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bomberbrown

Plan To Revive Mortgage Lending

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Securitisation/passing on of mortgage debt (and risk) to investors is what got us into this mess.

Now they have stopped buying all this toxic $hit, an ex-banker's solution is to get the Government to take over?! :lol:

STOP PLEASE I CANNOT TAKE ANY MORE!

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I've been convinced all along that eventually the credit crunch will pass, and that the taxpayer will be footing the bill...

Come on, the middleclass taxpayer is the easy target. (Bit like motorists etc) Who ever believed anyone else would foot the bill?

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Cox: "very little lending that was irresponsible..." - quickly rubbished by Cable.

In the preamble Peston says Darling knows he can't buck the trend of falling prices but is worried about it overshooting (down) and wants "in a sense" to try and minimise the damage.

...wonder where he sees the overshoot threshold...

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How many hospitals will be closed, how many schoolkids will go without books, how many civil servants will be fired and how many winter fuel payments will be cut to pay for this?

Oh yeah, none. They'll just print the money.

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In the preamble Peston says Darling knows he can't buck the trend of falling prices but is worried about it overshooting (down) and wants "in a sense" to try and minimise the damage

Chancellor Brown wasn't at all concerned about the overshoot on the way up so why is he (via his puppet chancellor) now so worried about it on the way down? And why does he think vast amounts of tax payers money should be used to try to prop up the collapsing value of an asset class which has featured in one of the biggest bubbles in history?

Anyway, it's all pie in the sky to make it look like they're doing something. Nothing's going to stop this baby now :lol:

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Chancellor Brown wasn't at all concerned about the overshoot on the way up so why is he (via his puppet chancellor) now so worried about it on the way down? And why does he think vast amounts of tax payers money should be used to try to prop up the collapsing value of an asset class which has featured in one of the biggest bubbles in history?

Anyway, it's all pie in the sky to make it look like they're doing something. Nothing's going to stop this baby now :lol:

Agreed. The governments ability to think of dumbass schemes is all well and good, but their ability to actually fund any of them is going to seriously deteriorate over the next 6 months. The USA have already got themselves into record deficit levels and we will be setting some of our our records very soon :o .

Nice to see that this scheme is just another way to punish the truly prudent who saved and didn't get involved in this ridiculous property bubble.

AFP

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http://news.bbc.co.uk/1/hi/business/7530273.stm

Lets hope the Tax Payer Alliance put this idea to bed! :angry:

Ok so the government bails out the lenders who then go back to lending silly money at the taxpayers expense. As a taxpayer, my response is to go out and borrow as much as I can to buy the house I want with no intention of ever paying it back. I would borrow as much as I could get away with and pay off as little each month as I was able to convince the lender I could afford. That way, I would be getting some of my taxes back. I know it would perpetuate a $hit society but don't get mad get even.

Edited by campervanman

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THIS IS 100% WRONG !!!

WRITE TO YOUR MP AND STOP THIS MADNESS NOW !!!!

BROWN HAS GOT TO GO. RUNNING THE COUNTRY DOESNT MEAN DOING WHAT YOU LIKE JUST TO TRY TO GET BACK INTO POWER> THESE PEOPLE ARE DESTROYING THIS PLACE JUST FOR THEIR OWN POWER LUST/GREED.

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Interesting that Peston's take on the Crosby report is different from that of the FT:

No quick fix for UK home loan crisis

There is no quick fix for Britain’s mortgage crisis and the long-term funding of mortgages should be left to the market, a report to Alistair Darling will conclude on Tuesday.

The interim report from Sir James Crosby, the former HBOS chairman asked by the Treasury to lead a review into improving wholesale mortgage financing in April, is likely to receive a cool response from lenders who have been lobbying the government for rapid action to break the logjam in the mortgage market.

The Crosby report will also say that Britain should avoid US-style government-backed agencies to tackle the funding crisis.

Sir James will leave open the possibility of more limited and temporary government support to mortgage providers in his final report in the autumn, with the aim of increasing the availability of credit and reducing its cost.

But in deciding that no suitable quick solution exists and that a permanent agency to underwrite mortgages from banks and building societies is undesirable, Sir James will implicitly accept that difficulties in mortgage funding will continue for some months.

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I've been convinced all along that eventually the credit crunch will pass, and that the taxpayer will be footing the bill...

Come on, the middleclass taxpayer is the easy target. (Bit like motorists etc) Who ever believed anyone else would foot the bill?

The "middleclass taxpayer" has already taken an irrationally long view of the instrument itself (have heavily borrowed against property) and between rising tax rake, broad inflation, and rising interest rates is simply unable to assist further.

Once the press office's thinktank gets around to asking the Treasury to run the numbers on this newly hare-brained scheme, they too will realise that the nation has no savings left to tap - that recession, and sector-specific deleveraging are inevitable.

