Government (ie. your taxes) at work

[DimPrawn]

Slight variation to this idea for the idiots here:

The government pays off everyones mortgage in the UK and lets us all live rent free forever.

This means most people are a lot better off, so they spend loads of money. Spend spend spend.

The economy booms!, millions of jobs are created and the government gets all it's money back in extra tax revenues.

Sorted!

[Sysman]

I agree...but it makes me slightly nervous that they are coming out with what looks like it could be a good idea. Experience shows that the devil is in the detail with this mob and I'd want to see the fine print to see what the inevitable catch is because as you say, on the face of it this seems to be a potential winner for the taxpayer over time. And that would be completely out of character!!

So I suspect there is more to this than meets the eye.

Where do I send my bill? My prediction from 28th April 2007.

[Ruprect]

If they can't make the mortgage payments, what makes you think they will pay the rent? At least with repos you might actually learn a lesson. Harsh, I know.

[sasguru]

Slight variation to this idea for the idiots here:

The government pays off everyones mortgage in the UK and lets us all live rent free forever.

This means most people are a lot better off, so they spend loads of money. Spend spend spend.

The economy booms!, millions of jobs are created and the government gets all it's money back in extra tax revenues.

Sorted!

Ah the straw man argument. I thought I had explained that concept to you.
But I forgot you are a first rate simpleton (and not a very rich one at that )

[Mich the Tester]

Slight variation to this idea for the idiots here:

The government pays off everyones mortgage in the UK and lets us all live rent free forever.

This means most people are a lot better off, so they spend loads of money. Spend spend spend.

The economy booms!, millions of jobs are created and the government gets all it's money back in extra tax revenues.

Sorted!

Actually, looking at the quazillions of euros/dollars/pounds pumped into the system by the US, UK and EU, they could possibly have done that and it might have been cheaper than bailing out failed banks.

Still wouldn't cover the bad business loans and lost savings though.

[Solidec]

Positives and Negatives to this plan.

Positive is a means for the government to boost its social housing stock when prices are relatively low (dont think they are anywhere low enough yet to warrant a mass homes buyout yet)

Negative is they basically suck up a lot of good housing which prevents those sensible people that HAVE saved for a deposit and want to buy their own home from getting into the market.

It will cause a huge supply and demand issue in the private market, spiking prices into another bubble, which is just idiocy.

[PM-Junkie]

The suggestion is in a "report by Shamik Dhar and Danny Gabay, directors at Fathom Financial Consulting;" they used to work for the Bank of England. That's hardly government policy.

My bad - thanks. I feel much more comfortable now...and of course it being a good idea means it won't be adopted!

[bored]

My bad - thanks. I feel much more comfortable now...and of course it being a good idea means it won't be adopted!

Exactly my thoughts

[sasguru]

Positives and Negatives to this plan.

Positive is a means for the government to boost its social housing stock when prices are relatively low (dont think they are anywhere low enough yet to warrant a mass homes buyout yet)

Negative is they basically suck up a lot of good housing which prevents those sensible people that HAVE saved for a deposit and want to buy their own home from getting into the market.

It will cause a huge supply and demand issue in the private market, spiking prices into another bubble, which is just idiocy.

Don't think so. If the authors are right only a few hundred thousand properties at the lower end of the market will be affected.

[Solidec]

My bad - thanks. I feel much more comfortable now...and of course it being a good idea means it won't be adopted!

Anyone watch the dithering stuttering numpty ex MPC member on newsnight yesterday waxing lyrical about the joys of quantitative easing? /facepalm x 100 sprang to mind, what a doofus.

Even James Kahn was talking bollox, asking for legislation to force banks to lend at rates approriately pegged to BoE base rate. People have gone insane.

For god sake, set up a NEW state controlled National Savings and Loans bank already and just go to the heart of the problem. (Could just turn NS&I into this without much hassle)

6% Savings interest for all deposits, 8%-11% Loan rates depending on risk and term.

Problem Focking Solved!