If The Boe Start To Finance Mortgages

[Prof]

Have a look at the average backbenchers pay, just to give you an idea of why 66k was pulled out of the air.

http://www.guardian.co.uk/politics/2008/ju...houseofcommons1

So allowing for a below inflation pay rises, the magical 66k ceiling should be going up in about four or five years.

IMO it should be lowered to a point just above the national average wage.

You`d get my vote.

[Guest eight]

Sadly, I suspect that many rural African families suffer from natural population control - too many children and possibly not enough food to feed them. Meanwhile, here in the UK, more children = more benefits. Our government will not allow children to starve, if they can help it. I agree that an African`s carbon footprint will be much smaller that someone living in the Western world, all the more reason why we should be thinking about population growth (not to mention that we have the means to do something about it).

My wife is actually the main earner in our family. We are taking something like a £4K hit while she has 9 months off - not that I'm complaining, that's just the way it is. But if she were on benefits her income would of course go UP as a result of the baby, not down.

To the OP who was complaing about the level of general taxation, I add this as a comment only. There were four women in the other half's maternity ward. Two were Polish, the third Spanish, leaving Mrs. Eight as the sole representative of good old blighty. The Polish ladies both required the services of a hospital supplied interpreter. Make of that what you will.

eight

[Guest An Bearin Bui]

This interim report they talked about yesterday has apparently ruled out government intervention in the housing market, on the grounds that it risks reinflating the bubble and because the government can't afford it anyway. That doesn't mean that they won't try, but IMO it makes it a bit less likely.

It certainly did rule out intervention - all that Crosby recommended in his report was a review of the mortgage-backed securities market and an examination of whether an intervention by the BoE to back this market could be worthwhile. He said that he would review the possibility of this over the next 3 months but added the caveat that it is just as likely that he will recommend the government to do absolutely nothing at all on this.

There was NO recommendation for the government to back mortgage like the US Fannie Mae/Freddie Mac - in fact Crosby rejected this idea out of hand.

Text of Crosby's Letter to the Chancellor

What I'd like to know is: why are the BBC spinning it to seem as though government intervention was recommended? Almost all reputable broadsheets reported the Crosby findings quite accurately. Only the BBC warped the report results to seem as though it was a call for government intervention.

Yet again the BBC reaches a new low in bad journalism and Communist-style information control...

[wonderpup]

We are also

considering whether other types of action by the authorities, including the possibility of the

Government guaranteeing (on commercial terms) the principal and interest on high-grade

tranches of new issues of mortgage-backed securities, may still be necessary,

This is what will be recommended- this is what the Banks want- this is what the Banks will get. Crosby is obliged to present himself as a neutral observer, but the reality is he is a VI- the guy ran a Bank. He will pretend to sit on the fence a bit, then come down in favour of giving money to the banks.

IMO this whole excercise is about finding a way to prop up the banks while presenting it as a way to save house prices.

[crash2006]

The British government cant afford a bust, and need to contain or create another boom. i found out that the UK government is scared, thats right scared if there's a recession.

Welfare costs would rise, and the government requires financing to support the predicted rise in costs, hence the new regulations on welfare system. The whole system is in a very bad way, the labour party have lowered your living standards, to pay for high employment.

No matter were you look be it education, NHS etc.. it has all been fuelled by debt, name one section that hasn't been fuelled by debt? can anyone answer this, no because each section has been fueled by debt or hidden from your eyes. Over the pass few years British assets have been sold off 40Billion of properties last year? do they have the right to sell properties that belong to every and each one off you no. The word used "the British government is whoring our assets" this came out of a very respectable posh old man.

The labour government has been funded by the states assets, what would you call this.

Edited July 30, 2008 by crash2006

[Yorkshire Lad]

How can labour prop up an inflated market - it simply cannot work.

The housing market depends on bottom feeders in the housing market to kick off house price sales through the whole chain.

Unless banks are going to start lending again at stupid multiples, FTB people still arent gonna afford to get into the housing market.

I cant see it happening.

[Patfig]

Can you let us know why you are looking to come back from NZ to the UK?

Was NZ not as you hoped or imagined? Are there things about living in NZ that you do not like or things that you miss back here in the UK? I am keen to know the reasons why you are thinking of returning as NZ is a place I have on my list of possible 'escapes' from the UK in the next year or two.

You have been there for 4 years so you have had a good insight into the country - be grateful if you could share here.

Thanks,

TMT.

Hi Tulip,

NA|Z is great. I got made redundant in March and have a job offer in Sydney and a possible job in Cornwall. My field is very niche.

There is hardly and crime here in S Island and no traffic jams etc. It's not perfect but I reckon it's as good as it gets really. My wife is very keen to come back for family reasons.

We are however undecided. If you have kids then this is perfect place as they can be kids and spend a lot of time outdoors, as I did myself in the Uk when growing up.

I dont know if I can get PM's but if you want to message me please feel free.

[snowman]

Ok I do see your point a bit. However it was the OP's cry of "what have they ever done for me" which provoked me, I think that kind of attitude is the really big problem in this country.

