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workingpoor

Clegg: We Could Pare Back Help To Buy

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The government's Help to Buy scheme could be "pared back" if the Bank of England believes the housing market is overheating, Nick Clegg has said.The deputy prime minister was speaking after Bank governor Mark Carney warned of the dangers the booming market posed to long-term financial stability.Mr Carney said the Bank was considering providing advice on "changing the terms" of the mortgage help scheme.He also said not enough homes were being built to meet demand.Prime Minister David Cameron said Mr Carney was "absolutely right" that not enough new houses were being built, and said Help to Buy had been "hugely helpful" in bringing forward new developments.url=""]http://www.bbc.co.uk/news/business-27461692[/url]

Edited by workingpoor

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They know a crash is coming, and are just trying to position themselves so they don`t look too stupid. Many sheeple probably equate "recovery" with ever rising HPI. It will come as a shock to many when house prices start to plummet.

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They know a crash is coming, and are just trying to position themselves so they don`t look too stupid. Many sheeple probably equate "recovery" with ever rising HPI. It will come as a shock to many when house prices start to plummet.

It will take quite a few years of falling prices to convince them that it's not just another buying opportunity! But I concur, even with all the heads up, it will still come as a shock to many people!

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Crash speed ahead in my opinion. This whole circus is going to unwind well before the election and they know it.

My money is on prices slowing over the next few months before an almighty correction during the winter.

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More 'would', 'could', 'if there's a bubble' nonsense though...

They don't have to act if they never admit there's a bubble - they just need to stay 'vigilant' as they were when interest rates were off track for 5 whole years!

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Crash speed ahead in my opinion. This whole circus is going to unwind well before the election and they know it.

My money is on prices slowing over the next few months before an almighty correction during the winter.

Yes, a big unwinding in the housing market would be excellent going into a general election. The B.S that they would be forced to talk would be comedy gold. It would be nice to see a couple of big banks get into trouble again, we haven`t had one of those for a while.

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So Clegg also wants Carney to be responsible for deciding whether or not to continue with HTB. Makes you wonder why we bother having ministers and Parliament and all that nonsense. Let's just delegate every decision to the governor of the Bank of England, after all he's "independent" so he's bound to get it right.

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The FED is winding back its QE program.

Itslooking at rasing IRs slowly to more normal levels - 3% 4%

The Fed is much more diverse and democratic than the BOE.

The Fed is not (entirely) capture by wall street; there's a a lot of members who see QE as abail-out for wall street and a hazrd foir main street.

These people are in the ascendency at the mo.

The BOE has to match what the Fed does - like it or not.

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I must have missed the discussion on htb and MMR interactions. Is there something weird where one can loophole the MmR under a htb loan ? I haven't done the maths but wouldn't MMR kill off htb?

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Seems to me that they are playing a policitical game of who blinks first in public.

The government are trying to save there arses in case it all goes wrong, the BoE are doing the same. Its a lot of show where if they really wanted to they could both sort out the housing market right now.

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Clegg's an idiot, he is being played by his coalition partners.

If HTB was pared back and it goes horribly wrong or there are some other disastrous unforeseen consequences, Cameron will lay the blame on Clegg. If by some miracle it works, Cameron will claim it was his idea and implemented by his government.

Either way Clegg looks stupid and his party will be even more upset with him. At this point the Liberals Democrats need to withdraw from the coalition, no point staying in as not much will get done over the next year. They then need to lie their through their teeth to try and retain some of their vote at the next general election.

What I expect will happen is they will implode after the European elections and the party will fade away.

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I don't think it's an ass coverign exercise. It's all choreographed to let them keep the plates spinning. I think they've been taken aback by the media and popular reaction to another bubble - they thought it would be hugely popular. So they're responding to that by saying they're being "vigilant". But none of Carney, Clegg, Cameron or Osborne has the slightest intention of doing anything before the election as it would reverse the sliver of economic growth we currenty have.

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this does appear to be the start of a change in tone of voice from the PTB, they can see this really is a problem with potentially disatarous consequences.

they had opportunity to let the bubble deflate and stagnate and then set about a large scale UK building program. but VI's are VI's and it's all free money for those who got on the ponzi early.

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this does appear to be the start of a change in tone of voice from the PTB, they can see this really is a problem with potentially disatarous consequences.

they had opportunity to let the bubble deflate and stagnate and then set about a large scale UK building program. but VI's are VI's and it's all free money for those who got on the ponzi early.

That's the nub of it. The opportunity was there four/five years ago to drive the bubble of phantom equity out of the housing market and build a million new homes. Osborne chose instead to spend a trillion pounds holding up house prices and subsidising mortgages and financed his borrowing in part by hiking VAT and attacking the needy. Stupid or wicked, who can say, but for certain utterly counter-productive. So now we're back to 2008. Housing has yet again hit the ceiling of affordability but Osborne's colossal debts preclude him from continuing to defy the market. This time even the option to build is denied us. We simply cannot afford it.

uk-debt-interest-payments-total.png

Edited by zugzwang

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They know a crash is coming, and are just trying to position themselves so they don`t look too stupid. Many sheeple probably equate "recovery" with ever rising HPI. It will come as a shock to many when house prices start to plummet.

It will take quite a few years of falling prices to convince them that it's not just another buying opportunity! But I concur, even with all the heads up, it will still come as a shock to many people!

Let's not get too caring about the positions of owners on possible future outcome of a price softening... after suffering years of HPI and years of crazy reflation (QE/FLSHTB).

Most of them are now soundly asleep, in lovely homes worth fortunes, proud of how much their homes are worth, planning BTL with pension, wanting prices to go even higher etc.

Who cares if the are shocked? They're not kicking off about the great unfairness on younger non-owners. It's a market.

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Let's not get too caring about the positions of owners on possible future outcome of a price softening... after suffering years of HPI and years of crazy reflation (QE/FLSHTB).

Most of them are now soundly asleep, in lovely homes worth fortunes, proud of how much their homes are worth, planning BTL with pension, wanting prices to go even higher etc.

Who cares if the are shocked? They're not kicking off about the great unfairness on younger non-owners. It's a market.

I agree they will be hoping prices go higher, but many won`t be sleeping soundly, as they know they borrowed to much. What I really should have said is that the speed and depth of the drops will shock even those who are regulars on here. Is that sympathy free enough for you? :P

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I must have missed the discussion on htb and MMR interactions. Is there something weird where one can loophole the MmR under a htb loan ? I haven't done the maths but wouldn't MMR kill off htb?

Yes, all this BS about affordability. While government itself is borrowing money to guarantee advances to folks who can't afford a loan through commercial channels. Contrary signals for sure. If government said, "Look we want house prices to be higher so we're going to borrow a couple of hundred billion pounds and use it to bid up the prices of scarce housing stock" it would at least be honest.

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That's the nub of it. The opportunity was there four/five years ago to drive the bubble of phantom equity out of the housing market and build a million new homes. Osborne chose instead to spend a trillion pounds holding up house prices and subsidising mortgages and financed his borrowing in part by hiking VAT and attacking the needy. Stupid or wicked, who can say, but for certain utterly counter-productive. So now we're back to 2008. Housing has yet again hit the ceiling of affordability but Osborne's colossal debts preclude him from continuing to defy the market. This time even the option to build is denied us. We simply cannot afford it.

uk-debt-interest-payments-total.png

2005 should have been the end of the madness. It was obvious by then what was happening/had happened...but they just kept pumping.

Can they keep pumping now ? I doubt it.

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2005 should have been the end of the madness.

Not possible. For one it was an election year and two, Gordon Brown was still hell bent on becoming Prime Minisiter. <_<

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