We bought our first house 4yrs ago, choosing a cheaper one that needed doing up in a bad area, to try and minimise our risk if prices fell. I can't believe that the government is now going to help out all those people that just maxed out on the new builds. Wish we'd thrown caution to the wind now.

Lynn, Newcastle,

"[Mr Darling] wants to do everything he can to help people get on the property ladder."

Well how about he allows house prices to fall to a reasonable level rather than keeping the housing bubble artificially inflated??

Pete, Birmingham,

Did I misread? Surely the Treasury spokesman didn't say the Chancellor wanted to 'help' people onto the property 'laddder'?

Has this man no conscience? First, he and his boss plan to saddle the taxpayer with £50bn of useless paper, then, to cap it all, he tries to induce people to buy property at the very top of a bubble market. Anyone with the slightest nous knows which direction housing is heading and Darling Brown wants to con the desperate and ignorant into a lifetime of debt.

All this to save the bacon of some of the most greedy and unscrupulous businesses in history.

Wake me up someone, I must be dreaming.

Ian, France,

So now the Taxpayer is paying the 10% income tax increase, but paying BIG Multinational Banks Shareholders.There must be a Day of Reckoning for all those banks whose only intrest is to give out money 2 years ago. Now We save them WHY?.THEY are "Laughing all the way to the Bank"

Bertie, London,

It's' more about saving British banks than the British householder. Since Banking is 30% of the economy, City of London will probably lose half of it's business anyway. Can we afford to lose 15% of the economy plus the rest of the knock on losses?

Michael McCloy , Alcester, Warwickshire

A wholly absurd notion. Banks have been overlending. So off they go to the Bank of England and borrow to pay off debts.
What does one do if one is short of cash and lent money to somebody? One asks for it back! The banks should say to their customers "we want out money back you have 90 days to find another lender or sell your property". Simple. The property market will probably take an even sharper downward turn. But does it matter. A house if for living in not investing. The daft 'appreciation factor', translated into 'feel good', so that the less prudent can take 2nd mortgages for luxury goods and plastic credit cards.

A good round of austerity and fiscal clensing is needed. The tax payer is saddled with £50 billion of debt from Northern Rock who should have gone into receivership like any other business in financial trouble. Now another £50 billion is going to be picked up by the tax payer. This whole situation is going to end with apocolyptic consequences.

Chris, Salisbury,

Ah, the great American model: socialize the risk and privatize the profits.

Malbork, Surf City, USA

This will not "save the housing market from collapse". That is GOING to happen I am afraid to all you overextended, profligate borowers. You should have read the smallprint.

This tampering is the last ditch attempt of a pathetic socialist government to save an economy from complete collapse. It, IMO, is doomed to fail. Everyone should know, intervention like this always fails - the Government and the central bank is too small to alter the direction of the economy now - its like trying to stop a bulldozer with a daisy. Not going to happen. 50 Billion doesnt even cover 1 Months mortgage issues. The economy WILL slip into recession due to the credit crunch, and its going to be hideous. Millions unemployed, hundreds of thousands homeless and a budget deficit so large you could sail the titanic through it, just before it sank.

THANK YOU GORDON BROWN FOR DESTROYING THIS ONCE GREAT NATION!

If you want to see the truth watch this http://www.youtube.com/watch?v=pmeBSWI9sF8

Sam Smith, Southport, UK

Sorry 'darling' but you'll have to go. ha ha ha.

Gordy is riding this country dow the toilet. He was so anxious to get his greedy mits on the reigns he didn't notice Tony was only letting him have what he wanted as the wheels were about to fly off this gravy train. HA HA HA.

Oh and Gordon, if he refinery staff go on strike next week in your country (Scotland) and we suffer from a shortage of fuel then you cn be certain that this country will despise you even more than it does now.

Silly man.

Luke Faichney, Robin Hood's Bay, North Yorkshire

The Prime Minister is having a last throw of the dice to try to give Labour a small window of opportunity to win the next Election. Judging from the previous decisions he has made he is on a loser. The sooner the Conservatives return to power the better but I am afraid they will have to wait until the full term of this fatally wounded government expires.

john, milton keynes,

Proving once again people in the know are not prepared to let on what the risks are and making a muddle of things just to seem like they are doing the right. Lying with confidence just wont do . Reestoring confidence is going to involve,coming clean and biting at the truth then swallowing hard.......the famous bitter medice that british chancellors are supposed to well at. NOT hide from the truth and hope no-one really figures out whats going. .......We'Ve been ~ROBBed BY WHOM ....WHAT!!!! ......AAAAAAHHH?

harry, dumfermaline, scotland

"Mr Darling, is expected to press for mortgage lenders to ease immediately lending conditions, for first time buyers particularly"

So Mr Darling wants first time buyers to risk everything to pay extortionate prices to prop up the housing pyramid scam for a bit longer then to find they will be in negative equity in the months / years to follow. I think this is extremely iresponsible.

The banks fault that prices have gone so high. I would like to get married, have children etc but can't afford to rent or buy and i'm a software engineer.

