The 20% scheme would work as a gov. loan. They won't meet the repayments and
will start to falter gradually beyond the next election, the housing market
will be propped up (if anything rising again) so that the owners will sell
down and the government will get their money back. Giving them 6 months to a
year to think things over on a trade down from their beloved house, gives
them time to get over it. It won't be seen a soft touch socialist measure if
it is made clear that it is a special one off. Along with the regulation
changes chaos is staved off. All over by mid-term next administration.
Remember the Saving and Loans crisis or the Asian Contagion ten years ago?
It's not the end of the world, just a correction.
The government in a civilized society upholds decent behaviour between us so
we can trade freely as possible. They screwed up on their watch, it is the
least they can do to compensate in the most cost effective manner. It won't
be seen as bailing out the reckless but a short term contract and a drink at
the last chance saloon for the reckless. Meanwhile the CEO of gov. and
advisors go and if there is clear evidence of reckless intent in gov. and/or
banks, prosecute them for bringing the financial system into peril.
Somebody's got to walk the plank - even people lying about their means when
getting a mortgage.
The compensation is much the same as the criminal injuries payout system.
You walk down the street and if you get assaulted you get a payout from the
government for failing to protect you (especially if it some known nut who
escaped from Broadmoor) the assailant is banged up and made to pay you
compensation too.
Free market reforms have had a wonderful effect in Britain since the 1980s.
It is a vibrant cosmopolitan place and still could get *a lot* better. Many
own their homes, have cars, much foreign travel (it broadens the mind) and
many people visit. This has happened or is happening in other European
countries, Russia, China and parts of the third world. Globalisation of
capital has been a good thing.
I'm just old enough to remember my mother having to wait 9 months to get
some massive, crappy, Bakelite second phone (only an extension) from the
Post Office or the crappy British Leyland cars.
The old guard and new feudalists want to return us to, dare I say it, state
housing (one size fits all), cars as luxury items (global warming), no
foreign travel (global warming), composting allotment owning vegans
(methane, global warming), lights out at nine pm (global warming),
isolationist, free thought limited, little surfs living short miserable
lives.
The system is a bit broke. Well we fix it. It's not the end of the world. Be
rational.
