“He needs a basic lesson in economics”

John Rentoul
cameron 300x225 “He needs a basic lesson in economics”

(Getty Images)

I have a comment on the Prime Ministerial pot calling the Opposition kettle economically illiterate over on Independent Voices. Help to Buy is a terrible scheme for creating credit, recycling money in the housing market to create grateful winners who might vote Conservative and disguised losers who don’t know they are losing.

As a footnote, yesterday’s No 10 news release reveals that the scheme, brought forward with such fanfare, doesn’t actually start until January. That is when the Government guarantee starts. The lenders presumably underwrite the risk if anyone completes before then:

Lenders can start offering the mortgages now, and they will be guaranteed by the government from January 2014. As it usually takes a few months for borrowers to go through the mortgage completion process, this delay is not a problem for lenders. If borrowers do complete before January their mortgage will be included in the scheme.

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  • JohnJustice

    Another aspect of the disguised losers who don’t know they are losing is that undercapitalised home seekers are being encouraged to buy property when interest rates are at their lowest. This cannot last for much longer which means that, after the election of course, they will be saddled with rising mortgage repayment costs (possibly quite steep rises) which they may be ill- equipped to meet.

    In other words it’s 2008 all over again.

  • porkfright

    It would be nice if someone apart from Vince had ever shown what they learned during their ‘A’ level economics lessons during the past ten years.

  • Pacificweather

    A new concept of the deserving and undeserving poor. The Victorian romance of it all touches my heart.

  • Pacificweather

    You mean they may have to cancel their mobile phone and Sky TV contracts, sell the Audi and get a second job. Pigs might fly first.

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