Housing Minister Warns FSA Not To Derail Recovery

LisbonLaura

However, it would be a mistake to “bolt the door” when the housing correction had already taken place.

“I don’t want to snuff out innovation in the mortgage market.”

the FSA was unleashing a “reign of fear on mortgages”

ROFL Thxs Hamish, absolutely hilarious! Happy New Year to you

the_flying_pig

whilst this thread isn't particularly better or worse than one of H's usual efforts I will pick him up on his thread title, "Housing Minister Warns FSA Not To Derail Recovery"

i object to this because:

(1) as far as i can see no word such as "recovery" is used in the article. H's thread title strongly implies otherwise;
(2) any implication that house prices were 'recovering' would be misleading since they're falling and widely expected to go on falling;
(3) even more misleading would be any implication that inflation could somehow generate sustainable economic growth.

LisbonLaura

the_flying_pig wrote: »

whilst this thread isn't particularly better or worse than one of H's usual efforts I will pick him up on his thread title, "Housing Minister Warns FSA Not To Derail Recovery"

i object to this because:

(1) as far as i can see no word such as "recovery" is used in the article. H's thread title strongly implies otherwise;

I had thought we might all club together & buy Hamish a morality for Xmas, but I could not work out how we were going to nail it in without terminating the host; & that would be a shame, wouldn't it? --

-- I said, wouldn't it?

Batchy

the_flying_pig wrote: »

whilst this thread isn't particularly better or worse than one of H's usual efforts I will pick him up on his thread title, "Housing Minister Warns FSA Not To Derail Recovery"

i object to this because:

(1) as far as i can see no word such as "recovery" is used in the article. H's thread title strongly implies otherwise;
(2) any implication that house prices were 'recovering' would be misleading since they're falling and widely expected to go on falling;
(3) even more misleading would be any implication that inflation could somehow generate sustainable economic growth.

1) we are out of recession.
2) LR latest release shows annual HPI at about 2+
3) Inflation is topic of the day, who knows where it will lead too

markharding557

A._Badger wrote: »

Wrong. It is the above plus the failure of the FSA (in other words the previous shower of a government) to properly regulate the market.

You're right actually i didn't think about the then government

des_cartes

HAMISH_MCTAVISH wrote: »

It seems the Tory housing minister has had a bit of an epiphany lately...

http://www.ft.com/cms/s/0/385e08c0-1464-11e0-8d8f-00144feabdc0.html#axzz19hJ86ziW

Excellent news.

And bears, it seems that light you saw at the end of the tunnel when the Tories were elected, was just another train coming.;)

The market is doing a fine job of ensuring that the vulnerable can no longer borrow more than they can afford. No need for regulation at present. Market forces will ensure lending is compatable with affordability now that Ponzi Brown and his chums are no more.

macaque_2

des_cartes wrote: »

The market is doing a fine job of ensuring that the vulnerable can no longer borrow more than they can afford. No need for regulation at present. Market forces will ensure lending is compatable with affordability now that Ponzi Brown and his chums are no more.

Good post, I agree.

I must admit that when I saw this; "irresponsible mortgage lending must not be drawn so tight" I read this as: 'Tory Housing Minister encourages 'moderate levels of irresponsible mortgage lending'.

Crazy as it is, that is how large vested interests operate. The pharmaceutical industry fought tooth and nail against research into antibiotic treatment for stomach ulcers. It took the Australians (with no native pharmaceutical industry) to prove that many people could throw away their daily ulcer pills at (£10 a pop) for one course of antibiotics. We all know that the UK would be a happier and richer country if house prices dropped by 80%. There are so many spivs and speculators hanging onto the property gravy however, that governments of all colours are prepared beggar the economy for narrow interests.

the_flying_pig

Batchy wrote: »

1) we are out of recession.
2) LR latest release shows annual HPI at about 2+
3) Inflation is topic of the day, who knows where it will lead too

whoooooosh.

the_risen_christ

HAMISH_MCTAVISH wrote: »

It seems the Tory housing minister has had a bit of an epiphany lately...

"I think the answer is house-price stability. We had this crazy period from 1997 to 2007 when house prices almost tripled, which is fine if you have a house." For others, the boom meant their aspirations to own faded away, he added.

Shapps gave the example of a "rational" market, where property prices rose by 2%, while earnings increased by 4% – meaning a real-terms drop over time.

Oops. Looks like you mis-read that one Hamish.

HAMISH_MCTAVISH

the_risen_christ wrote: »

Oops. Looks like you mis-read that one Hamish.

Not at all.

It's clear the government have no desire to see house prices fall, but don't mind if they rise less than wages for a while.

Thats just fine with me, as it means both my house and wages increase in value compared to my mortgage.

It's of no use at all for those wanting a crash though.