Monday, 7 October 2013

Right to buy

I have mentioned this before

but the government is still going ahead with it, not only that but David Cameron has brought the scheme forward by three months and the banks are not ready apparently.

What I did not mention last time which is the message I am trying to get across is, going back to the bad old days of 2008 and the economic crisis, Basel III has put pressures on banks to keep "more" capital on the balance sheet, hence business moaning about not getting at funding which they need.

Now the government has realised that ‘would be’ home owners are snookered by this action too and so have retracted on the ‘out of fashion’ 90% mortgages and is in fact recommending them. This is quite simply a cynical ploy to get votes for 2015 and cannot possibly help the economy in either the short term or the long term.

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