David Cameron: 95 per cent mortgages will make ‘dream of home ownership a reality’
Tens of thousands of home buyers will today be offered 95 per cent mortgages by state-owned banks in a move which David Cameron says will make the “dream of home ownership a reality”.
Or at least, didn’t the Americans try this? Fannie, Freddie, FHA and so on? And didn’t it all fall down in the most dreadful mess?
I’m sure I’ve heard something about that somewhere along the way.
We are looking disaster in the face. A British version of Fannie Mae and Freddie Mac must be created now. Legislation to create a Gordon Mac should be introduced before the summer recess. It should be operating by the end of September. Nor is this just an economic gambit. It will be opposed by the Conservatives as an ‘anti-business’ public intervention. They are wrong. The only way out of this crisis is to embrace the politics of public purpose rooted in the economics of Keynes. Mr Brown has an opportunity to restore the housing market, the economy and his political fortunes. He must act.
And if you’re going to prove willing to try out iconoclastic ideas could you please make sure they’re not proposals from Willy fucking Hutton?