What a good idea from the London coalition government. As house prices finally start to fall they decide to re inflate the bubble with taxpayers money. £12bn is the latest tranche of money that will be given away in order to re inflate the housing market. 15% of the cost of a house will be handed over by taxpayers.
It seems that house prices are too high and the deposits required to own a home are beyond the reach of home buyers. In a proper 'capitalist system' what would happen is that house prices would fall to meet the market price. But homeowners have been sitting tight, refusing to lower their house price and waiting to see who would blink first. The government blinked first and Danny Alexander ( in photo above visiting a food bank that feeds the starving ) has been doing the rounds of tv studios telling us all what a great idea the new £12Bn giveaway is. It's just a cynical ploy to get them past the next election with a fake 'feel good factor' in the country. It's often called 'kicking the can down the road'. Putting off the big decisions for another day. By which time the politicians will have retired to a cushy job in Brussels, are touring the world doing speeches or are sitting in the House of Lords snoozing until it's time for dinner.
There's been no recovery since the 'great crash' of 2008. Our debt is rising by £120Bn a year and is now at over £1trillion. Our zombie banks are still zombie banks despite receiving nearly £1trillion in bail outs. The banksters still enjoy huge pay and bonuses and travel the world first class with hospitality wherever they go. Retired savers who once lived on their 5% interest are getting no interest and are eating into their capital. Eventually everyone will be in debt servitude and the top 1% will have it all. Anyone stepping onto the housing ladder and buying their first house ( outside of London ) is bonkers. Interest rates will have to rise soon and they will be ruined.