Politics

[Happy Face 29]

You seem to not understand that the sub prime mortgage crisis was an overseas problem.

 

Aye, those people queuing outside of Northern Rock at the outset should have been queueing outside of Bank of America.

[Renton 21392]

The shit will hit the fan when interest rates rise, which they will eventually. People used to buy houses based on 2 1/2 times their income. It's now double that. The ultimate outcome is inevitable and obvious.

[Happy Face 29]

Big deposits are new and a knee jerk over reaction.

 

 

Your pride in the safe hands of tories is undermined by your gung ho view of lending policies.

 

Derugulation came in the 80s and allowed your 100% mortgage, but what you call "big deposits" of 10% are actually the lowest the average mortgage deposit has been.

 

Prior to derugulation it was up in the 30s and up until last year it was back into the 20s. Safer levels.

 

 

The picture is similar for first time buyers...

 

 

http://www.edmundconway.com/2013/03/22/

 

"Big deposits" are the norm, and 10% should be an industry minimum.

[Howmanheyman 32824]

Happy Face leaving a 'big deposit' on CT's political plate.

[Happy Face 29]

The shit will hit the fan when interest rates rise, which they will eventually. People used to buy houses based on 2 1/2 times their income. It's now double that. The ultimate outcome is inevitable and obvious.

 

Aye, that link provided above is an interesting read on the "help to buy" policy, and includes this graph too...

 

 

As you can see, whereas in the 1970s a deposit cost about two times a first-time buyer’s salary, these days it’s well over three times salary. It’s in this light that one ought to consider the problem of over-expensive housebuying. The explicit target of the Help to Buy program is to get deposits down to 5% of the home value. However, the real problem isn’t that deposit requirements are necessarily too high, it’s that first-time buyers (and bear in mind the FTBs these days are older than ever before) don’t have high enough incomes to afford them.

 

Surely the objective ought to be to try to raise average incomes rather than mechanically reducing the requirements of mortgage companies when lending out cash. That in turn comes back to the fundamental problem: that Britain’s GDP levels (the aggregated total of incomes across Britain) are still well below the pre-crisis peak, which leaves everyone – first-time buyers included – poorer as a result. Help to Buy won’t in and of itself do anything to help that.

[Christmas Tree 4709]

 

Aye, those people queuing outside of Northern Rock at the outset should have been queueing outside of Bank of America.

 

 

Its a simple point that you seem to be avoiding

[Christmas Tree 4709]

 

 

Your pride in the safe hands of tories is undermined by your gung ho view of lending policies.

 

Derugulation came in the 80s and allowed your 100% mortgage, but what you call "big deposits" of 10% are actually the lowest the average mortgage deposit has been.

 

Prior to derugulation it was up in the 30s and up until last year it was back into the 20s. Safer levels.

 

 

The picture is similar for first time buyers...

 

 

http://www.edmundconway.com/2013/03/22/

 

"Big deposits" are the norm, and 10% should be an industry minimum.

 

30 odd years of low deposit UK mortgages did not cause the world economic crash

[Christmas Tree 4709]

For those who enjoy the punch and judy of politics, Cameron has just wiped the floor with Red Ed.

[Happy Face 29]

 

30 odd years of low deposit UK mortgages did not cause the world economic crash

 

The UK didn't cause the crash. The methods used are international. That's exactly why your nonsense arguments over labour's mess and Cameron's clean up are so bone-headed. Good to see you recognise these things.

 

Securitisation was a more recent development that exploits cheap mortgages and led to the crash.

 

Northern Rock were heavily reliant on international borrowing to fund their cheap UK mortgages which were sold on international capital markets. When the demand for securitised mortgages fell away they were exposed, up shit creek without a paddle.

 

The only person avoiding anything is you on the question of what makes Cameron's growth figures so heartening and those under Labour so dangerous.

[Happy Face 29]

For those who enjoy the punch and judy of politics, Cameron has just wiped the floor with Red Ed.

 

The only people that give a shit about that charade are either in parliament, reporting on parliament or bored at home drinking twinings.

[Renton 21392]

The only person avoiding anything is you on the question of what makes Cameron's growth figures so heartening and those under Labour so dangerous.

