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Oh, for f…

Cameron Launches State-Backed Mortgages Plan

Eh? Is he trying to out-crazy Millipede, or what?

The scheme was due to start in January but hours before the Conservative Party Conference opened, the Prime Minister revealed that NatWest, RBS and Halifax had all agreed to provide the new deals.

It is widely being seen as a response to Ed Miliband’s Labour conference crowd-pleasing announcement that the party would freeze energy prices for two years as conference season has shaped up as a “battle over the consumer”.

Ah. Yes. Yes, he is.

He denied that the move would create a housing bubble and said that they had taken advice from the Bank of England and empowered it to stop a bubble being created.

Well that’s all right then. I expect he’s borrowed Millipede’s magic wand.

My normal response to this kind of willful insanity in any other aspect of life would be to wash my hands of it and walk away. If the others involved are so determined to make a complete pig’s ear out of the thing then, as we say round these parts, “Hell mend you”. I’m out.

But that’s kind of tricky to do with governments. Especially when the major political parties are engaged in a hell-for-leather race to the bottom nuthouse.

12 Comments

  1. Lynne says:

    They are already in the nuthouse. Right now they are fighting over who gets to occupy the padded cell and who gets the electrotherapy.

  2. john in cheshire says:

    I wish I could remain alive long enough for sanity to return to our country and normal, proper historians will have given thought to what has been happening over the past half century, so I can see in black and white that as you both say, we are being ruled by the insane and the stupid.

  3. permex says:

    I recall well and very expensively that the last crooks to engage in this type of social engineering were the Democratic membersa of the US Congress ……..precipitating the sub-prime debacle & ruining tens of thousands.
    Ownong your own house isn’t an entitlement
    We have no idea how to live within our means…not only Joe Public but successive gumments who simply syeal cash from the industrious to buy votes & goodies for the indolent.
    If you can’t afford to save & buy a house, get on your bloody bike FFS & go to work.
    I’ve yet to meet anyone who would voluntarily pay for another’s mortgage………..unless, of course, it was with someone else’s money.. Now there’s a thought!

  4. permex says:

    Almost forgot…………see Cranmer today.

  5. RAB says:

    Quite permex.
    It was the Burger King, Billy Clinton hisself, that instigated the sub-prime debacle, by twisting the arm of Freddy Mac and Fanny May to lend money to people without shoes, let alone a 5% deposit.

    I was just walking the bonkers dog in our local park. Lovely day. I bought a can of beer that last week cost £1.49. This week it has gone up to £1.89, and iDave thinks that people who can’t afford a proper deposit are going to be able to keep up the payments on their mortgae with inflation running at that rate?

    The man is a buffoon, but then we round here have always known that haven’t we?

    I was on holiday in Dorset last week. We stopped in to give Sandbanks a look. It is the fourth most expensive place to buy property on earth, let alone the UK. Pleasant place, but not one and a half million for a flat it isn’t, and gawd knows what a whole house with views over Poole Harbour and the Channel costs. But they have no problem selling them. Poole estate agents have now set up branches in Moscow.

    The property bubble never burst at all in some places, and never will, an iDave thinks the Bank of England can keep a lid on it! How?

  6. single acts of tyranny says:

    it is about the 2015 election and NOTHING else

  7. Paul Marks says:

    Good post and comments.

    This idea (a weird mixture of bad monetary policy and bad fiscal policy) is so terrible that I do not know where to start.

  8. John Galt says:

    “I do not know where to start.”

    The old ways are the best, sit Cameron in a room with a bottle of Whiskey and a loaded revolver and lock the door from the outside.

  9. [...] the Tories are going for another housing bubble to rival the Brown Gorgon’s and scientists think they are politicians and can lie with [...]

  10. Mr Ed says:

    Like Mr Major, his successor has taken one political decision in his life – to be a total sh*t – and like his predecesor, Mr Cameron has stuck to it like a limpet.

  11. Robert Edwards says:

    This policy is way beyond parody; the idea that current asset prices can be supported by this crude Ponzi scheme is absurd. Outside the London bubble, little real estate is selling, or if it is, it is selling at way below asking prices. Given the economic backdrop, this is q. logical.

    To bolster sellers and con buyers in at these artificial, dare I say random, levels is bad enough – to suggest that the taxpayer should underwrite them is even worse.

    If the fundamental of the egregious ‘buy-to-let’ market (which will be the first to tap this synthetic credit) is the income derived from housing benefit, which it is, then the reduction of this cashflow (q. correct) should allow the market to adjust itself downwards, and sharply. A few tears, a few broken heads, but there you go – that is life in the markets. A few houses banged out at sensible prices, slightly smaller portfolios and a salutary lesson for all. Until this boil is lanced, the market will choke, through simple greed.

    So conditions now exist for a perfect storm – a long-awaited meltdown in UK property prices. Real Estate is the last market to acknowledge that things are crap – it is in a state of perpetual denial, now suprported, it seems, by government policy. Am I missing something?

  12. Ljh says:

    This goes beyond “A chicken in every pot” kind of populism. Mili and Dave want to promisemoney trees to every voter.

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