Analysis: Immediate gains to homeowners. Ongoing costs to the government (those interest-free loans) and long-term, long-tail costs to the government (those loan guarantees).
Yah. From the article:
One has to wonder whether a scheme encouraging financial companies to lend and consumers to borrow is the brightest thing to do in an economy with £1.26 trillion (or 80% of GDP) mortgage debt outstanding. Especially as it is designed to make an already expensive asset even more expensive, which could lead to financial instability if the economy wobbles and ultimately cost the taxpayer big time.
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Date: 2013-07-11 07:58 pm (UTC)Yah. From the article: