government bailing out house losers - good or bad?

mean_momma

Last week I bashed out an irate email to You & Yours, Radio 4, in response to a broadcast about how the government should bail out those who had got into debt due to house price inflation, courtesy of the taxpayer. To my surprise, it was read out on air almost as soon as I'd finished typing it. This was immediately followed by a sob story from a single mother, but the next few emails were also disapproving. A left wing friend commented that R 4 obviously decided to air the views of the Rabid Right! Sorry, I thought that it was just old fashioned common sense not to borrow more than you could afford to pay back, nor to expect reward for failure (whatever the sad circumstances).


Yesterday, I was surprised to hear a part of my email being read out for a second time, along with a selection of others, all negative. This was followed by a professor, going on about 'schadenfreude' and the 'self righteous'. R4 are now urging listeners to send in their views.

So if you have strong views, visit the You & Your website and get commenting!

wymondham

I agree with you, the tax payer should not routinely take the tab for the financial decisions of individuals. There will always be cases that are contentious, but this Government seems too happy to spend what it does not have, in effect behaving exactly the same way as the people it is trying to help - not really a good example?!

withabix

They shouldn't be wasting our money bailing people out.

It's also too easy to go bankrupt in this country - the easy way out if you spend too much money these days.

lynzpower

the problem is that so many of the people losing thier houses are not always those who "overborrowed" they are normal people who are losing thier jobs as small businesses can no longer operate due to inability to raise capital.

wymondham

lynzpower wrote: »

the problem is that so many of the people losing thier houses are not always those who "overborrowed" they are normal people who are losing thier jobs as small businesses can no longer operate due to inability to raise capital.

Very true ... but how far does/should the state go on this?

mean_momma

wymondham wrote: »

Very true ... but how far does/should the state go on this?

If the state decides that the taxpayer should help 'hard pressed families' to keep their nice modest little homes, I can see loads of greedy speculaters gleefully lumped in under the same umbrella.......

It is indeed unfortunate for those who may have lost their job, or become ill, but house prices always could go down as well as up, surprise surprise....

I wonder what percentage of the last wave of buyers in trouble are truly hard luck cases, what percentage just took a silly gamble and what percentage borrowed on the value of their house to blow the cash on something else?

baby_boomer

In any government help plan the devil would be in the detail.

At the very least I'd expect the government to make a modest profit, even if house prices dropped another 15-20%%, by taking a significant part of the equity - with the option for the homeowner to buy that back later if their circumstances improve.

But if they came up with such a scheme there would be unjustified howls of protest on R4 - "Government robs homeowners" -, even though the homeowner and his family were being saved from eviction.

And the press would say that the government expected house prices to fall another 20% - so adding to the downward spiral!

moanymoany

With you 100% mean momma. There are adequate provisions for people with families under our benefit system. It makes me SO angry when people who have lived beyond their means EXPECT the 'anonymous' Government funds to be available to ease their path.

Their path to consumerism has been only too easy and the welcome from the real world is not going to be a particularly warm one!

I know that there are those who didn't live the celebrity lifestyle, but they still took on commitments they couldn't afford.

RESPONSIBILITY is a word that is going to have to come back into vogue.

nearlyrich

Hang on a minute people, if you have no aspiration to better yourself in life you can always start off on Housing benefit in a rented place and keep in a low paid job or benefits all your life, the government will be contributing. Some of these people will have been earning a lot and paying tax and NI accordingly. When the axe falls ex high earners( or any home owner) don't get any help with mortgages for 9 months and most people spend most if not all of what they earn. If there was a better system that say helped for the first 6 months to give people time to get another job or start the sales process if they truly can't afford their home it would make more sense. Personally I work, earn a decent salary and save because my family are all grown up and I am no longer living from pay packet to pay packet, being a little older my mortgage has been repaid. I don't want to see "hard working families" out on the streets because they lost an income and I would rather my tax went towards helping those who help themselves. It's very easy to be on a high horse and condemn people's choices in life but there but for the grace of god go many of us.

mean_momma

nearlyrich wrote: »

If there was a better system that say helped for the first 6 months to give people time to get another job or start the sales process if they truly can't afford their home it would make more sense......


I don't want to see "hard working families" out on the streets of.

First point, agreed.

Second point: hard working families out on the streets? Does that represent the bulk of the debtors?

nearlyrich

mean_momma wrote: »

Second point: hard working families out on the streets? Does that represent the bulk of the debtors?

Maybe not but just as people who don't have any intention of working get the same benefits and support as those who have temporarily fallen on hard times, everyone who needs help should get it for a LIMITED time, that would sort out the really needy from the people who are taking the proverbial in my opinion.