A Noble Lord Gets It

[bristolhunter]

Good contribution from Lord Oakeshot yesterday.

There is a simple and very serious problem that house prices are horribly and unaffordably high in this country. I go beyond the people who argue for stability, and say that prices are too high and need to come down

[@contradevian]

Hill walking or a polonium tipped umbrella methinks?

[Venger]

Hill walking or a polonium tipped umbrella methinks?

A very good read. Stability being the buzz word of those who want to lock in all the ridiculous HPI gains, and override free markets, especially not caring a thing for those who've saved. Cheated by QE and other stimulus, to protect the gains for others, and protect those who overborrowed/overpaid.

There are two reasons house prices did not fall as much as one would have expected during the crash, and why they have gone up faster than they otherwise would have done. One is, of course, quantitative easing—£370 billion of credit pumped into the economy—which was necessary to avoid the economic patient’s dying of a heart attack at the time but has a lot of serious after-effects. The other is the Funding for Lending scheme. Just in passing, again, if you think this is wild left-wingery from me, the chief executive of Legal & General, no less, was describing quantitative easing as a policy devised by the rich for the rich. There is no doubt that it has helped push up prices of all sorts of assets, including housing.

[interestrateripoff]

It's not stability they are after it's stagnation, anything barring house prices correcting.

[@contradevian]

To return to what the noble Lord, Lord Borwick, was talking about regarding resistance to development, I am not personally against a bit of nimbyism, “not in my back yard”. After all, that is local democracy and people are able to argue that. What we must fight against is the attitude there often seems to be of BANANAism. I do not know if your Lordships’ know about BANANAism, but it means “build absolutely nothing anywhere near anyone”. I am afraid that that is the attitude of some people.

Most home owners methinks

[shindigger]

Things must be bad.

Lord Funky Yellow socks can't afford any more BTLs.

I'd take absolutely no notice of this VI.

[Venger]

Just reminded myself of his previous conflicted position. He has his own thread from 2010.

3 years later and we're getting done over even more with HTB1+2 debt-help pay the prices older people/landlords/ want for their homes. The 5% deposits they wanted to help us, versus the sensible 30% at much much lower house prices.

Newsnight exchange.

However Mandatory Listening from 17:00. The exchange only lasts for about a minute between Oakeshott and the Banker. But is most enlightening.

[Discussing 30% deposits for FTB'ers.]

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Oakeshott: "You need a 30% deposit to get a [mortgage] deposit at a decent rate. They [the banks] are not doing their basic job of lending to homebuyers. And they are failing the country still"

Banker: "No unless you're proposing to have 5% down, to get a mortgage, and banks to lend Northern Rock type figures of 125% again?"

Oakeshott: "No No absolutely not! Do you seriously think that people should find a 30% deposit to get a house?!"

Banker: "That's sounds reasonable to me Yeh."

Oakeshott: "Its ridiculos! what chance have ordinary people got to get a house?! Youre totally out of touch with ordinary people in this country! What chance have they got of getting a house?!"

Banker: "I am not out of touch with ordinary people. If you're saying that banks should have a proper equity cushion, how can you then say that homeowners should not have a proper equity cushion?!"

Indeed....................

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Gavin from Newsnight then interrupts, and ends the debate. Just at the most interesting point.

Presumably as the BBC's unwritten policy is 'dont let them talk too much or they might actually begin to tell the truth about the economic situation, and how we got here.

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This is the beginning of VI Panic in the Treasury.

*But Is it also unwritten treasury policy?*

It sounds like elements want the ponzi scheme to continue, because UK debt is at £6 trillion, is basically unpayable in our lifetimes, and rather than let house prices return to affordable levels, they have simply decided, without daring to tell us, that out of pure self interest, they may as well keep the stolen profits themselves, not let a crash occur, pass the debt onto us, and keep us in debt slavery?

Working for nothing. No capital. Forever.

If they would simply come out and tell us one way or the other, it would help many of us decide whether to take to the streets 'greek style' or continue trying to work and be productive members of society

I am not working for nothing for another decade. Had enough. Past Caring.

The Government and the banks have already stolen tens of thousands of pounds from me in 'wasted rent' via liar loans etc.

[Nice Find TOW]