PROPPING UP PROPERTY PRICES IS NOT GOOD.

Another year, another budget. Although the Chancellor of the Exchequer has little room for manoeuvre, due to the ongoing crisis in the Euro zone; plus not starting soon enough, ie: 2010, to clear up the mess left by the previous Labour Regime. Unfortunately, acting like a socialist will only exacerbate Britain's financial woes. Chancellor Osborne has offered to assist house buyers with loans to top up their deposits for a mortgage, in many cases by as much as 15/20%, a level set by commercial lenders to resist property inflation. We could say this will be from taxpayer GB, but in actual fact it will be a tax bill later, as it will be shunted down the line, adding to the already astronomical National Debt of £5trillion. This is beginning to smack of Fannie Mae (1938) and Freddie Mac (1970), the two loan agencies, both created in the USA to assist house purchase. All appeared to be going well until the 1990's: Enter Clinton, stage left. This is when the abuse started; encouraged by the President, money was being loaned with little hope of repayment, hence the credit crisis which refuses to go away.

So what is the purpose of this funding at the behest of more debt; to find work for builders and to endeavour to keep the property market at an inflated level, the economics of a moron. The market has to be allowed to float and find its own level. We could add, that much of this activity will take place on 'green belt' land, advocated by a government that informs us that it is the most 'green' administration ever.

CHASING THE DEBT IS FOR FOOLS.