Friday, November 19, 2010
Relax! Mortgage rates are at record lows!
This time it's Lord Young, who recklessly suggested that in the middle of the worst recession since 1931, in fact some people have 'never had it so good'. This, because if you still have a job and have a variable rate mortgage, your disposable income has gone up. This of course is true. In hard times, some people are better off. In theory I'm one of them. Never mind that the pile of bricks which secures my mortgage is worth rather less than I paid for it - I am indeed paying less for my mortgage than I was before the world financial system collapsed. Silver linings, eh?
Of course Lord Young is getting on a bit - in fact I wasn't even sure to be begin with that it was the same Lord Young Mrs Thatcher famously praised for 'bringing her solutions when others only brought her problems'. With rusty political reflexes he may have just made a misguided remark without realizing the likely consequences.
This may sound like 'old-fashioned class envy', but I'm convinced that a government full of very rich men is not well placed to understand the society they are trying to govern. I predict disaster.