Why do Governments led by the learned opinions of economists (many of whom can’t balance a chequebook in my experience) keep interfering in the housing market?
In the United Kingdom the barrow of “HELP TO BUY” is being pushed. The Government thinks it’s doing the right thing by providing up to 20 percent of the price of a house (as some kind of freebie) to encourage lenders to lend to people who just manage to scrape together a 5 percent deposit.
Are they NUTS?
This is heading for a repeat of what started the mess we’re in right now. House prices will just jump to soak up the “government handout” and a whole bunch of people who also cannot balance their cheque books, will be given loans that they’d otherwise not qualify for. Give it a couple of years, these hapless folk default, the market is (again) flooded with mortgagee-in-possession sales and prices tumble, AGAIN!
Looking beyond the housing market, we see articles about youth unemployment in Europe where, for example, a museum advertised 11 low paying jobs and received over EIGHTEEN THOUSAND applications. There is and has been much talk bout the moving lump of baby boomers through the economy and the effects, good and bad that WE have had, but the up and coming problems in Europe where chronic long term youth unemployment is threatening to destabilise Nations is something we have to keep an eye on.
I read a lot from my bank, HSBC. They have their fair share of economists, pollsters and researchers but come out with some interesting stuff. They say the economic cycle has peaked and is on the way DOWN. if governments haven’t got their act together now and economies aren’t strong, well, basically, they’ve missed the boat. They are still looking to US Treasuries, but calling them ‘the least rotten apple in the barrow’. Well THAT inspires confidence – NOT!
Europe is the canary in the coal mine.
America is weakened to the point of (nearly) no return – I’ve just come back so have seen, and heard, for myself.
Australia is poised to go down with the Chinese Junk.
Biting fingernails anyone?
We are clutching at straws and re-arranging the deck chairs on the Titanic.