Tax Payer could prop up mortgage market

steadysaver

It is so frustrating that the government want to keep the hpi going. Clearly they are not raising enough money from stamp duty at present.

http://www.thisismoney.co.uk/news/article.html?in_article_id=447845&in_page_id=2&ct=5

lostinrates

This makes me livid. Perhaps they should apply it just to home owners....taxing those of us saving to help restart the market seems just **** (not often I star!) when people are already feeling th pressure of inflation (5p of pump prices is helpful but still not enough to save many I suspect) etc, taxes need to be directed towards provided social housing for those who'll need it, and benefits for the genuinely hardworking people being made unemployed aTM.

I woud seriousy be prepared to protest about this....anyone care to join me or must I [STRIKE]limp[/STRIKE] march and wave flags alone?

dudleyboy

lostinrates wrote: »

I woud seriousy be prepared to protest about this....anyone care to join me or must I [strike]limp[/strike] march and wave flags alone?

I'm with you, Losty! It's getting to the point now that if Labour point in one direction I'm automatically going to turn in the other.

I don't trust them, I don't trust their policies and I have lost all faith in their ability to govern and lead this country.

Of course, I've been feeling this way for a while so this "revelation" is nothing new... but it's funny how it's only when it actually hits people in the pocket that the majority begin to notice.

If more people had realised sooner we wouldn't be in the mess we are now.

richdeniro

If they're gonna go down this route why did they stop at nationalising Northern Rock.

Might as well just taken control of all the other mortgage lenders.

nickmason

Likewise this really annoys me.
I sometimes think that I was the stupid one, when I did the maths and deduced that economically something was broken and fit for a correction; I remember someone a few years ago pointing out that the government "won't let it happen - too many vested interests". Maybe the decision I should have made was indeed the macro-political, rather than macro-economic one, whereby I would recognise that the government would sell the country down the river on a pile of debt rather than let the economic cycle run its natural course; and in which light I would have joined the herd - bought a house, plasma, car, expensive holidays and then gone down the IVA route.
Which, on a personal, micro-economic level, it now seems, would have been the better bet.

PS - the final irony in all of this, was that I interviewed at Bear Stearns in 2002 for a risk analysis role. In the interview, when I admitted that I was looking to return to banking so that I might somehow afford a house, I remember the "Global Head of Risk Management" suggesting that then was definitely a very bad/risky time to buy a house. Clearly the herd knew better....

amcluesent

> I was the stupid one,<

One of the downsides of a democracy, the sheeple can vote to steal the assets of those demonised as 'hoarders'.

Of course NuLabour has been wilfully devious in bankrupting England, the off balance-sheet PFI wheezes, the hidden devaluation of the £ with the Crock, stealing future pension provisions, leaving us beholden to Russian thugs for gas and coal etc.

trudiha

The taxpayer could become responsible for billions of pounds of mortgages under radical proposals to restart the housing market.
The Government would offer to take the risk of newly-issued mortgages on to the books of the Bank of England and exchange them for short-term Government bonds.
The scheme, which is being considered by ministers, would provide the banks and building societies with the resources and confidence they need to increase lending.
If it adopts the idea, the Government is certain to be accused of 'rewarding failure' by once again bailing out the banking system from a mess of its own creation.
The plan is one of a number of ideas contained in an interim report by the former chief executive of the Halifax, Sir James Crosby, who has been asked to examine ideas to ease the credit crunch.

I only read the first few paragraphs as it stuck me as a pure speculative knicker twisting by the journalists.

slipthru

lostinrates wrote: »

I woud seriousy be prepared to protest about this....anyone care to join me or must I [strike]limp[/strike] march and wave flags alone?

I'll join you too.

BTLNEWbie_3

lostinrates wrote: »

I woud seriousy be prepared to protest about this....anyone care to join me or must I [strike]limp[/strike] march and wave flags alone?

I think it is a very good idea.:T

Gorgeous_George

They (HMG) can issue bonds if they wish. As the DAILY MAIL atricle says, these would be short term bonds. Hardly likely top cover the lender for 25 years.

Prices are - and always have been - driven by FTBers. If FTBers were not prepared (or able) to commit to spend more than 3 x income, prices would crash. If tenants were not prepared to pay high rents, BTL LLs would not exist (at least, not in the numbers that we have).

Blame the Government if you wish but high prices were a result of low inflation, low interest rates and stability - hardly the greatest crimes that a Government has ever committed.

GG

WTF?_2

Gorgeous_George wrote: »

Blame the Government if you wish but high prices were a result of low inflation, low interest rates and stability - hardly the greatest crimes that a Government has ever committed.
GG

Inflation hasn't been low for a good few years now - house prices inflated to stupid levels but of course the dumb public and mass media mostly thought that was a good idea.

Low interest rates: Well any fool can make interest rates low. Especially when the inflation is going into housing and cheap imports are keeping the prices of everything else down. The trick is to raise them at the right time to prevent the sort of disaster that is now unfolding. Something at which the govt/BoE have failed miserably at.

Stability? Yes, things tend to look nice and stable when your economy seems to be booming. Even if that boom is based on unsustainable borrowing. Again, the trick is to keep that stability once the credit party is over. Something at which the government has spectacularly failed - have to laugh at reports that the Treasury has already warned that cash is so tight that cuts in funding are on the way. We haven't even seen the real effects of a recession and are coming off the end of an almost decade-long boom - and they are already out of cash. Pathetic.