Mortgage Holders to be bailed out by the Government?

Discussion in 'Current Affairs, News and Analysis' started by Infiltrator, Apr 22, 2008.

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  1. http://news.bbc.co.uk/1/hi/business/7361137.stm

    So, if you have been a bit of a berk and bought something you can't afford you get help and some reward, but if you have been prudent, thinking that prices were artificialy high and have waited for things to even out, you get sh1t on again!
     
  2. Totally baffled how a Socialist Government can bail out Property investors with billions but turn their backs on small savers who put their pennies aside for a Christmas hamper, only to have the money stolen from them by the big banks.
    New Labour (old tory) .... your days are numbered!!!
     
  3. BobJamesCo,

    This is a Socialist government that is made up of ministers who upon being turfed out at the next election,hope to slip quietly into plum city appointments as a reward for giving the Square Mile an easy ride when they were in power.

    Labour's new motto;

    Profit is private(and if untaxed,good luck)

    Loss is the state's(i.e.taxpayer's) responsablity.

    The Labour Party are in debt in a big way,perhaps they are hoping for a few donations from the city to tide them over.
     
  4. in_the_cheapseats

    in_the_cheapseats LE Moderator

    See, I don't see how HMG can make this assertion. They can't say noone will lose their home. What does that do to the housing market? What does it do for the fcukwits that have over extended themselves? What happens if (God forbid) we really have a meltdown? All to be bailed out...........?

    Watch me run for that unaffordable mortgage....no pressure not to after all, I'll be looked after..... Nuts!

    The market has got to be self correcting, painful as it maybe.

    What I read in the article worried the hell out of me. If we have a Chancellor with so little understanding of the theory of market economy, we are on the edge of a lake of pooh so deep we may all drown.
     
  5. Just give Labour enough time and they will screw the economy, AGAIN.
    El Gordo just does not understand the words Value For Money, Spend and Squander is, his style.
    john
    Only this time I can't see a savior on the horizon.
     
  6. Biped

    Biped LE Book Reviewer

    Here's a little story (just my take on things):

    The Labliar gobment suggested to the BoE AND the other banks that providing cheap money to all and sundry was a good thing, just so that Brown could claim his policies were providing economic stability, and thus win elections. "We'll see you right" he said "it's what is needed for our economy".

    The banks leant out shedloads of money, with cheap interest rates, supported by the BoE.

    Everything looked rosy in the garden for a while as people spent shed-loads of money they didn't have.

    Of course, all good things come to an end, and the rise in the cost of living, plus the fact the banks in the US AND the UK leant much more money than people could afford to pay back if a: the cost of living went up, or b: the interest rates went up. Not only did they lend money to the maximum to those that could afford it at the time, they all dipped into the sub-prime market, on both sides of the atlantic.

    The good times kept rolling along . . . .

    And then both A AND B happened.

    The banks went to Gordo and said "Right, you told us to do this, and you said it would all be rosy, but we've now got our fingers burned, and you better see us right like you said!"

    Gordo said "Look, just keep this under your hat about our 'little arrangement' and we will square you away - after all, we'll sort you out with the public's money, it's what we spend, and you earn from, but for god's sake, don't tell anyone we put you up to this!"

    £100 billion of tax-payer's money later, for 'continued economic stability' you understand - "didn't we in Labliar say we'd look after you Jo public? Well, here we are and we are doing it, aren't we good?"

    "Never mind all that!" says Jo Public "We are up to our necks in debt, the interest rates are going up, we've borrowed way more than we can afford, and fuel, gas and electric (plus your fcuking taxes) are going to cost us our over-priced homes - your going to get fired, and you ain't going to work in this town no more!"

    "aaaaaah, eerrrrrr, wait a minute!" says Labliar "Don't you worry your pretty little heads about it; we are the gobment that cares about you, and economic stability! We'll see you right and help you keep your homes. It'll cost a few quid to sort out mind you, but we've got plenty (er, we think, oh sh!t, no, we lost a packet selling the gold off, and we've borrowed up to the hilt too . . . sssshhhhhh). Anyhooo, we'll use your own tax money to bail you out with the banks!"

    Sweet.
     
  7. There was a little snippet in the Telegraph comment last week about the government, having nationalised Northern Rock, was trying to nationalise mortgages.

    This arrogantly assumes that the bunch of failed lawyers, incompetant millionaires wives and daughters playing at being socialists and former social workers who have never had a proper job are more competant at running nationalised concerns than the professionals.

    We are heading down a very long, slippery, path - this profligacy is going to have to be paid for somewhere along the line. The treasury has already said that it will guarantee the BofEs bonds to the banks and who bails out the treasury? - that's right, us the taxpayer. Look forward to years of pain - whoever forms the next government.