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A bit on my email today :-

The government's £37 billion bank recapitalisation plan was criticised yesterday by the Council of Mortgage Lenders (CML).
According to the group, certain commitments of banks demanded by ministers were not "prudent or desirable" as the govt wants lending to return to levels of 2007. i.e back to the very position which caused the crisis !!

Albeit that these levels of finance are impossible since Northern Rock's 125% mortgage accounted for most FTB lending in the UK during 2007, but I guess stupid prats who don't know WTF they are talking about wouldn't know that unless they bothered asking before talking out their backsides when it comes to finance.

Except a dicky bird told me that a certain Chancellor actually has one of these unfavorable mortgages himself but of course that doesn't count for anything I guess.

How about "I want us to do even more to start OPPOSING this Labour Government" ?

Excellent quotes.

Couple that with Part II, the corresponding ones from the time when Osborne was critical of such views and you will have electoral dynamite.

Are you going to publish Part II today as well?

And there we have it - what exactly was wrong with encouraging risk takers? Absolutely nothing: they're the keystone of a dynamic capitalist economy. And they, not government - who we reasonably have to infer you think would know better how to assess risk - thereby create wealth. This really is Thatcherism 101, and that's what's at stake this week - the tearing up of the Thatcherite settlement, and Osborne's putrid part in it. What's wrong *isn't* that business have gone bust, it's that the government won't let them go bust! And what's noxious politically is that Osborne is tripping over himself to support this Labour lunacy.

If the choice is between Brown's, belated, honest socialism and Gidder's lying variant, the public aren't going to find it a hard one.

"That was Gordon Brown in 2004 talking about the City"

Why has it taken so long for the Conservative party to dig up some embarrassing Gordon Brown quotes when Labour have been embarrassing the Conservatives with quotes for weeks ?

Asleep on the job, or is there a great deal more professionalism needed in CCHQ ?

The difference between normal risk taking and excessive risk taking is success. During the good days no one had a problem with such excesive lending. It was only when the system seized up that the previously pretty good decisions became terrible ones. But things are so much easier to judge with hindsight, arent they?

My understanding of the kicking lending up to 2007 levels policy is that this lending problem we have is one which requires slow weaning off rather than a cold turkey solution.

ACT at it again, he/she is working so hard that one wonders if there is a direct contact to one of the new members of GB's large Cabinet!

The average combined income of a working man and wife is close to £48,000. The traditional mortgage multiplier is 2.5 times joint income. On that traditional basis the average family, having saved a 10% deposit, can raise around £135,000 for their home.

The average house price is around £210,000.

For price and affordability to come into line then either:

1. we must ingnore the lessons and continue with high debt levels and income multipliers or

2. we are only at the beginning of one almighty house price crash.

Would anybody care to correct my logic?

Sadly, this government is so self-serving that it would pawn everything in order to prop up lending and avoid an election-losing price crash. Borrowing, however, is only an illusion of wealth and is unsustainable.

Yeah, I'm hard at work displaying my secret socialist sympathies by, er, saying that what's wrong with Tory policy is that we're so precisely mimicking Labour's. Go figure.

"Sadly, this government is so self-serving that it would pawn everything in order to prop up lending"

It was the fact that the government *and* opposition, in tandem, focused on finding more schemes to 'help' get more people on the ladder in the face of rising prices rather than stop and consider whether prices were too high that is the root cause of the whole problem, because this reduced the profile of any serious discussion about overblown house prices.

The government and opposition said nothing whilst the commercial vested interests (banks, estate agents etc) were happy to keep pushing more people into mortgages they could not afford as house equity was better than earning a living.

Complete madness.

House prices increased around 66% in three years (end 2000 to end 2003). At this point many people started shouting about a worrying bubble.

But our leading politicians, Vince Cable aside, could see no problem.

Saltmaker makes a good point. reduce £210k by 35% and you're there.

A number of commentators have suggested that there needs to be a correction of this order, but that is going to be very painful for those who bought at the top of the market.

hvorfor ikke:)

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