Is anything more appallingly stupid than this new buy guarantee housing plan?
APOLOGIES, but it really does seem that we’re being ruled by entire cretins. The current government has decided to repeat all of the damn fool mistakes that the Americans made before their housing crash with a new buy housing plan:
£500,000 mortgages backed by the taxpayer as NewBuy Guarantee scheme launched
Up to 100,000 people will get Government support to buy new homes worth up to £500,000 in a Coalition move to revive the middle-class dream of home ownership, ministers will announce.
You what? Has someone been serving magic ‘shrooms in Cabinet or something?
Look, the US housing crash came about because people who didn’t have enough money to buy a house got subsidised into being able to buy a house.
So, we here are about to go through exactly the same process? Are these people mad?
Don’t forget, the biggest bankruptcies of the crash were not banks: they were Fannie Mae and Freddie Mac: the companies that the US Govt used to insure mortgages.
I’ve just heard on the radio someone defending these scheme by saying that it’s OK, interest rates are low, but people just cannot find the deposits.
Umm, that’s why we need large deposits, because interest rates are low. For imagine what is going to happen when interest rates rise again to those people with small or no deposits.
Yup, they’ll be straight into negative equity, won’t they, just as their mortgage payments double.
So, here’s the really important question. How do we manage to get adults to become politicians then?