Talking to a surveyor about the near collapse of trade, I wonder about the impact of the current housing bubbleburst on people’s lives. And about debt and oppression — a classic Old Testament theme.
Even non subprime backloaded US mortgages are funny old things:
The UK government has announced some desperate measures this week to try and ease things, including a stamp duty holiday for houses under £175,000 and 100% loans. It’s hard to see what they could have done, but:
- When you look at the trillions involved in the bubble, how could any realistic fiscal measure make much of a dent in the real problem? Will four times as many people now rush out and buy houses, given all the other pressures on them from accumulated personal debt, rising energy prices, 2% pay settlements, etc? I think not, Holmes.
- Stand by for one unintended consequence — all low end asking prices (say up to £300,000) now nosedive to £175,000. Shome mishtake? If there were a miraculous mass recovery in low-end house prices, guess where it will be pegged? £175,000?
- Just as all sensible financial institutions decide subprime 100% lending is a mug’s game, part of the problem, not the soluton, jolly UK taxpayers (= us) dive in headfirst bigtime... I feel a Homer Simpson “D’uh?” moment coming on.