Friday, Mar 20, 2015

More Government-subsidised Ponzinomics

Guardian: Britain’s obsession with ownership has turned housing into a pyramid scheme

But what if all we’re really doing – by accepting crazed property prices as the norm, to be alleviated only by the fiscal equivalent of chucking tenners into a crowd – is sucking first-time buyers into a sort of national Ponzi scheme? What if we’re luring them in at what would otherwise have been the peak, just to keep the boom rolling a little bit longer, and leaving them horribly exposed to negative equity if another crash comes?

Posted by debtserf @ 08:34 AM (6790 views)
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1. taffee said...

What's really astonishing is that central banks have recreated the same circumstances which
Caused the credit crunch x 10

Difference is they have done this by choice knowing the potential consequences


Friday, March 20, 2015 09:35AM Report Comment

2. debtserf said...


An imploding housing market doesn't exactly signal wider economic confidence, so it is necessary to pull out all the stops when simply talking it up no longer works. The Tories simply view these subsidies and schemes as an Opportunity Cost worth paying for bragging rights on a 'robust' recovery.

Friday, March 20, 2015 10:39AM Report Comment

3. mombers said...

Good thing a million people, mainly renters, have been disenfranchised by the change in voter registration! So long as renters can be removed from the voting roll at the same speed as their numbers grow, Westminster can continue ignoring them and pander to the homeownerists

Friday, March 20, 2015 10:47AM Report Comment

4. taffee said...

Yes but it's inevitable that at some point it all falls apart...previously governments fretted about keeping a balance
And juggled the balls...but these policies are end game spending on your credit cards to live the some point it just stops...traditionally avoided at all costs

So now we are hurtling towards some sort of event which is likely to be nasty...Why bother...?

Friday, March 20, 2015 10:53AM Report Comment

5. debtserf said...

".at some point it just stops...traditionally avoided at all costs"

Welcome to the new paradigm! In this brave new world the government simply bails out debtors, and represses savers. Ergo, continued economic (debt) growth.

Friday, March 20, 2015 11:05AM Report Comment

6. jack c said...

There is still scope to cut interest rates (LOL) and today's drop in the value of Sterling partly reflects this. You really could not make this stuff up.

Friday, March 20, 2015 11:42AM Report Comment

7. Pig said...

Taffee - what is incredible is not the banks but the government.

They were elected on the mostly false pretext that the credit crunch was the previous governments fault, but then actively start introducing the measures that will lead to the next.

Friday, March 20, 2015 12:23PM Report Comment

8. taffee said...

Totally agree...Tories first budget was supposed to be emergency measure to cut the austerity
Budget...however spending has increased every year leading to 1.5 trillion of debt and still huge deficit
Around £80 billion

But if you read the papers and listen to spin we are booming???I don't get it

Friday, March 20, 2015 05:11PM Report Comment

9. Gorkov said...

Proof that you should believe some conspiracy theories. Its all part of a big plan for the future, governments change like group of actors on a stage, the real policy makers stay in the shadows. This is what Chomsky discovered about US foreign policy in the 60's and 70's, presidents changed but the direction of foreign policy remained the same. Conclusion, someone other than the elected party makes the policies, and they don't change.
I personally think the aim here is to a) enslave and control people with debt, b) crash currencies on purpose at some future date to re-distribute wealth (upwards obviously) and establish a new global currency.
Seems that we achieved too much personal/financial freedom from the post WW2 years to the 1990's, that's not good, so now those personal freedoms have to be taken away for the purpose of maintaining control.

Friday, March 20, 2015 08:56PM Report Comment

10. clockslinger said...

Tafee @ 1, is that a rhetorical question? Why? Because the worst potential consequence for you, as a parasite (bank), is that your political hirelings will pass any loss along to the taxpayer (host) and you the banker are made whole.... in perpetuity. In fact it gets better, you also get real assets for those ghost electronic digits called the "loan". Magic beans into real resources like water, forests and land.
Greece shows how it is done. Unpayable debt? Of course not! Your agents at the ECB extend and pretend with eurotaxpayer finance, digging slave population in ever deeper, keeping interest payments on that debt flowing to "the institutions", keeping you, the bank, whole and the magic bean conversion can be extended further elsewhere. Populations crushed? F**k them. There is no such thing as society anyway.
So what, exactly, is there NOT to like in that if you're that lender? Rinse and repeat (x10) please, and big bonuses all round.
Fu*k you, proles! Throw yourselves into the road!

Sunday, March 22, 2015 06:56PM Report Comment

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