And another...

[mirrorshard]

http://society.guardian.co.uk/communities/news/0,16293,1590463,00.html

The government has pledged to create a million more homeowners in this parliament as part of its promotion of asset-owning as way out state dependency.

Our government appears to be going enthusiastically down the Marie Antoinette route. The problem with poverty is not, I can assure you, a lack of things to buy.

Comments

[vashti.livejournal.com]

Or the Thatcher route. What's the betting a good proportion of these new million people up to their necks in debt with 100% mortgages are going to be buying some of the country's desperately needed council houses?

[mirrorshard.livejournal.com]

Mortgages are a good thing, remember. They're private-sector finance enabling asset ownership and independence from the state sector.

[hellison.livejournal.com]

Until of course interest rates go up/you lose your job/have kids/insert just about anything here, default on the mortgage and have nowhere to go because there aren't enough council houses left and you're hugely in debt. Yay.

[vashti.livejournal.com]

Or removing responsibility from the state sector.

Wait for a lot of these people to find they *can't pay* their mortgages, then hello 1992, hello handwringing, hello "omg look homeless families are bad PR".

[mirrorshard.livejournal.com]

There will almost certainly be an attractive range of refinancing deals on offer from the thriving private sector at very reasonable prices.

And after all, the important thing is that you have that asset that you own, right... even if it's both legally and financially encumbered (meaning that you couldn't do anything with it but live in it if you wanted to), almost certainly worth less than your debts amount to, and constantly at risk.

[vashti.livejournal.com]

God, I'm depressed now.