Newbuy scheme: Dear God these people are fucking cretins

£500,000 home loans backed by the taxpayer as NewBuy Guarantee scheme launched
Up to 100,000 people will get Government support to buy homes worth up to £500,000 in a Coalition move to revive the middle-class dream of home ownership, ministers will announce.

Doesn\’t anyone, ever, have a look around the world to see the effet that such schemes, already implemented, have had?

This is the friggin\’ Gordon Mac that Willy Hutton was wibbling on about three weeks before Freddie Mac and Fannie Mae went tits up in the largest bankruptcies of the financial crisis.

How can anyone be so fucking stupid as to try an recreate that sort of monstrous meddling into the housing market?

That\’s the end of any pretence that these fuckwits are either conservative or liberal then.

18 comments on “Newbuy scheme: Dear God these people are fucking cretins

  1. /facepalm

    Great God Almighty, Osborne has lost his mind. Or I have. Perhaps I am in a secure home for the bewildered and this is just a bad drug trip. Or maybe removal of brains by aliens does really happen after all. HALP.

  2. Will be interesting to see what our favourite accountant has to say about this.

    He’s a great advocate of 95% mortgages (and thinks the likes of RBS & Lloyds should be forced to offer them). Yet thinks everything Osborne does is only to enrich his 1% chums. So tricky one for him.

  3. That was my initial reaction too, and call me an idiot for having this query, but isn’t there a difference between the government backing mortgages and the government providing a guarantee on part of the deposit?

    While it’s still excessive gubmint meddling, if it goes tits up they’d only lose x% of the deposit rather than have a liability for 100% of the original mortage.

  4. “How can anyone be so fucking stupid as to try an recreate that sort of monstrous meddling into the housing market?”

    Because they were idiots and screwed it up, but we’ll do it right!

    Thus any government attempt to reinvent the wheel…

  5. There’s never been any pretence that these people are conservative or liberal:they’ve all been solidly Homeownerist ( a political system to stay in power through distributing unearned capital gains in housing rather than through earnings in the wage system )since the 1960’s.Its gone global ‘n’ all.

  6. Groudhog day – help people buy something that they can’t really afford unless everything goes OK and hope prices rise again so everyone feels good. Then wait for the inevitable.
    Prices will of course rise again because people can obtain money which they can not at present. Only possible reason for doing this is to win an election from the feelgood factor. People would be buying if houses were cheaper and that mostly depends on the planning permission being cheaper.
    So instead of guaranteeing loans and fuelling house prices achieve the same result of people being able to buy a house by lowering the price incurred by planning, almost everyone wins in that way.

  7. Groudhog day – help people buy something that they can’t really afford unless everything goes OK and hope prices rise again so everyone feels good.

    Pay attention at the back. This is a new paradigm, the end of boom and bust.

    Then wait for the inevitable.

    Which will be after the next election when all those new owners have got their shiny new hoes and have voted a Tory majority.

    As a baby boomer I’ve lived through at least 5 housing bubbles yet my generation keeps on falling for the same old shit.

  8. The key point is the “new build” requirement: it’s not really intended to help home owning, it’s a scheme to make work for builders. It’s still an incompetent idea. It should make the 40% taxpayers even happier about their taxes increasing to subsidise more such nonsense.

  9. What I especially like is the notion that this will somehow mean that people who otherwise cannot afford a mortgage will somehow be able to get one. Of course the key issue is that the “cannot afford” a mortgage.

    The US has a name for these type of borrowers, I think the term is “sub-prime”, now why does that sound familiar?

  10. I am a free marketer and believe the govt should never distort the markets in this way.
    But yesterday my wife and I went to look at some properties to buy and we were frightened off by the amount of deposit we were told we needed by the developers (around £50k in total for £300k house incl stamp duty).

    My reaction this morning thus made me realise how easily the govt can get turkeys to vote for xmas if the incentives are lined up properly.

    I’m totally convinced that this is a sily idea and it goes against everything I believe about how the economy ought to work yet I assure you I will be at the front of the queue for this scheme.

    I have never missed a rent payment in more than 7 years and I earn a fairly decent amount.
    But raising that amount of money as a deposit ( we are under halfway there) is just very difficult considering that I am paying my way through an MBA while working at the same time.

    Yeah it’s wrong for the govt to do this but I have been bought and I will take up the offer.
    I have also by extension relinquished my right to criticise people who take up the offer (except of course I miss out on it).

    Such is the way of the world

  11. @F Double: ‘I am a free marketer and believe the govt should never distort the markets in this way…
    I’m totally convinced that this is a sily idea and it goes against everything I believe about how the economy ought to work yet I assure you I will be at the front of the queue for this scheme.’

    I don’t blame you for taking this position, because to be the only free marketeer, insisting on sticking to his principles in a rigged market, is to send yourself madc with rage and frustration.
    My brother is in the same position and cannot dream of affording the kind of house I own, partly (and perhaps mostly) as a result of his being born 15 years after I was.
    I really do despair; short of hanging about 20 MPs on Westminster Bridge each day until they agree to stop fucking up our lives, I can’t see how things will change until there’s a revolution and a communist or mad right wing dictatorship takes over.
    Sadly, I really do think I will see one or the other of those in my lifetime.

  12. Just heard a defence of it on the radio. Apparently this is a good idea because interest rates are low and the only barrier is the high deposit.

    I really don’t know why I keep inflicting myself to such idiocy by turning the radio on in the first place.

  13. Homebuy – the next big financial scandal; give it a few years. I really feel for people who are unable to afford to save the deposit they need to buy their own home. The government it seems don’t care. For years lenders have required high deposits for new build homes – the only reason for this is that they depreciate immediately you buy them. So, the 5% deposit (or more) is likely to disappear as soon as Homebuy-ers move into their new home. Add to this the fact they won’t be able to re-mortgage to get a better rate and the prospect of interest rate rises, we are going to see a lot of repossessions and people being unable to move house. Guarantee? That’s a laugh – it doesn’t protect buyers in any shape or form. It’s an indemnity scheme which lenders will claim on should a buyer default and they have to sell the property. If this is at a loss of, say £30k, the lender will claim on the indemnity policy. However, the poor Homebuy-er will then be pursued for the £30k. Mr Cameron what are you thinking of – a disasterous scheme.

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