Government (ie. your taxes) at work

[DimPrawn]

http://www.telegraph.co.uk/finance/f...mists-say.html

At a cost of around £50bn over five years, it would help to prevent a further unravelling of the housing market slump and the social distress which comes with repossession, according to a report by Shamik Dhar and Danny Gabay, directors at Fathom Financial Consulting.

Mr Dhar said that Fathom's plan would involve the Government buying homes at a discount to market prices, to protect the taxpayer. It would then rent the property back to the former owner, allowing families to stay in their own homes through difficult times.

"Essentially the tenant turns into a council house tenant," said Mr Dhar. "The Bank of England will have to print money at some point, so why not buy the assets that are at the core of the problem?"


Yep we are all to become BTL landlords, whether we like it or not.

I love New Labour!

[Bagpuss]

I can't afford to buy a Bugatti Veyron. Perhaps the Government could buy it for me and I could rent it off them?

[chris79]

I think the future lies with making all jobs pay exactly the same amount of money equally, regardless of the job. All future houses are built to an exact specification, and 50% of all tax money is spent on the military.

[sasguru]

http://www.telegraph.co.uk/finance/f...mists-say.html

At a cost of around £50bn over five years, it would help to prevent a further unravelling of the housing market slump and the social distress which comes with repossession, according to a report by Shamik Dhar and Danny Gabay, directors at Fathom Financial Consulting.

Mr Dhar said that Fathom's plan would involve the Government buying homes at a discount to market prices, to protect the taxpayer. It would then rent the property back to the former owner, allowing families to stay in their own homes through difficult times.

"Essentially the tenant turns into a council house tenant," said Mr Dhar. "The Bank of England will have to print money at some point, so why not buy the assets that are at the core of the problem?"


Yep we are all to become BTL landlords, whether we like it or not.

I love New Labour!

Actually this makes much better sense than any other proposals put forward and at a relatively modest cost too (what's 50 billion compared to the other stuff they've wasted and are going to waste?). Much better value than bailing out the banks.
And when the property market rises (as it will do) then the taxpayer gets it all back.
By making people feel a little more secure, they'll spend more.
The housing market will stabilise a lot quicker ensuring confidence.

I like it - finally a sensible proposal.

[DimPrawn]

Actually this makes much better sense than any other proposals put forward and at a relatively modest cost too (what's 50 billion compared to the other stuff they've wasted and are going to waste?). Much better value than bailing out the banks.
And when the property market rises (as it will do) then the taxpayer gets it all back.
By making people feel a little more secure, they'll spend more.
The housing market will stabilise a lot quicker ensuring confidence.

I like it - finally a sensible proposal.

You really don't think deeply into anything do you? Just like the AGW stuff, you see the hockey stick graph, bingo, the opinion is formed in your tiny mind.

Think about it. It's the most ridiculous idea at every level.

[jkoder]

I think it sounds like a pretty decent idea myself.

What's all the fuss about?

[PM-Junkie]

Actually this makes much better sense than any other proposals put forward and at a relatively modest cost too (what's 50 billion compared to the other stuff they've wasted and are going to waste?). Much better value than bailing out the banks.
And when the property market rises (as it will do) then the taxpayer gets it all back.
By making people feel a little more secure, they'll spend more.
The housing market will stabilise a lot quicker ensuring confidence.

I like it - finally a sensible proposal.

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.

[sasguru]

You really don't think deeply into anything do you? Just like the AGW stuff, you see the hockey stick graph, bingo, the opinion is formed in your tiny mind.

Think about it. It's the most ridiculous idea at every level.

Says the Daily Mail little Englander
There, there. Leave the thinking to people with more than your few measly brain cells, there's a good chap.

[bored]

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.

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.

[sasguru]

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.

It would be a pragmatic solution that goes to the root of lack of confidence in the economy. But as you say there must be many provisos.
Certainly better than printing money which has consequences no one can predict.