Paul Piper, harrow,

The government should keep out of this. The banks have brought this mess on themselves and house prices seriously need correcting downwardsin order to make things affordable for the first timebuyer. Why are this government hell bent on forcing us all into poverty via unaffordable mortgages, student loans and green taxes?

jon, derby, uk

I am not an economist but I do not see how, even if it does result in an easing of interest rates and an increase in liquidity, that it will stop property prices from falling. It will principally be of benefit to those who are now having to remortgage. Who, in there right minds, would be a first time buyer in this market? Even then, I do not see the banks falling over themselves again to be remortgaging those with less than, say, a minimum of 20% equity. Personally, I have no sympathy at all for those who took out mortgages in last few years without considering that interest rates might go up.

Nigel , Poole, England

Keep puffing to keep the bubble inflated Gordon. And when you run out of breath, who will be left with the mess ?

When the bank of England lends money, where does it come from ?

roger, london,

It is rather sad that a highly respected central banker like Mervyn King has buckled under political pressure and is pumping £50 billion pounds into the system at a time when inflationery pressures are increasing . This can only add to the level of inflation with which we will all have to contend at a future date.
Buy to let investers who have made huge capital gains over the last decade and bororwers who made conscious decisions to over- extend themselves must be rubbing their hands with glee knowing that they will not suffer the consequencies of their greed.
Who will be checking the quality of the securities against which banks and building socities will be securing central bank funding?
How thorough will the checks be?
Can we be sure that the checkers will be able to understand the complexity of the secrities involved?
Will unsecured lending be acceptable?
I suspect that as the government is in such desperate straits that a nod and a wink will be the order of the day.

david jones, reigate, surrey

I'm from the US, so maybe you don't care about my opinion, but I think dead broke banks and financial institutions should be allowed to go bankrupt regardless of the financial market consequences. We have even a worse situation in the US. The US Federal Reserve and the Bank of England should hold there reserves back until the failing companies fail and then provide loans for the survivors to build the financial system back up again; that's the way our systems should work
Thanks for the excellent reporting and commentaries; our media in the US is so controlled (by Wall Street) that I have to go to international sources to get honest info
Dave

Dave, Lansing, USA, Michigan

I'm a first time buyer, this is a complete joke, I wouldn't buy now not even if i won the lottery, thanks labour for not helping me again.... Bet my tax will go up to pay for this, or is the government going to de-value the pound and send inflation sky high (which will be fudged back down to 2% ;) )

darren, halifax, w. yorks

Oh goody!! Happy days are here again.. and property prices can only go up.. I think I'll go and get a 100% self certified mortgage, and pay a few hundred grand for a shoebox in a crap part of London. Cheers Gordon, I knew you wouldn't let us first time buyers down.

Vote BNP on May 1st, or kiss goodbye to this country and any possible future for you or your children.

Steve, London,

I have not been able to get on the housing ladder for the past 4 years. This due to the fact that people have been borrowing more they can afford helping to artifically increase house prices. Imagine how peed offI am now having my taxes spent on propping up Northen Rock and this absurd £50bn reward for dodgy lending in the past. The banks and lenders have created this mess so let them sort it out. It is about time we had a house price correction anyway.

David Horne, Swansea, Wales

This is not on.He cannot find £7 billion to help the hard working low paid young people with the 10p tax rate,yet he can find £50 billion to bail out greedy banks.At the next election I would recommend that he is ousted.

stephen hulton, eure, france

This is insane! Property prices in the UK have reached absurdly over-inflated prices with obvious social consequences. Let the system collapse and all those greedy investors sink with it.

Philippe, Belgium,

Tony Pritchard,

Yours is the most succinct and descriptive comment that I have ever seen on the TimesOnline. Congratulations, I tip me 'at to yer.

Trevor, Romsey,

Likely most of this money will be taken up by those current cheap deals are coming to an end. FTBs now have to provide minimum 10% deposits. Won't prevent, quite rightly, a much needed correction in the property market. Yet another dud move by this discredited bankrupt government.

cww, suffolk,

I resent the government using my money to prop up a system that is basically full of fraudulent 'mortgages' that the banks have sold to each other for vast profit.

If the banks come clean on how much they have lost, write it down on their balance sheets, then everyone can start playing nicely again. Until that time, no new government money.

Gamblers Anonymous doesn't give out cheap loans. There is a reason for this.

B. Johnson, London, UK

Never will New Labour get my vote again. I'm moving to Australia. What's the point being a professional person, earning an above average wage, in this country when you can't even have a decent standard of living without supplementing you salary with credit? I personally have been very prudent all my life and have never overstreatched myself or had a loan. Unfortunately the few people like me are penalised for being sensible. This scheme by the Chancellor beggers belief. Let the markets take there course. Show some integrity instead of pandering to voters. Letting all the debt unwind, its to everyones benefit in the long run. Stop ruining peoples lives with these pathetic stunts engineered to make it looks as if you are not the incompetent fools you really are. Eventually the correction has to come or everyone of any worth fill finally say enough to this little island. By devaluing our currency no one is going to want to come here . Soon there will be no house shortage :).

richard, newcastle, tyne and wear

it was this kind of interference that got us in this mess in the first place. What gives Darling the right to offer tax payers money to banks and bankers who have been getting rich for years on the back of the same tax payers. Whatever the stategy of the banks its win win! This will fuel inflation, undermine the pound more and make savings and pensions worthless.

