Thursday, January 15, 2009
Help the ones in arrears will only freeze the market further
One average mortgage in arrears for an extended period could cost as much as 30 new mortgages. But if the held mortgage has a riskier, low loan-to-value this cost could increase to 80 new mortgages. So the more GB attemps to help those in arrears, the fewer FTB can entre market (with a multiplier of 30 to 80!) and further freeze the market! Great! Please bail out all 75,000 repossesions! That will stop 6 million new buyers!! Then HPC will be really spectacular!!