As to the possible "bailing out", the plans are not to try and re-inflate the bubble that would be impossible. It's to try and stop the overshoot below trend, this might too be impossible but it's a laudable idea.

And by the way (like the northern rock bail out) I can only see this costing the tax payer money if things go wrong, if it works out as planned it will make money.

Although I lurk frequently, I am rarely sufficiently motivated to post. This thread, and particularly the above patronising toilet speak from Neitherland, has pricked me. It's not a question of "what have they ever done for me" - it's a question of "why are they shafting me in every imaginable way" and smiling all the time as if I should be grateful. I suspect the really really big problem in this country is people who think they know best when they know very little, like Neitherland.

If the Government intervene to prop-up the housing market, I will start a riot. What annoys me the most is the way that any such move is portrayed in the media (or spun by Labour) as a help for "struggling first time buyers", as if they are nursing broken-winged birds. Their true motivation, however, is to keep middle-aged home-owners happy by propping up house prices, not to help FTBs. All FTBs would prefer a crash than a mortgage rescue. All voters would too if they could see beyond the Daily Express headlines.

I am melting, so angry am I that they could even contemplate intervening. They are twits.

[ʎqɐqɹǝʞɐɥs]

Been waiting for about 2 years now for the housing price crash to happen and taken the abuse that went along with this controversial view. Now that it is all kicking off and it looks like one day i will be able to buy a house, it now looks like the govt are going to step in and mess about with the market. Basically scr&wing me over again.

At the moment i am paying

lots of tax, (income, VAT, Car Tax, Petrol Tax, Paying for Passports, Driving Licences, Council Tax, etc)

lots of national insurance (not sure why this isnt just added into tax)

and lots of student loan payments

I am also paying for

A Pension (since there is Hee Haw chance of me getting one from the govt)

and Private Health Care

after all this is deducted, i try to have a life and save up, as i can for a deposit

Now they are wanting ME to pay to support the market that is pricing me out!!!!

I know there are swear word restrictions on this site so you will have to think about this to work it out

F*** O**

in fact F*** Right O**

And also for any journalists on this site, i dont think it would be a disaster if the market overshoots on the way down, in fact i think it would be WONDERFUL.

If i am going to be kicked everytime i try to do well for myself i am going to stop trying in this country and go else where. When was the last time that ANY political party did anything to help someone like me. Young, Single, Educated and working.

I hear you bro.

[Ferret]

I hear you bro.

But do your fellow quacks hear you?

Edited July 31, 2008 by Ferret

[The Masked Tulip]

Hi Tulip,

NA|Z is great. I got made redundant in March and have a job offer in Sydney and a possible job in Cornwall. My field is very niche.

There is hardly and crime here in S Island and no traffic jams etc. It's not perfect but I reckon it's as good as it gets really. My wife is very keen to come back for family reasons.

We are however undecided. If you have kids then this is perfect place as they can be kids and spend a lot of time outdoors, as I did myself in the Uk when growing up.

I dont know if I can get PM's but if you want to message me please feel free.

Thanks. I will PM you.

[Guest eight]

the BIGGEST by FAR “benefit fraudsters” is government. You must cut wasteful government spending before you tackle the tiny tiny amount “used/wasted” by the inability of these polish women to speak English.

Sorry, I may have given you the wrong end of the stick there. The OP was asking why he never sees any benefit for his taxes. All I was saying was if he was a new mum on a maternity unit - especially one with extra needs over and above the norm - he would feel like he was getting a benefit. The point being that you actually have to make use of Government services to get any "value" out of your taxes. Of course ironically it's those who pay the most tax who are least likely to make use of the services provided.

eight

[patprimer74]

... ironically it's those who pay the most tax who are least likely to make use of the services provided.

Wrong. It's those who pay the most tax who are MOST likely to make use of the services provided.

School education - they're more likely to stay on until 18/19.

University education - they're more likely to go to uni. (despite student loans, courses are still massively subsidised by us poor taxpayers. )

Post graduate education - ditto. Very, very expensive.

Policing - due to their greater possession of valuables, protecting them costs immensly more than that of low tax payers.

Rail travel - 'The poor travel by bus, the middle class travel by car and the rich travel by train.' Heavily subsidised.

Car travel - See above. The poor use the expensive roads much less than the better off.

... and on, and on,

So, as I said, you're very wrong. Just uninformed, I suppose.

p

[Byron]

"So, as I said, you're very wrong. Just uninformed, I suppose."

Don't you just hate these smug know-alls?

Why be rude?

In any case, I fail to see how a single mother of umpteen children all brought up at public expense and who, herself never ever pays a penny in taxes, is not getting far more use of the system than the hard working taxpayer

[dancer7]

If the Treasury/BofE go down the road of trying to rescue the mortgage market won't the PSBR go through the roof (or is it the floor?). The consequences down the line could be pretty dire, e.g.the pound trashed, inflation, etc. Surely no government could be that mad...could it?