Politicians should KNOW that artificial stimulus of the Property market can only end in disaster. However they seem drawn to it as a piece of social engineering despite this knowledge and it is remarkable that they cannot learn from the past!
Sir Mervyn King has sounded the alarm over the Chancellor’s home-buying plan, suggesting it could trigger a US-style economic crash. The outgoing Bank of England governor said George Osborne’s Help to Buy scheme was ‘too close for comfort’ and could damage the mortgage market if allowed to continue for too long. He urged ministers to get back to a ‘healthy’ system of competing high street lenders rather than one in which the Government guarantees home loans to get first-time buyers on the property ladder.
For once, King is right. Osborne is showing unbelievable stupidity and his “Help to Buy” scheme will cause great misery in times ahead.