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Help To Buy - Tbo

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I've just seen the film 'The Big Short' and thought I'd use an investment banking acronym (made up but true, tax payers backed obligation).

As it's now more than 5 years since the government kindly offered stupid people the chance to bid up house prices with helicopter money via the builders (probably no more than a ledger on their balance sheet booked as instant profit) how are they going to realise these profits now that the loans are being called in? Are we going to see defaults and is the general public going to stomach a bail - in?

The mortgage providers obediently treated the 20% as customers deposit and finding 5% either through 10 years hard saving (£100 a month maybe) or bank of mum/dad is no feat translating to 0.5% housing capital per annum (40x Help to Buy = 20 years equivalent of slavery).

The way I see things this is our own gold plated AAA rated dog turd and a baked in economic downturn, flat wages (over that period) and modest house price falls (<10%) will see this whole scheme blow - up. If they wish to sell they'll need to find a greater fool and the comments in bubbly house price mail articles suggests people are wising up and for that reason I predict if no further intervention is brought forward then 2016/2017 should be when the market corrects.

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The way I see things this is our own gold plated AAA rated dog turd

Brown plated, surely? :lol: Or maybe even white plated given the dog turds I used to see on the pavements back in the eighties.

Can't be much fun being an over-leveraged mortgagee at the moment.

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