House Prices

[chubba]

We have been screwed over by the greed of the banks they have gambled with our futures.

Did you buy your place in the hope of making a profit or because you saw that the housing market was well balanced and city-centre flats were a bargain? Most of the people facing negative equity have been screwed over by their own greed and stupidity, the banks just helped you on your way

[AtW]

When I refer to 'loans being called' I mainly mean the loans to Northern Rock from the Bank of England. The government are trying to reduce the mortgage book from 100 Billion pounds to 50 Billion approx. The net affect of this is to take 50 Billion of liquidity out of the system.
Atw, you do yourself no favours in the credibility stakes by resorting to abuse which I notice you also did to the poster Mailman. Just because other people's opinions may be different to yours, does not always make them wrong. Please try to keep on the subject rather than behaving like a child throwing its toys out of the pram.

Well, I don't think you really have a clue when you suggest that Govt should just "print" money, this is not a matter of abuse - it is just the only logical conclusion that anyone who studied macroeconomics can make seeing person suggesting to "print money".

The Govt has no choice - it dumped lots of money into NR and now has to get it back, the only way to do it is to push people with morgages elsewhere, this is effectively selling NR in small parts while only selling good small parts (those that get morgage in another bank).

If the Govt does not do it, then there are rules about states aid in the EU, and more importantly UKs national debt increases sharply - this will affect further borrowing and rates at which UK can borrow, this can be very expensive as UK Govt is in debt already, so the only sensible way is to shut down NR in small parts like they do now, and put more money into liquidity by offering extra loans to UK banks, something that BoE is already doing anyway.

[expat]

Our authorities have been totally inept so far. The USA FED were aiding the money markets in June last year and we did not start until after the run on Northern Rock.

And I suspect that Northern Rock was only taken on because nationalising a bank has been a lifelong dream of Brown's.

[AtW]

And I suspect that Northern Rock was only taken on because nationalising a bank has been a lifelong dream of Brown's.

Rubbish - he never wanted it to happen because it was sooo Old Labour.