Sunday, December 9, 2007

Capitalists beg for socialist style state intervention to fix their latest failure.

UK owners may be forced to sell homes

Michael Coogan, director-general, urged the government to pledge more money to help those in danger of falling off the housing ladder. UK 'teaser freezers' on the way?

Posted by tick tock @ 11:18 AM (2088 views)
Please complete the required fields.



17 thoughts on “Capitalists beg for socialist style state intervention to fix their latest failure.

  • little professor says:

    Yep, capitalism is all very good while the rich are getting richer, but as soon as there is a hint of them losing money, they go straight to the government with their hand out.

    Reply
    Please complete the required fields.



  • well,the problem is also that if you have a poor credit history,you cannot rent!won’t stop prices falling though…uk prices are grossley overvalued
    and the next generation cannot get on the ladder which is starting to cause social unrest.

    why should we bail out greedy liars anyway

    Reply
    Please complete the required fields.



  • japanese uncle says:

    Playing capitalists in good times, and begging help from the Big Socialists Mum in bad times.

    Then it would be better to socialize everything from the begining, and ban illegal profit from selling CDOs and other toxic transactions including property speculation particularly the BTL. At least BoE, healthcare and education should be re-nationalized. Otherwise:

    ————————————
    911 Caller: “This is an emergency! Please send an ambulance immediately. A man was run over by a car!”

    Receptionist: “Is the bloke run over related to you?”

    911 Caller: “No, I am just a passer-by”

    Receptionist: “Does the bloke have a wallet or something worth value?”

    911 Caller “C’mon! He is dying, what the heck are you talking about?”

    Receptionist: “Sorry mate, but after the privatizaton, we’ve gotta production budget. We need revenue, otherwise my job will be gone. You know sending ambulance costs 500 quids each time”

    911 Caller: “I don’t fuXXXing believe it. OK, I can’t allow a person to die for money. I pay the cost.”

    Receptionist: “Have you got cash?”

    911 Caller: “No. But I have Amex Gold Card.”

    Receptionist: “C’mon, Sir.. Why din’t you tell me so in the first place, gov. We are providing Golden Premium Service for the holders of Amex Gold Card and Diners Club Card. So I can guarantee an ambulance arriving in less than five minutes, as a value-addded service for our valued customers, Sir. Thank you very much for your patronage, this time. Have a nice evening Sir.”

    Reply
    Please complete the required fields.



  • Why should the taxpayer pay if the borrower can’t pay back after all. AFAIC the borrower has received poor advice to borrow – and should be supported via legal aid to sue his “adviser”. Slightly different view of it – but people shoudl be looking at WHO has caused the problem. Not helping finance the victim. Remember the pensions misselling?….. we’ve had mortgage misselling

    Reply
    Please complete the required fields.



  • Should I get my self a big loan against my (paid for) house to get a handout?

    Reply
    Please complete the required fields.



  • Growler, I remember Pensions, another UK scandal that has been swept under the carpet by NeuLiebor.

    I am waiting for someone to move the rug on this one, but yet again no big guns are sticking their weapons over the parapets yet!

    Reply
    Please complete the required fields.



  • just heard that lenders are putting a stop to interest only mortgages….from someone who is wanting a mortgage…any links on this anyone
    if we are currently 9.5 x annual income based on interest only,we must be 11 x based on repayment so even a 50% fall puts us above the historical average of 3.5!

    Reply
    Please complete the required fields.



  • New User 2007 says:

    The good thing about all this is that the VIs are clearly breaking ranks. Before everything is great and houses will always go up was the mantra. Now they are adopting different strategies.

    The mainstream ones are asking for help and cuts because we are all doomed. While the BLT mortgage specialists are trying to talk up rents…Stuart Law has even called the CML’s forecasts as being ridiculous.

    Underlying all this is the impolicit acceptance that it was all liquidity driven…if it was not i.e. “it is driven by fundamentals”, then whey are they saying we are doomed without an interest rate cut!?

    Reply
    Please complete the required fields.



  • who stole my pension? says:

    The pension issue will re-surface soon. Darling and Gordon have run out of money and raising taxes will be difficult. So they will yet again rob the pension funds. The last robbery cost 100 billion quid and is still costing 5billion per year however, this new robbery will cost much more! Forget Robert Maxwell the big pension robber is Gordon. Starlin Gordon will not be happy until he has destroyed all our pensions.