Edited by ParticleMan

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The recommendation is part of a report commissioned by the Treasury ...

The report expects the shortage of mortgage finance to persist till at least the end of 2010.

So w/o the taxpayer the report predicts a drought for the next 2.5 years, and this cruch has already persisted for 12 months.

Conclusion : securitisation and all its clever wheezes led to 3.5 years of overspend-boom (at least). And yet:

[sir James] believes it may be necessary ... to re-stimulate demand for these securities.

... in view of the government's objectives of supporting financial stability ...

Anyone for a hair-of-the-dog?

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THIS IS 100% WRONG !!!

WRITE TO YOUR MP AND STOP THIS MADNESS NOW !!!!

BROWN HAS GOT TO GO. RUNNING THE COUNTRY DOESNT MEAN DOING WHAT YOU LIKE JUST TO TRY TO GET BACK INTO POWER> THESE PEOPLE ARE DESTROYING THIS PLACE JUST FOR THEIR OWN POWER LUST/GREED.

I wrote to mine yesterday, using www.writetothem.com, which another poster brought to my attention on different thread. Don't know if it will make any difference, but I at least feel less frustrated about watching this all unfold without protesting.

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I wrote to mine yesterday, using www.writetothem.com, which another poster brought to my attention on different thread. Don't know if it will make any difference, but I at least feel less frustrated about watching this all unfold without protesting.

It's the breaking news on Sky - but................................

Nothing will happen. This is classic Brown - he promises and then does nothing - he is vote catching - where would the money come from? Taxpayers are the ones who are feeling the pain at the moment - there would be an uprising (hopefully) if this went forward!!! :o

I too will write to my local MP.

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I would also suggest that as many HPC'ers as possible write letters, against the bail-out, to 'Letters to the Editor' pages of national and local newspapers. For high visibility this would need to include the red tops and be written in a suitable style accordingly (but not in a patronising way!). The political parties do monitor the national newspapers letters as one small measure of trying to keep tabs on public opinion - so this effort would not be a waste of time.

Writing directly to MP's, of course, is worth while.

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What this situation, the bust, the credit crunch whatever you want to call it has done is put a spotlight

on how the system works normally. All money, wealth, taxes end up going to the capitalists already.

So there is no point people getting upset about taxpayers money bailing out the banks, like its something new, it isn't, its business as normal.

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I agree with the majority view stated here that it's a bad idea. But would it really prevent house prices falling? I'm not so sure.

An implicit government guarantee for Freddie Mac and Fannie Mae didn't stop a crash in the US. Plus any government guarantee scheme here would insist on high lending standards, so it's a not going to be a backdoor route to liar loans and 125% mortgages. Indeed assuming higher lending standards begs the question, what would actually change? If you have a decent deposit, aren't looking for a crazy earnings multiple, and have a good credit record, then it's not too difficult to get a mortgage even today. What's driving house prices down is,

1. the expectation that house prices will be even lower tomorrow

2. there's no more irresponsible lending

Government guarantees may not much affect either of those two fundamental dynamics.

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It's the breaking news on Sky - but................................

Nothing will happen. This is classic Brown - he promises and then does nothing - he is vote catching - where would the money come from? Taxpayers are the ones who are feeling the pain at the moment - there would be an uprising (hopefully) if this went forward!!! :o

I too will write to my local MP.

Actually I am not at all convinced the govt doing this would be a bad idea... if they view the options as do nothing and sink into a massively damaging long term recession vs doing something , running the risk of extra inflation but also potentially shortcircuiting some of the pain... then they may well take the view and perhaps rightly that they should do something rather than be seen to sit on their hands... whatever the impacts on house prices (and I think the correction will still happen regardless) if their is something the govt can do to try and avert or lessen recession or indeed depression then I do think they should try.

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I became angry listening to all this on 5 live while driving around in my white van. Very little argument against it on the radio. Mostly VI agreement that the Government should do something. Also, the usual undercurrent that House prices falling is a bad thing.

I used to laugh at some people on here saying the Beeb were complicit with Brown in keeping HPI going. Now, I can see their point.

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Actually I am not at all convinced the govt doing this would be a bad idea... if they view the options as do nothing and sink into a massively damaging long term recession vs doing something , running the risk of extra inflation but also potentially shortcircuiting some of the pain... then they may well take the view and perhaps rightly that they should do something rather than be seen to sit on their hands... whatever the impacts on house prices (and I think the correction will still happen regardless) if their is something the govt can do to try and avert or lessen recession or indeed depression then I do think they should try.

Can someone who knows what they are talking about write a concise, sober form letter please? (no mentions of gold, the illuminati, "GordENRON Clown", how money doesn't really exist, "ZanuLabour" etc.)

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  • 399 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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