Government plans 40bn sub-prime bailout - Mortgages to be nationalised?

WTF?_2

Just saw this, it's in the Mail but......

http://www.dailymail.co.uk/news/article-1050913/Cabinet-rift-widens-Darling-rages-Browns-40bn-State-mortgage-plan.html

Cabinet rift widens as Darling rages at Brown's £40bn State mortgage plan

A row over a £40billion plan for State-backed mortgages to tackle the housing crisis has fuelled the bitter feud between Gordon Brown and Chancellor Alistair Darling that threatens to wreck the Government’s economic relaunch.Mr Brown wants to go ahead with the scheme in a last-ditch attempt to boost his poll ratings and head off growing pressure on him to step down.
But he has run into fierce resistance from the Treasury and the Bank of England, who say it could be an expensive flop.
..
Mr Brown has been putting pressure on the Treasury to underwrite mortgages to help homeowners avoid defaulting on home loans.
He believes the scheme could transform the housing crisis, prevent families being thrown out of their homes, get the property market moving again and ease pressure on banks and building societies.
To finance it, the Government would issue 30-year gilts which would need to be refinanced every two or three years.




Can it be true - is this cretinous bunch considering directly taking some of Britain's dodgiest mortgages onto the public books and borrowing billions to do it?

The 'financial meltdown' lights are furiously blinking red right now. :eek:

pizzagirl

They're gambling with our money yet again, they wouldn't do it with their own money, that's for sure.

baby_boomer

Unfortunately the Media is so soft-left in this country that Brown might pull it off.

Mortgaging the country's finances - not an improvement in his poll ratings :rotfl:

And the Conservatives won't want to fight it too hard in case they seem callous when the government is trying "to do something to help" .

kje_2

If you look past Brown's self-interest in remaining as PM then there may be some method in his madness. Maybe, he's weighing up the cost of state intervention in the housing market against the cost of dealing with the wreckage of 10,000's of "hard-working families" ending up defaulting and finding themselves homeless. Who pays for that and at what cost to the taxpayer ?

We are up the creek without a paddle.

Dithering_Dad

What are the alternatives, have thousands of families go bankrupt, write off all the cash and have to house them at great expense in B&B's because there is a lack of council housing ?

Better to subsidise these people that to pay for them outright, surely?

baby_boomer

Who decides who should be subsidised and on what criteria?

It looks an ideal situation for organised crime to expoit.

And sends out the message - again - that thrift doesn't pay.

WTF?_2

While they're at it, why not encourage everyone to head down to the bookies with their life savings and compensate them when their horse doesn't come in :rolleyes:

Not with my money, Gordon.

dean_ham

Arent they helping families enough by giving them tax credits left right and centre and all the other benefits poor families get.

Makes me sick, ive worked hard in school and further education for the last 20 years, now im in a position and on a good wage im taxed £600-700 a month FROM MY WAGE ALONE!!!!!, i dont see none of this money. Yet a 35 year old guy in work with me earning £12,000 less than me a year.... is £3000 a year better off than me after tax per year because he got 4 kids...!?!?!?!

Anyone know any good emigration websites to get out of this s* hole

WTF?_2

baby_boomer wrote: »

Who decides who should be subsidised and on what criteria?

It looks an ideal situation for organised crime to expoit.

And sends out the message - again - that thrift doesn't pay.

Any time the government 'gives away' money, which is essentially what they are doing here, there is mass fraud.

Concerns about that aside, this isn't about bailing out unfortunate people - it's about rescuing the greedy and fiscally clueless from their poor financial decisions.

The mortgages to be underwritten will be the riskiest ones . It means massive exposure to the taxpayer and sends out a signal to people that they can borrow as stupidly as they want and the government will bail them out when it goes wrong.

Oh well, at least they're extending some of their largesse with public money to the (more stupid members of the) general population instead of confining it to their rich banker mates in the City.

Dithering_Dad

!!!!!!? wrote: »

While they're at it, why not encourage everyone to head down to the bookies with their life savings and compensate them when their horse doesn't come in :rolleyes:

Not with my money, Gordon.

Hardly the same thing, these are hardworking families who wanted stability for themselves and heir kids that is provided by having your own home. They didn't cause the credit crunch, they were just impacted heavily by it.

Again, I have to ask, what would you rather do, turn your back on these people and have them homeless and living in B&B's?

Dan:_4

!!!!!!? wrote: »

While they're at it, why not encourage everyone to head down to the bookies with their life savings and compensate them when their horse doesn't come in :rolleyes:

Not with my money, Gordon.

But it's not your money anymore, is it. So your out of luck.

Sounds like a good idea to me.