The British goverment wants to waste YET more of Mega's money

[Mega]

http://www.telegraph.co.uk/property/...-launched.html

The House price ponzi scam is collasping, they tried EVERYTHING to get the bubble not to burst. Zero rates & not repo-ing those whom would rather not bother to pay the mortage they couldn't afford to start with.

"They" know the game is up & if (when) the bubble burst its game over & a new load of crash lands on them. Thus we have this Scam dropped on us..............

The only good news is banks themselves are now despitly short of money & rates ARE getting rased regardless of BOE base rates......i think just after the games, we see an autum bloodbath...
Mike

[Starving Steve]

Re: The British goverment wants to waste YET more of Mega's money

The baby-boom generation, born 1946- 1966, give or take, and with a peak in 1959--- at least that is the way the demographics look in Canada--- is now going to exit the housing market. Their homes are going to go up for sale. .... Oh, what a fright to the Bank of England, the Bank of Canada, and the U.S. Federal Reserve Bank!

Now, barring Quantitative Easing ( massive money-printing also known as Q.E. that Ben Bernanke and his friends running the other central banks are famous for ) the price of homes should decline--- simply because who is going to buy the homes? How can a home, luxurious or not, fetch half-a-million dollars, beaver bucks or pound sterling? And to think to-day, many homes in places such as San Francisco or London, Vancouver or New York City are fetching one-million or more.

Yes, who is going to pay the outrageous rents of apartments, but how many senior citizens can afford to live in homes any longer, not to mention do the maintenance, pay the property taxation, the monthly commons-fees, and the utilities on such? And in time, the baby-boomers will die or become infirm, so who is going to buy the surplus of homes on the market?

Oh yes, there will be immigration, but how many immigrants will come with bundles of cash, not to mention fluency in English, not to mention jobs awaiting?

And then, there is one more small detail: How many banks would be falling all over themselves to lend on homes, especially after they have been burnt with defaults on past mortgages from baby-boomers. And then, baby-boomer income will decline in future years, so where is the money going to come from the prop-up the real estate market?

No money, no income, no buyers, more sellers and a high cost of doing nothing and remaining in the home--- a lovely situation, indeed! And each day, the baby-boomers will just get older and more infirm.

Imagine what a back-up in interest rates might do to this picture? Imagine hungry local governments increasing taxes. Imagine the utility companies raising rates, especially in the wake of their insane folly into green energy solutions...

Already in California, we are seeing monthly declines in the price of homes, by about 0.2% per month, for several months now, back-to-back. And this is on top of the major (like 30%) decline in home prices from 2008 to 2011.

And then we have the selfish bunch in the environmental movement: They want a floor under the price of gasoline in America of $4.50 per U.S. gallon. So what might $5 per gallon gasoline do to the price of homes, especially homes in the suburbs and exurbs? And add to this, the arrogance of OPEC and the need for state governments to raise gasoline taxes.

Then add to this potent mix the need for municipal governments to raise money through municipal bonds, so municipal bond interest rates might increase. That would encourage banks to buy municipal bonds and NOT TO LEND FOR MORTGAGES.

For more information on this outrageous proposal to put a $4.50 per U.S. gallon floor under gasoline prices, read Thomas Friedman's book, Hot, Flat and Crowded.