thursday trading, page-61

Slikk

You can't see a problem!

OK, so I buy a house with a "honeymoon" rate of 2% for the first 5 years, where the lender is losing money, knowing he will make it up when the rate goes up to 6%, only to have the 2% fixed for a further 5 years by the government.

So the lender losses money, and if the borrower couldn't pay the true rate now how will he pay it in another 5 years. He must have always known he couldn't pay it.

If the government makes up the difference then the lender is encouraged to make stupid arrangements in the future because if there is a problem then government will help him out and help the buyer too

The cost is covered by the taxpayer probably through debt, even though the country is burdened with debt so you and your kids pay for it even though you did the prudent thing and bought a smaller house or rented because you couldn't afford more.

Yep, nothing wrong with that.

I think I'll go and get that big plasma TV because there is nothing to pay for the first 12 months. Maybe they will bail me out next year or I guess I will have to give it back eventually.