5 2 mins 13 yrs

I read that dead man walking Gordon Brown has indicated he will seek to force banks to stop lending at 100% for would be mortgages “to encourage more responsibility”.

What a load of tripe.

For starters, isn’t this the same Gordon Brown who has forced interest rates down to virtually zero in a madcap attempt to prop up the necessarily deflated property market? How irresponsible is it to virtually wipe out the motive to save whilst rewarding the feckless borrowers? Also, haven’t we already seen that the MORE government interfers in the financial markets the more problems it creates? Finally, surely the decisions for lending must lie with private banks? If they call it wrong – let them sink. If they call it right – everyone wins. Banks ran themselves pretty well before the Gordon Brown fueled property boom which created the credit bubble that has now burst.  This problem didn’t start in America – it started in Downing Street.

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5 thoughts on “100% DISCONTINUED

  1. Is it too late for you to apply for the post of Chancellor of the Exchequer? I may not know much about economics, but I know what I like, and your post rings the lemons. Of course banks should be allowed to fail. That’s how markets work. And what’s all this special pleading – often by people who spout nonsense about the environment – for the car industry? Let them all go and find jobs in theme parks like the miners had to. Your blog is a good ‘un. Keep up the sterling [geddit?] work.
    Mark Brentano

  2. Gordon Brown is to prevent banks and building societies offering 100 per cent mortgages in an attempt to usher in a new era of "responsible lending".

    Reports the Telegraph.

    What? It was his monetary policy that flooded the markets with cheap money in the first place. Banks couldn;t move quick enough to pass it on!

    Chutzpah, thy name is one-eyed Scottish idiot.

    Ah well, it’s the closest we’ll get to an admission that his policies have been ruinous.

  3. Finally, surely the decisions for lending must lie with private banks?

    Not when they are 100% state-owned (Northern Crock), or 70% (RBS), or have been saved from collapse by the injection of state funds (most of the rest).

  4. 100% lending on mortgages has dried up here. It’s one practice, however, that drove speculation in houses. Good riddince to bad rubbish.

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