Wednesday, November 3, 2010
Another bright idea to prop up house prices.
'Buy up bad mortgages to help house prices Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=517531&in_page_id=2&expand=true#ixzz14CmmHoEj
The Bank of England should print money and buy 'bad' mortgages to boost house prices and prevent the UK entering a repeat of Japan's lost decade, according to a plan set out by a leading economic forecaster. Fathom Consulting today warns of the creation of 'zombie households' where families wallow in rock bottom rates by spending the benefit rather than paying down the debt. The reduction of household debt, now equivalent to 155% of annual income, is key to setting the UK on the path to sustained recovery, says Fathom.