Me-Dave is about to hand influence to yet another bubble architect, by appointing Alan Milburn tsar of "social mobility".

For those with short memories let me remind you of the role played by this guy in inflating our mortgage debt bubble:

Assets for all

"If Labour promotes wider property ownership, it will both satisfy voters' aspirations and reduce inequality

Labour's future agenda has to open up life opportunities for more people ..

More flexible forms of borrowing could be developed with mortgage lenders.

To date they have been overly cautious in promoting packages aimed at lower-income households.

We should explore whether a right to buy or partially buy can be extended to housing association tenants, ..

Thousands of people have already benefited from programmes like Homebuy

that remove barriers to home ownership. But we are just scratching the surface.

You only have to look across the Atlantic to see what could be done.

US government-sponsored enterprise companies

have helped 58 million low- and moderate-income families buy their own homes."

-

Alan Milburn, November 10 2003, former Health Secretary who went on to run the 2005 election campaign

Allow me to re-emphasise, from the above quote, the tool this guy intended to use to fulfill his Cameron-newly-appointed role in "Social Mobility" back in 2003 :

"If Labour promotes wider property ownership, it will both satisfy voters' aspirations and reduce inequality."

-

Alan Milburn, November 10 2003, former Health Secretary who went on to run the 2005 election campaign

As we know, it didn't quite pan out that way. Instead, the bubble and its inevitable bursting has consigned those who took on unaffordable Milburn-debts to the financial scrap heap, whilst the already-rich banksters who sold them the loans became super-rich, whilst the neediest have found their social safety net ripped from under them to be hastily strung beneath creaking banks. The mind boggles as to what Cameron, so critical of the Labour debt bubble, believes we can learn from this debt-pusher.

Good one sledgehead! Please, please, send it to all newpapers at once! Milburn is about the worst appointee for this oosition, if one is needed atall in the current economic climate.

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Ahh... the bloke that was coining it while in the government by promoting policies that helped the company he worked for.

Why are you surprised? Milburn couldn't be more of a Tory if he were Lord Ashcroft.

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That's not the point. Milburn was promoting home ownership by means of loosening credit lending standards. That's the problem. It increases inequality and eventually crashes the economy!

s the achilles heal of capitalism - it will always have booms and busts and you can blame thatcher brown and anyone else you like, but the fundamental problem is 'unintended consequences'. In which case abandon capitalism and live like the north koreans.

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It turned out to be a double edged sword.

To encourage the poorer end of society into owning their own homes had unforeseen consequences as this excellent backgound paper by Gramlich (now deceased) shows. He traces the sequence of events from the ending of the usury laws on interest rates, outlawing the red lining of areas etc etc that were taken stepwise to encourage lending to the poor.

Basically even back then the issues of how foreclosure can wipe out the entire wealth of a family and blight neighbourhoods was known.

He even highlighted the fact that the true level of default was being hidden by rising house prices and were they ever to stop rising.....

http://www.federalre...521/default.htm

nice post

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I like the Animal Farm elites version, which concludes : "It's just that some are more in it than others."

Orwell/Blair was an "old Etonian! (where have u heard that before) - they are in it (conspiracy) together.

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  • 244 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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