QUOTE (Financial Planner @ Dec 5 2007, 11:52 AM)

Enjoy!
Make sure you give it to them between the teeth.
The calls for interest rate cuts are laughable. The idea that you can create growth in an economy based on ever increasing debt - secured against ever increasing house prices is plainly stupid. Yet many so-called economists are calling for this. The only solution they can see to the credit crunch - caused by the endless re-parcelling of debt - is to create more debt.
Why are people so happy when their house price goes up? It means two things.
1) They'll need a bigger mortgage to move up the ladder.
2) Their children will one day have to carry a huge millstone of mortgage debt all their lives.
The growth of BTL has been unfair and discriminates against young people - many of them already suffering with debts from university. Why should an existing property owner be able to leverage the equity in their property to buy another one - when young FTBs have to scrimp and scrape to save a deposit? It is not fair and is having huge social consequences.
High house prices mean we have a generation priced out of home ownership and priced out of having children. Is this good for society?
What are young people supposed to do? Move from one Assured Shorthold Tenancy to another throughout their lives. If young people are going to be priced out of home ownership - legislation needs to be brought forward to create long term tenancies.
Why should someone pay TWICE as much for a house as someone who bought it 5 years ago? Just because we had one-off 50 year low interest rates after 9/11. Interest rates won't necessarily stay low forever.
The government are to blame for this mess. They've stood by complicit while personal debt has more than doubled to 1.34 trillion over the last 10 years. Gordon Brown said he would not preside over housing boom and bust - and did nothing but milk the rising market for all the tax it was worth.
Give it to them straight.