Thursday, March 10, 2011

Baby steps to catastrophe?

Politicians as a breed want to be liked. Bankers as a breed want to make money. Simple really.

But politicians being nice is what brought about the whole sub-prime disastor and the financial crisis from whose grasp we are not even close to escaping. The whole story of the Community Reinvestment Act makes salutory reading. And we would be wise to understand that being nice can have some pretty disasterous consequences down the line. So this little piece of news is deeply worrying.
A survey commissioned by the specialist insurer and carried out by ComRes reveals 75% of MPs think people with a stable income but who are unable to put up a deposit of 10-20% should have access to mortgage finance provided repayments are affordable.

Furthermore, 83% of those asked stated their constituents need more support in getting on the housing ladder, a figure that rises to 100% for MPs with constituencies in London.
Baby steps to catastrophe. It may be cliched but, this looks like one of the paving stones on the road to hell.

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