    I would vote for any party that said it was going to cancel all the members of parliments gold plated indexed linked pensions and put them on a money purchase pension scheme. They would also have to limit the MP’s expenses otherwise they will just claim their pension contributions on expenses! Until MP’s only have money purchase pension schemes, with limited expenses, they will never behave in a responsible fashion!

    Reply
    Please complete the required fields.



  • I agree with the above comments.

    This privatisation of ‘upside’ rewards and socialisation of ‘downside’ risk would be wholly unacceptable in any decent society.

    Those who have abstained from the madness of this bubble are now being asked to stump up tax to keep it afloat, in order to prevent the Banks having to sell into the falling market that they have created.

    As JU says, if social funds are constantly required in order to bail out markets, why not just Nationalise them? If ‘investors’ do not want to fund the downside, why allow them to hoover out all the profits of the upside in the first place? Why not socialise the profits for everyones benefit too?

    If land was collectively owned, and rents collected by the State on our behalf, this income could replace income tax.

    We would be done with speculatively driven boom and bust economics altogether.

    Reply
    Please complete the required fields.



  • To quote from the article:

    The Council of Mortgage Lenders urged the government to help customers facing arrears by addressing shortfalls in state support for mortgage borrowers in difficulty.

    Borrowers on some benefits get government help for mortgage interest. But the CML said eligibility for support was too tight and homeowners who have difficulties received less support than tenants.

    The Treasury said: “The government is in discussion with the industry about homeowners facing financial difficulties and to identify ways in which lenders may provide support for those experiencing difficulties.”

    If you’re unemployed and renting, you can normally claim housing benefit with which to pay the rent (unless you have savings, in which case you’re expected to pay the rent out of your hard-earned savings instead). If you’re unemployed and a homeowner, you can’t claim anything for 39 weeks, after which you can claim income support to cover the interest-only portion of the mortgage, up to a maximum mortgage of £100,000. Whether renter or owner, if you have savings greater than £16,000, you get nothing. So basically the CML is pointing out what a lot of people will soon discover: the government won’t help you!

    Reply
    Please complete the required fields.



  • well spotted drewster. You’d have to be a financial advisor to know that, right?

    Reply
    Please complete the required fields.



  • I’ll take that as a compliment Paul, but no I’m not a financial advisor. I just found the information from various sources, including Shelter (the housing charity), the Department for Work and Pensions, and some local councils. I was interested in the degree to which existing state support could cushion the housing market. If I was a financial advisor, I would have pointed out that state handouts aren’t the only form of support for the unemployed….

    Mortgage-holders are often covered by private insurance – critical illness (CI) cover, income protection (IP), unemployment cover, or mortgage payment protection insurance (MPPI). Only 30% of homebuyers take up MPPI though (I can’t find figures for the other types of cover). The cost of MPPI varies according to the provider and the level of cover offered, but £4 per £100 covered is typical. That means if your mortgage costs £1000 a month then MPPI would cost an additional £40 a month, bringing the total payment to £1040 a month. That’s approximately equivalent to a 0.25% increase in the interest rate (e.g. from 6% to 6.25%).

    Apparently a lot of people drop their MPPI cover after a few years once they’ve built up equity in the house. The equity can be used as a safety net instead. Of course, in the event of price falls, that equity might not be there any more….

    Reply
    Please complete the required fields.



  • “So basically the CML is pointing out what a lot of people will soon discover: the government won’t help you!”

    and I hope the govt will not bail out these financially irresponsible individuals
    but since I think they will, I am changing my savings into euros

    Reply
    Please complete the required fields.



  • Another fantastic Government initiative on the way i.e. lets bail out and reward all those who have foolishly over committed themselves. This no doubt at the expense of those who have saved and acted responsibly.

    Reply
    Please complete the required fields.



  • it_is_going_with_a_bang says:

    Falling off the ladder??? What about anyone who can’t get on it? Oh thats right they don’t owe you money!
    So now not only do the banks expect to be bought out themselves when they get it wrong – they want to the government to pay the interest on the bad loans to the sheeple as well.
    What ever happened to considering the consequences before they lend the money!!!!!

    Reply
    Please complete the required fields.



  • “sell and become a tenant at the other extreme,” he said.

    Oh dear, we appear to have gone to the other extreme…

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>