Monday 12 March 2012

Lessons will be learnt

A mantra routinely offered by government, quangos, or 'fake' charities, when something goes wrong on their watch - yet it seems lessons have not been learnt.


The Daily Telegraph advises us that David Cameron will today formally open the NewBuy Guarantee scheme, where the Government guarantees part of a homebuyer’s mortgage, allowing them to take out much larger loans than they might otherwise be eligible for. (Emphasis mine)


Politics Home quotes Grant Shapps stating that this isn't going to cost the taxpayer very much money at all, if anything. (Emphasis mine)


Details of the NewBuy Guarantee scheme have been released here.


Even bearing in mind the statement issued by the Council of Mortgage Lenders, one has to ask: is not spending money that you haven't got how people and the last government created problems for themselves and the country? The statement by Shapps beggars belief - of course it will cost the taxpayer initially, whilst the proposal also brings in that element of 'referism', something which I have mentioned previously.


I hope that I am not alone in thinking this proposal a tad stupid?


Just asking........

7 comments:

Batsby said...

Indeed, Witters, it will end in tears.

I wonder if a government that actually told the truth (good news or bad) kept within budget and strove to apply the same rules to all would gain any popular approval?

No, I didn't think so...

Antisthenes said...

This scheme is the bastard child of Fannie Mae and Freddie Mac. The ones that were the root causes of the first banking crisis. No doubt the government only remembers the period of boom and conveniently forgets the bust. More likely sees that growth elsewhere in the economy is a forlorn hope and that is more important to have the upside now with the downside too distant to worry about. Besides it will be popular with the middle classes who are fast becoming disillusioned with the coalition.

Captain Ranty said...

Blood will be spilt as the revolution gathers pace...arm up freemen.

Time is short.

Stuart said...

If anything, ratios of borrowing to earnings should be reduced. When I were a lad, we could borrow 2.5x joint wage. I am given to understand that you can now borrow considerably more than this. Why is there no push for people to save for rainy days and take out affordable mortgages? I guess the answer is that the lack of atificial growth produced by overstretched mortgages and the inherrant house building boom would make the whole house of cards tumble (no pun intended).

Anonymous said...

And if your NewBuy Gov. Guaranteed home drops just over 5% in value? Negative equity...

TomTom said...

This is wonderful news - there must be 659 people in Central London ready to use their expense accounts to qualify

WitteringsfromWitney said...

B: And if we had direct democracy the bastards would have to tell the truth and live within the country's means.

A: Agreed!

S: Ditto!

TT: ROFL - if you understand Twitterese, that is! If not - loved it!