Since the Chancellor announced government would put taxpayers money at risk to boost the housing market there have been a number of critics. One economic expert even called the plan “moronic”. Recently another much more influential commentator had the following to say about such government meddling:-
“We’ve got to turn the page on this kind of bubble and bust mentality that helped to create this mess in the first place. We’ve got to build a housing system that is durable and fair and rewards responsibility for generations to come”. Reflecting upon the causes of the bubble he went on to blame “recklessness” on the part of lenders and borrowers and criticised big financial institutions that knew if it all went pear shaped the tax payer would ride to the rescue and bail them out. The commentator? US President Barack Obama who was urging a revamp of the housing market and a winding down of government sponsored lenders Fannie Mae and Freddie Mac.