Emeritus Prof Christopher May on Nostr: So in a #housingcrisis partly patterned by asset price #inflation (we need to stop ...
So in a #housingcrisis partly patterned by asset price #inflation (we need to stop calling rising house prices 'growth'), #JeremyHunt's new wheeze is the 99% #mortgage.
So two serious problems here;
a) won't take much to tip people into negative equity (which is fine as long as they don't need to sell);
b) part of any market's inflationary drive is the extent of levering of funds available to stoke demand;
highly levered mortgages will be inflationary & so add to, not reduce, the problem!
So two serious problems here;
a) won't take much to tip people into negative equity (which is fine as long as they don't need to sell);
b) part of any market's inflationary drive is the extent of levering of funds available to stoke demand;
highly levered mortgages will be inflationary & so add to, not reduce, the problem!