Are the Lunatics running the Asylum?

Cactus Kate: Lunatics Running The Asylum

Cactus Kate seems to think so.
She analyses Labour's bizarre Housing strategy desperate bid to stay in power.

[quote]Policy A: The taxpayer is now becoming a party to (as defined in the US) subprime lending and fronts with 30% of the purchase price of a home to low income and potential squatters. The pay-back for the taxpayer is that when the home is sold, they get their 30% back and keep 30% of the proceeds. This is the only cash flow for the ?investment?. No interest needed to be paid for this 30 % share. This long-awaited policy is to be rolled out in July 2008.

Policy B:
A raft of ?housing affordability? measures are introduced such as increasing housing stocks (although reports `state that housing stocks need to increase a massive 80% to cope with population growth) and freeing up land. All designed to make houses more affordable ie. to REDUCE the price of homes. This will have a longer time lag obviously while property is built and land is freed up.

So the peace of mind collateral (security) for Policy A for the taxpayer is the capital return and 30% profit on future sale.

But Policy B is purposively designed to actually reduce the return as profit on Policy A.

Successful Policy B will REDUCE the future proceeds from Policy A.

Successful Policy B will REDUCE the value of the equity private taxpayer has themselves and make taxpayers net wealth decline.

And announced on the SAME DAY.[/quote]

Sub-Prime lender of last resort Government? Wordy but apt.

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