The highly respected Liberal Democrat Shadow Chancellor, Vince Cable, has suggested that measures the British New Labour Government is contemplating, amount to nothing less than trying to bribe people to buy houses in a falling market!
Indeed it would seem that Prime Minister Gordon Brown's economic policy, when he was chancellor, may have been so inexorably linked to house price inflation that his party's only way out is to try to re-inflate the bubble. As they lurch from one crisis to another they are throwing more money at the failed Northern Rock Mortgage Bank. Apparently £3 Billion, £3000,000,000, is being converted from a loan to equity, and it is feared that taxpayers might not see a return on their enforced 'investment'.
There has been much talk, of so-called amateur investors, catching a cold over buy -to-let investments. That is unfortunate, but those who really come out with egg on their faces, are a few well to do bankers, and of course the Government, who seem to have allowed circumstances to overtake them, and now to be clutching at straws. Some senior bank officials have kept their jobs and others have fared well with bonuses and the like. But if the government continue to throw taxpayers money about like confetti they could be torn to shreds at the ballot box.
Mr Cable has been a voice in the wilderness, but has spoken with the authority of one who knows a thing or two about financial issues. In fact he seems to be quoted more frequently than George Osborne who is his opposite number in the British Conservative party. Of course a certain Alistair Darling is now the Chancellor, but what was a good job is now something of a poison chalice, and a reshuffle could see someone not so close to Mr Brown being offered the position, more as punishment than reward!
There is a tendency to blame outside forces, particularly the United States sub prime market, for all ills. Nobody forced British Banks to invest in the United States mortgage market, and in any event it seems that injudicious internal home lending, is much to blame for the predicament in the UK,
Mr Cable for one thinks the UK Government continue to get it wrong. For British taxpayers to have to subsidize dodgy mortgage deals without so much as a House of Commons vote, might just be one mouthful too much to swallow!
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Mortgage Bribe Just a Jibe!
Mortgage Bribe Just a Jibe!
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