Wednesday, October 15, 2008

Govt. ‘desperate to prop up housing market’ – Official!

Mortgage Lending

Lend, lend, lend. To judge from the statement accompanying the UK government’s bail-out of British banks, that is the message Whitehall mandarins will be sending to mortgage lenders. The Treasury is insisting, as a condition of the UK recapitalisation plan, that banks receiving public funds maintain competitively-priced lending to homeowners and small businesses at 2007 levels for three years. Desperate to prop up the plunging housing market, the government is fearful that credit withdrawal by the banks will deepen the looming recession...

Posted by mark wadsworth @ 08:19 PM (1523 views)
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14 thoughts on “Govt. ‘desperate to prop up housing market’ – Official!

  • Clearly that doesn’t include the RBS one account!

    Those fookers raised rates 25bps when rates where cut 25bps and failed to pass on the 50bps rate cut = 1% higher than a when I took my offset. I will soon be leaving them.

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  • Berlin, 1945, Bunker: “We WILL not be defeated. I have the weapon in mind”.

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  • ……. and when we’ve spent all this we will get some more from ………………….. ?

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  • Hmmm – just enough time to get the next election out of the way. How convenient.

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  • Exactly what I’ve been saying – very dangerous person with an election coming up.

    So we, the British people are now in a situation where an unelected Prime Minister has just spent Billions of our hard earned over a long weekend.

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  • I know there are people desperate to move and can’t cause the market is shut. The best that can happen to them is that prices come down as quickly as possible. Once house prices reflect income and affordability is restored, sales will happen again. Meddling with the bubble collapse will only prolong the period of adjustment and ultimately cause more problems than necessary.

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  • planning4acrash says:

    Just as Herbert Hoover prolonged the Great Depression with price controls that caused shortages and prolonged the inevitable adjustment, so shall this socialist government.

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  • except the scheme is not enforcable on the banks….

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  • During a war get the poor old public to buy war bonds, during a recession get them to borrow more. Trouble is in the latter the banks don’t want to play ball.

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  • The EAs in my bit of Essex have been pulling every string possible to get the 2 local Conservative MPs to agitate for a cut in IRs and for easy cash availability to punters.

    As for NuLabour – if they can get house priices going up and people spending again, they think they can win the next election.

    As I said on a post yesterday, one of the interviewers on BBC was continually extolling the virtues of housebuying “while prices are low”.

    A fix-up is coming, I think!!! People are desparately self interested.

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  • Prof John Muellbauer said at the Treasury Select Committee on housing yesterday that making a given level of mortgage lending a condition of receiving Gov bail-out “was like setting a target for water to run uphill”.

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  • With peoples wages not rising as fast as everyday bills and living expenses, rising unemployment and job security (especially in the city) who in their right mind is going to borrow money they cannot guarantee to repay other the the non-credit worthy who are either not financially aware or couldn’t care less! The wheels have fallen off the miracle economy and no matter how many carrots you dangle in-front of the donkey it cannot pull the blasted cart any further. Brown is a fraud and Blair is the Joker of the pack who took this country for a ride, they have had over 10-years to fix the cart and have failed this country big-style and we will all be left to carry the can. The right honourable members of government have gold plated pensions unlike the vast majority of the private sector in the UK who will be shafted out of theirs.

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  • charlie brooker says:

    As I noted in a thread on Tuesday the government have compunded this issue by replacing the boss of RBS with the boss of British Land.

    WTF does the boss of British Land know about banking? But you can be sure he knows an awful lot about property, that’s why he now running a major British bank.

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  • Brown is desperately trying to recreate the conditions that made the housing bubble possible (insanely loose credit standards, low interest rates etc.)
    The problem for Brown is that the factors driving house prices lower are increasing. It is no longer a only question of credit standards reverting to
    limits that are not likely to drive the bank into insolvency. The economy is collapsing, unemployment is soaring, those “sound fundamentals” that were
    supposed to have underpinned house prices have gone the way of the hoola hoop. And above all, buyers have woken up to the fact than maybe the
    belief that “house prices only rise” is mistaken.

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