one of he biggest problems with debt, is the fact that home owners can access equity, to easily and spend it on rubbish.

A wise system would have been to either prevent this buy. car or holiday and put it on the homeloan, or, at the very least charge higher rates for this facility.

We all know that the growth experienced from 2000 to 06 was unsustainable, yet, lenders stll lent on the value even though nobody really knew what the real value of their home was.

One should never be allowed to secure depriciating assetts ( toys) against bricks and mortar.

Another idear would be to allow home owners to reduce debt on thier place of residence up to 10% annually with before tax dollars, but only if they dont hold an investment property, or have a line of credit on thei home.

Investors, such as myself get to many breaks in my view, while home buyers dont get enough breaks.

But, you cant fix one problem without plugging the holes first.

Rechtub while it is true, some get in to far too much debt.
What do you want who to do to stop it?
At least our laws are better than Americas, we have bankruptcy laws and if you have the money you must repay it, or as much as you can.
Americans walked away free, from homes they lost.
So who controls the unwise, not government intervention surely.
Banks and lenders while the assets are appreciating will lend.
IF/WHEN the crash comes it will be many headed.
Home owners will fail banks/lenders at first struggle after maybe fail.
Speculators /investors next.
Then? a landslide.
Shortage of houses multiplied by profits in investing in them drive the markets.
But remove one stone and watch the slide.
Government intervenes must be well thought out before any is taken.
After all any intervention will have affects.
Do we make our own government cars to cut the prices.
Would we /should we re enter the airline market to save on air fares.

Question:
Saw an item on the BBC a few minutes ago.
Three US people had been unemployed for some time.
One woman said she lost her job, and has spent all her savings and the
time of the dole has run out and it has ended.
She has no money and no income.
She said she cannot pay the rent or buy food.

How are people supposed to survive there ?
They have food stamps which I believe you take to supermarkets and get
food. I saw something that said 1/3 of US people are food stamp dependant.
Doesn't sound too good.

No interest, no deposit, no repayments, nothing to pay until 2015!

*25% backdated interest accrues after one missed repayment.

Freedom of choice, is what we got! Freedom from choice, is what we want!

The world is stacked against the stupid.

Only stupid people are breeding.

Happiness is just a chemical.

Anyone seen that movie Idiocracy?

picked the wrong time to be looking up at the night
popular belief came down,
destroyed his house and claimed his sight
forwards in lockstop barely able to draw breath
yeah curiosity killed the cat,
he's buried alongside every great mind we never had
i'm sorry i know it's only rock and roll
but i've felt this twinge in the back of my mind
you do not have a monopoly on the truth
believe everything you read
and in twenty years we'll put you behind glass
for all the people to come see
they'll be rolling in the aisles
whatever you want
whatever it is you haven't got
sentimental
knowing when you get on that road
i've got no idea where you're going
ooh..
before you jump you better think twice
no angel's gonna appear to offer you advice
whatever you want
whatever appeals to whatever it is you haven't got
sentimental
knowing
sentimental
knowing when you get on that road
i've got no idea where you're going

belly i have long thought that it is better to reward people for effort rather than just punish them for bad.

as an example, just imagine if you were an A rated driver, without an infingement for say two years. Then, as a reward you would receive a discount card that would give you a discount when you pirchase petrol.

So, if you reward people for reducing debt, then they are less likely to borrow for meaningless items, using the equity in their homes.

A car purchased for say 40 K, when th money is added to thei homeloan, the real price of that car can be double what thy paid, furthermore, with a car loan, at least they ar reducing debt, as with a line of credit, they need only service the debt which allows them to go further into debt.

A higher interest rate for non approved purchases would also be a good move.

Bazz good morning, spend some time researching that subject.
It has always been so in America, they invented the free food lines.
And mate, be aware, like it or not our system, never change it, has been in part Socialism, by demand!
Of both sides of our politics.
Hoully , you seem to be enjoying what ever it is, no arguments from me but any answers from you?
Rechtub.
I do not want to offend you, you flip flop.
From an anti worker to Socialism for small business, to low tax, I just can not follow.
And mate I can not under stand just what you want to do about the coming explosion of the housing Bubble.
Lets separate rentals, government can influence rebuttal property's, actually should.
But not by saying the answer to every issue is spending our money.
TAX lets give further tax breaks for fair rental owners low income rental owners so it pays THEM to build more.
Back to home owners/investors/speculators.
Yes even international investors buy our homes for investment.
Instead of shares or other investments.
Should we intervene? drop the prices by becoming a government investor.
Well maybe but with thought and planning.
Make building of smaller cheaper homes worth while, but do not put tax payers funds at risk.
The country must not suffer more than it has to in this growing threat.