Government bribing electorate

[DodgyAgent]

What about a tax cut for businesses?

Corporation tax should be slashed

DA for PM

[Hill Station Murthy]

I have similar reservations over this Boris Island.

I can see how a huge undertaking of this nature would generate jobs but what I don't understand is this claim that this new airport will be a major communications hub for the whole of Europe.

If I want to get a plane to London I will go to Heathrow, if I want to go to Amsteradm I will fly into Schipol, if I want to fly into Italy I will take the aeroplane to Ciampino.

This notion that you can have an airport which serves as a hub for the whole of Europe, or for any other region for that matter, is a complete nonsense in my opinion. You get the plane to the country you want to go to.

Not an airport that is in a neighbouring country.

[DimPrawn]

Straight out of the New Labour book of meddling and tax squandering:

http://www.communities.gov.uk/docume...df/2033676.pdf

A new mortgage indemnity scheme will give help to tens of thousands of buyers currently frozen out of the market. We will invite local authorities to come forward with proposals for locally planned large scale development. There will also be a new £400 million funding pot to kick-start construction where it has stalled. Cash rewards will incentivise councils to bring empty homes back into use. A new deal on housing for older people will help them to adapt their homes and stay independent should they wish to. We’ll provide help to people and communities who want to design and build their own homes, and we’ll improve fairness in council housing by increasing rents for the most well-off, recycling the income into new housing.


Giving £400m to private developers to keep prices sky high so that young people not only have huge uni debts, but endless mortgage debt to line the property developers and banks pockets with. How this helps the future of Britain is certainly beyond me. And once that pot is emptied into some wealthy banker and property developers pockets, then what? Another pot, higher prices, rinse and repeat? Meanwhile your local hospital and school is closed to fund this.

[DimPrawn]

The Mash sums it up nicely

The Daily Mash - Housing market is pretty much all we have left, admits Cameron

[DodgyAgent]

I have similar reservations over this Boris Island.

I can see how a huge undertaking of this nature would generate jobs but what I don't understand is this claim that this new airport will be a major communications hub for the whole of Europe.

If I want to get a plane to London I will go to Heathrow, if I want to go to Amsteradm I will fly into Schipol, if I want to fly into Italy I will take the aeroplane to Ciampino.

This notion that you can have an airport which serves as a hub for the whole of Europe, or for any other region for that matter, is a complete nonsense in my opinion. You get the plane to the country you want to go to.

Not an airport that is in a neighbouring country.

I think you will find that in order to pay for this Heathrow will have to be closed and sold to developers. So if you turn up looking for a flight to antigua you might just be lucky enough to get a bus to Slough, which lets be honest is more or less the right direction.

[DodgyAgent]

The Mash sums it up nicely

The Daily Mash - Housing market is pretty much all we have left, admits Cameron

I hate to admit this but it was Thatcher that destroyed much of UK Industry

[scooterscot]

It's using tax income to help build new houses.

What's the problem?

The problem, thicko, is I had to work for my first deposit allowing me get my foot in the door and find a product I could afford.

Now we have:

Bankers: David, this eurozone are threatening to take away all our tricks with this tobin tax, we've got all this risk in our portfolios, we'd like to stay in London but... - what can you do to help?

mmm

David: Idea! I'll transfer this toxic risk over to the one part of society who can't do anything about it.

This is scandalous. No measure on any scale can be found to highlight the grottiest legislation proposed here. A massive transfer of risk from the wealthily over to the poor.

It's outrageous. What a corrupt state the blind support with the promise of a few cookies.

[scooterscot]

And then they would spend and the economy would recover, people could afford the deposit and mortgage payments and house prices would be sustained.

Giving their wealthy house builder friends tax payers money to make huge profits is morally wrong. They'll pocket a huge profit (registered offshore no doubt) and people will spend all their incomes paying for a house, with nothing left to spend on goods and services. The economy will continue to dive.

WHS - Did they even consider what happened in Ireland?

[scooterscot]

I think it is certainly a risk, but I cannot think of any other way to stimulate business in the UK at the moment.

That's the thinking of a follower, unable incapable retired and soon to be obsolete.

[doomage]

Moral Hazard in action

As you all know, one of the major concerns with bailouts & 'mechanisms' like quantitative easing is the concept of moral hazard.

Essentially, if businesses and individuals are protected from the downsides of their mistakes, then they are likely not learn from these errors and repeat them.

So this looks to me like an actual example of not learning from previous mistakes. Allowing people to borrow more than they can afford to pay back is just wrong, not just because it encourages fiscal idiocy, but it affects the market, in that prices will go up accordingly and you are back to square one. Prices going up will encourage the speculators again, but these price gains will only be an illusion as they are covered by the taxpayer, hence a bubble.

Also this latest action adds weight to the theory that the housing market is a pyramid scheme, with all growth reliant on new recruits at the bottom of the structure. It will eventually fail, and fail big. The fact that these measures seem necessary to the govt in an era of long term incredibly low interest rates suggest that there is neither appetite for lending nor borrowing in the property economy. The dead horse is being well and truly flogged.