Tax Payer could prop up mortgage market

BTLNEWbie_3

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

It is their fault, if you build your future on sand it will all come tumbling down.

Gorgeous_George

Sorry, I forgot.

We are a Nation of victims - nobody ever screws up. It is always somebody else's fault.

GG

dudleyboy

Gorgeous_George wrote: »

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).

That was my stance, GG. Now it looks like the nation's other FTBers are joining me... even if, for them, it isn't a matter of choice.

And at this point in time I continue to maintain that stance and will happily maintain it for several more years. Reductions in stamp duty, incentives, deals, promises, even Gordon Brown himself knocking on my front door and forcing me at gun point to agree with his "sound economic principles" wouldn't convince me buy for several years to come.

House prices are falling and no amount of [strike]communist manipulation[/strike] government intervention of our free market economy can, or should, prevent that.

And when the dust settles I'm going to party like it's 1999 (although I'll settle for 2002)! :money:

lostinrates

Gorgeous_George wrote: »

- nobody ever screws up. It is always somebody else's fault.

GG

Sometimes people screw up, it is their fault and they still manange to be in government!

To a degree I'm with you, I think a hell of a lot of people have been misguided and at fault. But why should I, saving for a home, have my taxes diverted to prop up their faults? Or my parent's who have paid off there mortgage and still have to deal in a reduction of other state services/funding to help people who were less prudent?

I know we can' choose to have our taxes spent where we want them, and I have a whole heap of gripes about some state expenditure, but accept that the elected government will do what the majority voted them to do but for the government to suggest people like me should, through our taxation, keep ourselves off the property adder by supporting those who WERE at fault/suffering genuinely seems a big step too far for me.

ultra10

Gorgeous_George wrote: »

Sorry, I forgot.

We are a Nation of victims - nobody ever screws up. It is always somebody else's fault.

GG

Crash Gordon has been Negligent to a large degree.. Making mistakes is one thing , but on such a colossal scale ... Him & his predecessor knew it was all going badly wrong last year ...hence TB giving way, letting GB take the blame,as he should, at least to some degree..or are you not aware how long GB has been the chancellor ?? thanks also his spending policy there is nothing in the financial cupboard... so lets heap the risk on the taxpayer..as usual.. perhaps your just another champagne Socialist,a bit upset how his party have cocked it all up so badly ? but to be fair he isnt as bad as Mr Lamont, I can just about remember what a disaster he was

WTF?_2

ultra10 wrote: »

Crash Gordon has been Negligent to a large degree.. Making mistakes is one thing , but on such a colossal scale ... Him & his predecessor knew it was all going badly wrong last year ...hence TB giving way, letting GB take the blame,as he should, at least to some degree..or are you not aware how long GB has been the chancellor ?? thanks also his spending policy there is nothing in the financial cupboard... so lets heap the risk on the taxpayer..as usual.. perhaps your just another champagne Socialist,a bit upset how his party have cocked it all up so badly ? but to be fair he isnt as bad as Mr Lamont, I can just about remember what a disaster he was

Lamont was hamstrung by ERM membership and thus having to shadow the DM.

Hence the shenanigans of 'Black Wednesday'' which did in the Tories reputation for sound economic management and particularly led to Lamont being vilified.

http://en.wikipedia.org/wiki/Black_Wednesday

Labour followed what just about all the 'Anglo' economies (and many Western European ones) were doing, as would the Tories have done .... but it's the massive public sector borrowing fiasco that's really the hallmark of their bad economic handling IMO. Just at the time when we most need to be able to spend public money and after an unprecedented period of strong tax returns and economic activity, the public purse is about as bad as it's ever been.

Kudos to Blair though - he walked at exactly the right time leaving Brown to carry all the blame. Plus Brown didn't even take his brief chance to call a snap election which he would surely have won.

mr.broderick

Where is generali?
I mentioned a couple of months back that something absolutely incredible was going to happen to the mortgage situation and this was it.
Heard whispers of this a while ago...Amazing stuff...

WTF?_2

mr.broderick wrote: »

Where is generali?
I mentioned a couple of months back that something absolutely incredible was going to happen to the mortgage situation and this was it.
Heard whispers of this a while ago...Amazing stuff...

If it did happen, it would mark sheer desperation. It would also trash the value of Sterling as government bonds would go from desirable AAA status to junk. Good luck borrowing the cash needed to pay for government spending and with such a heavy reliance on selling imported stuff to people, say hello to hyperinflation of prices in the shops.

If you do think this is going to happen, then buy gold now along with any (useful) material things you think you are going to need over the next few years.

This isn't good news for anyone, it's a sign of disaster ahead. We'd all better hope it's not true or it means we are really screwed.

mr.broderick

!!!!!!? wrote: »

If it did happen, it would mark sheer desperation. It would also trash the value of Sterling as government bonds would go from desirable AAA status to junk. Good luck borrowing the cash needed to pay for government spending and with such a heavy reliance on selling imported stuff to people, say hello to hyperinflation of prices in the shops.

If you do think this is going to happen, then buy gold now along with any (useful) material things you think you are going to need over the next few years.

This isn't good news for anyone, it's a sign of disaster ahead. We'd all better hope it's not true or it means we are really screwed.

Totally agree.

Paul_N_4

Haven't the US done this already? i.e. swapped the bank's dodgy stuff for government bonds?