Friday, 9 January 2009

Brown should start to buy some houses

I just love the lunacy that this financial crisis has brought forth. Here we have two "economists" telling Brown to buy up homes on the verge of repossession. What is more, it is only going to cost ₤50 billion, which as we know, is chump change for the tax payer.

Was I imagining it, but two years ago, the UK had a housing shortage. So rather than build much needed new houses, the government will simply buy up existing ones. How will that help? Oh yes, it will keep the market from correcting and ensuring that housing remains unaffordable for the vast majority of first time buyers.

Truly, we live in an age where no idea is too stupid so long as the taxpayer is paying for it.

Do you think these two jokers would be so quick to put this idea forward if it were their own money that was put on the line?

Jan. 9 (Bloomberg) -- Prime Minister Gordon Brown should buy homes on the verge of repossession to add money to the British economy and save families from being thrown out onto the street, two former Bank of England economists said.

The plan would cost about 50 billion pounds ($76 billion) over five years, Fathom Financial Consulting economists Shamik Dhar and Danny Gabay said in a report today. The program would also provide a new economic policy tool as the central bank’s interest rate approaches zero.


Anonymous said...

When will it end?
When will it end?

Mark Wadsworth said...

Anon, in madness?

Mark Wadsworth said...

Oops, sorry, I thought you asked "where".

Anonymous said...

Dear Alice,

Please post this house price list:


electro-kevin said...
This comment has been removed by the author.
electro-kevin said...

Please don't let the Tories win the next election

Please don't let the Tories win the next election

Please don't let the Tories win ...

Neither party deserves office. But I want Labour standing red handed when this wheel comes off.

Mark Wadsworth said...

E-K, the Tories threw the last election because they must have guessed that this would happen, The Goblin King will hang until the very last moment, May 2010 or whenever, by then the Winter of Discontent will look like [something mildly unpleasant but nothing terrible, like stubbing your big toe].

I doubt the Tories will throw the next election as well.

Tim said...

I have always been very sceptical about the "housing shortage". There are I think around 1 million empty homes in the uk (and here in Ipswich tens of thousands more half built). It was always a scam put about by the building industry to try to open up green field sites for quick profit.

The Government should certainly buy existing homes - it is by far the most effective way of making housing affordable (by renting them out at an affordable rent).

Far better this than pay billions to the tax-exempt plutocracy.

Alice Cook said...


I would like to chart that data but it is a jpeg file and it can't be put into an excel file.


electro-kevin said...

Mark - Phew ! thanks for allaying our fears.

Just a little bump and it'll all be over, folks.

I don't believe the Tories deliberately 'throw' ANY election btw.