Plus why big government = bad but big nhs = good, and examples orbit government he wants scrapped.

 

CT's a mass of contradictions and ignorance dressed up in preschool language - 'Red Ed' ffs.

[ewerk 30368]

For those who enjoy the punch and judy of politics, Cameron has just wiped the floor with Red Ed.

 

 

 

And we need to change, and we will change, the way we behave. I'm fed up with the Punch and Judy politics of Westminster, the name calling, backbiting, point scoring, finger pointing.

[Christmas Tree 4709]

 

Fuck! I thought we'd deleted all them

[Happy Face 29]

 

See you back here in a few months CT, when it's time to report on the next Tory uptick as if the last 4 pages never happened.

[Dr Gloom 21846]

There's a clear shortage of available housing in this country. Two solutions, either increase supply to match demand and let prices stabilize or drop, OR let the government artificially stimulate demand by providing loans which will inevitably lead to further inflation of house prices. How is the latter possibly good in the longer term?

increasing supply is the obvious solution, but that means building on the green belt, something the 'not in my back yard' brigade, ie the tory faithful, would never go for.

 

help to buy is pure populism. voters feel all warm and fuzzy when the value of their property goes up , which is exactly what's going to happen in the run up to the election on the back of this policy and the failure to address the supply issue.

[Christmas Tree 4709]

increasing supply is the obvious solution, but that means building on the green belt, something the 'not in my back yard' brigade, ie the tory faithful, would never go for.

 

help to buy is pure populism. voters feel all warm and fuzzy when the value of their property goes up , which is exactly what's going to happen in the run up to the election on the back of this policy and the failure to address the supply issue.

What bollocks. Labour had 13 years man and built sweet FA

[Christmas Tree 4709]

 

See you back here in a few months CT, when it's time to report on the next Tory uptick as if the last 4 pages never happened.

All the last four pages is that you have your fingers in your ears going "not listening, not listening".

 

The people this is helping ARE creditworthy and most likely WILL pay their mortgage no differently than what most people in this country have done over the last 30 odd years. (Many on considerably less deposit than the minimum 5% needed today).

 

All the government is doing is acting as a short term guarantor to allow creditworthy people to do what the rest of us have done during the majority of my life.

 

You comparing this to overseas sub prime means you have no grasp of the reality of this scheme.

 

 

[ChezGiven 0]

You seem to not understand that the sub prime mortgage crisis was an overseas problem.

You've spent the last 4 years on here blaming Labour. It pains me to have to point out the cause of the downturn in growth, so I won't.

[Christmas Tree 4709]

You've spent the last 4 years on here blaming Labour. It pains me to have to point out the cause of the downturn in growth, so I won't.

There are many factors involved as I have always said. I do however remember you ranting on about there only been one way to get out of the mess following your guru yet here we are doing quite well thank you very much.

[ChezGiven 0]

Triple dip recession with high unemployment for 4 years. That's what was predicted and its still not over. It was avoiding the last 4 years of shit that was the point of the debate. The policies that prolonged the Great Depression of the 30s arent now correct because that's over either.

 

Let's be clear though, you blamed Labour for the financial crisis because of all their 'over spending' on the NHS.

[Christmas Tree 4709]

Triple dip recession with high unemployment for 4 years. That's what was predicted and its still not over. It was avoiding the last 4 years of shit that was the point of the debate. The policies that prolonged the Great Depression of the 30s arent now correct because that's over either.

 

Let's be clear though, you blamed Labour for the financial crisis because of all their 'over spending' on the NHS.

Never, but hey ho, keep saying it and I'm sure it will become true.

[Tom 14011]

[Dr Gloom 21846]

What bollocks. Labour had 13 years man and built sweet FA

i never said they did, so there's nothing bollocks in my post. labour are effectively a watered down version of the tories today. not quite as despicable, but not far behind.

 

what clearly isn't bollocks is the need to address the supply side, not further fuel a housing bubble, which is all help to buy is going to do. it's a silly, populist policy.

[Meenzer 15429]

http://www.mirror.co.uk/news/uk-news/tory-lord-james-blackheath-wants-2814187

[Monkeys Fist 42129]