{"id":40334,"date":"2013-06-09T14:27:23","date_gmt":"2013-06-09T13:27:23","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/breaking-news\/osbornes-help-to-buy-scheme-death-knell-for-uk-property-market\/40334\/"},"modified":"2013-06-09T14:27:23","modified_gmt":"2013-06-09T13:27:23","slug":"osbornes-help-to-buy-scheme-death-knell-for-uk-property-market","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/breaking-news\/osbornes-help-to-buy-scheme-death-knell-for-uk-property-market\/","title":{"rendered":"Osborne\u2019s \u2018help to buy\u2019 scheme death knell for UK property market"},"content":{"rendered":"
\n\t\t\t\t\t<!–Max Keiser<\/a>–><\/p>\n

Max Keiser, the host of RT’s \u2018Keiser Report,\u2019 is a former stockbroker, the inventor of virtual specialist technology and co-founder of the Hollywood Stock Exchange.<\/p>\n<\/p><\/div>\n

The UK government has made a critical mistake: George Osborne\u2019s \u2018help to buy\u2019 scheme is off to a roaring start with money pouring into house-buying, including many first-time buyers… but there’s a big problem.<\/p>\n

\n The demand for houses, both domestic and foreign, shows there is
\n demand for a government guaranteed investment program, but why
\n houses? Yes, there is a housing shortage in Britain and yes, many
\n can\u2019t afford to \u2018get on the property ladder,\u2019 but the primary
\n reason for this is that wages in Britain have not grown over the
\n past decade \u2014 in large part because of the last housing bubble
\n and crash funded with government-gifted money to speculators
\n leading up to the last crash \u2014 and many Britons who can\u2019t afford
\n houses \u2014 also can\u2019t afford education, decent (i.e., private)
\n medical services, enough energy to heat their homes and; in a
\n growing number of cases, food.\n <\/p>\n

In other words, most Britons can’t afford energy, food, education
\n and transportation because the way the economy is managed is
\n fundamentally flawed and the answer is not to inflate a new
\n housing bubble with a government-guaranteed scheme.\n <\/p>\n

But the British hate these facts, because of the psychological
\n hold houses have on their psyche. Houses are to the British
\n economy what Cheese and wine are to the French economy: A
\n protected, government-sponsored racket that distorts and cripples
\n the economy as a whole but makes people feel good while the
\n ship’s going down. \u00a0\n <\/p>\n

Britain\u2019s housing bubble popped along with the outrageous 120
\n percent mortgage schemes of former banks like Bradford &
\n Bingley and Northern Rock, and yet house prices in Britain, down
\n approximately 40 percent in some locations, have not fallen
\n enough to reflect the excesses (read: criminality) in the banking
\n system that led up to the 2008 crash. The only way to rebalance
\n supply and demand in the housing market is to let prices find
\n their own point of equilibrium where demand catches up to supply.
\n Government interference never works, and it won’t work this time.\n <\/p>\n

If anything, this is an opportunity missed. This was Britain\u2019s
\n moment to mobilize government resources to diversify away from
\n house speculation and steer the economy into new areas that would
\n create new, dynamic, high paying jobs. But instead of using the
\n government\u2019s ability to guarantee investment in, let\u2019s say,
\n jumpstarting high-tech infrastructure that would support a
\n US-style technology boomlet, the government \u2014 presumably being
\n coerced by the very same lobbying forces that got them into
\n trouble in the first place \u2014 has succumbed to giving the very
\n same speculating, non-job-creating, economically destructive
\n group of corrupt, market-rigging banksters another huge
\n taxpayer-funded gift.\n <\/p>\n

Instead of high-reward jobs that would add genuine, sustainable
\n GDP growth to Britain, what the Chancellor has delivered is a
\n ticking time bomb. Based on recent trends in housing and the
\n interest rate sensitive bond market, I feel it\u2019s reasonable to
\n predict that within 36 months Britain\u2019s housing market will crash
\n again \u2014 even more spectacularly than it did in 2008.\n <\/p>\n

Osborne must know this in his bones, so the question is why would
\n he proceed with such a reckless program. The answer is, look at
\n various global gatherings of the top bankers and speculators in
\n the world: Davos, Bilderberg, the IMF, World Bank, G20, etc. and
\n you see a pattern. Osborne is simply gifting these racketeers
\n another huge taxpayer-funded gift as a way to set himself up in
\n his role post-no. 11 Downing St., where he can join that other
\n British war profiteer and international man of deceit Tony Blair
\n in ransacking the world for personal gain.\n <\/p>\n

For buyers of homes in Britain, if you want to get an advance
\n peek at your fate gaze across the channel to Ireland, where
\n \u2018first-time home buyers\u2019 circa 2006 are still crushed under the
\n weight of \u2018negative equity\u2019 (the mortgage is greater than the
\n value of the house). This is what awaits thousands of happy \u2018help
\n to buy\u2019 recipients of George Osborne\u2019s gift to speculators who,
\n by the way, when you are fighting to stave off bankruptcy and
\n ruin in 3 years time will be happily lecturing for \u00a3100,000 a pop
\n at various global confabs on the topic of how best to bilk the
\n public out of billions to feather one\u2019s own nest like the
\n horrendous and dangerous ‘help to buy’ scheme.
\n <\/p>\n

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.<\/p>\n

<\/p>\n

This article originally appeared on: RT<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

<!–Max Keiser–> Max Keiser, the host of RT’s \u2018Keiser Report,\u2019 is a former stockbroker, the inventor of virtual specialist technology and co-founder of the Hollywood Stock Exchange. The UK government has made a critical mistake: George Osborne\u2019s \u2018help to buy\u2019 scheme is off to a roaring start with money pouring into house-buying, including many first-time […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[487],"tags":[],"class_list":{"0":"post-40334","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-breaking-news"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/40334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=40334"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/40334\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=40334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=40334"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=40334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}