David, london, UK

When NR had £25bn of BoE loans it appears that mortgages were not acceptable collateral for these loans. Now banks with lower quality mortgages than NR will be allowed to swap them for £50bn of Government gilts - is this not proof in itself that the Government had no right to steal NR shares from employees, pensioners, pension schemes .... Is this also to be at a penal interest rate - I bet not. Darling - do us all a favour and resign - nothing's changed from Feb 2008 when you naionalised NR and what was not acceptable then is OK now.

Rob, Wiltshire, UK

Brown has a meeting with a few London bankers and a couple of days later we are chucking £50 billion at the banks. Firstly it shows Brown is weak and secondly he has no idea what is best for this country and the people who pay taxes in this country!

David, london, UK

Is there no accountability in this country for reckless decision making? First Iraq, then Northern Rock and now tax the poor more and give the banks (who all upped their recent dividends) cash to support their profits (and dividends). Someone somewhere needs to stand up in Parliament and ask why the banks cant issue debt to fund themselves? Ofcourse they can! It would just mean a big hit to profits and that would never do! So instead they say the subprime losses are hitting confidence and that causes liquidity problems. WRONG. UBS has been hit the hardest by sub prime yet it isnt getting a government bung. Why? It is issuing debt to fund its liquidity. Over the past month or two it has issued close to $10bn in debt and wil continue to do so to fund itself. The UK banks can do this too. So why are we protecting their profits with our tax payers money and no sensible debate on the issue? Dont tell us it has to be done when banks worse off are facing up to their responsibilities.

Chris, London, UK

The government will in this way collude in maintaining insanely inflated house prices in the UK. Thousands of would-be first time buyers will be left out in the cold.
I thought this was a free market country?

Guorlan, Rome, Italy

Mortgage lending in March 2008 was only 17% lower than March 2007 - what is the panic?

Has the government insisted on old fashioned lending criteria for the money borrowed against these higher risk securities? Or can we look forward to 125% mortgages and 10 times salary again?

Why encourage first time buyers to get on the housing ladder just as prices are falling? They will soon be in negative equity.
The banks have held the government to ransom with their "credit squeeze", until they have been able to pass on all their dodgy debts to tax payers. Profit for private sector potential losses for public sector.

Could the government not wanting house prices to fall be anything to do with them holding all the NR mortgages? Perhaps they think they have dug themselves into such a hole it doesn't matter if they dig it any deeper?

Fred Sly, Elgin, Scotland

Utterly disgraceful. The only logical reason I can see for this is that senior gov't figures heavily invested in banking shares and are now scared of seeing their lucrative retirement funds wiped out. They're looking after number 1, certainly not the financial well being of this country.
How is it that Alistair Darling announces the abolishment of the 10% PAYE rate six months ago and it took ministers until this month to start standing up for the people and complaining. When it is basicly too late to do anything,
USELESS!

Mike Gannon, B'ham, UK

It would be sensible to let the over-inflated house prices to drop and correct, as these are based on the reckless credit (what the banks have now been correcting) and speculation, but the Government is desperate to boost the buy-to-let pyramid investment scheme over the next elections, even though the eventual crash will probably be worse then.

Melville, Southampton,

this is the most insane idea - why would the government be using tax payer money to lure first time buyers to buy a heavily over priced item that will have a much lower value after purchase - why not just let market forces take care of it and let house prices drop to where they should be - probably about 30-40% lower than peak? that way the only people who suffer will be the people who foolishly overextended themselves and the banks who leant money without doing due diligence

john, vancouver, canada

£50bn to help 'fix' the free market economy! You can 'fix' the inflation and unemployment figures but you can't 'fix' the free market. We have had the boom, now we are heading for bust and the free market is in the driving seat.

Kevin Herbert, Greater Manchester, UK

How stange to see yanks make these comments when US governments have always proped up their house loans market through similar intervention. Go have a look at what Office of Federal Housing Enterprise Oversight (OFHEO), together with Federal house loan guarantee agencies, Fannie Mae and Freddie Mac did only one month ago. The UK government is probably tinkering at this level. The US announced at $200BN.
At the end of this it is trillions of pounds of house values that are being protected here and more importantly the economic impact of this US exported mess.
In respect of "greedy bankers/ shareholders". Did the wrter ever wonder where his pension monies are invested and who these mystery shareholders are? Its you, mate!
Peter, Brit in Dubai

P Ball, Dubai, UAE

Bonuses all round at the banks then and they can party like its 1999 - Nice to know my hard earned taxes go to such worthy causes as HSBC andf the Halifax.

Peter, Aldershot, UK

What Darling is trying to do is loosen the Banks' inhibitions about lending to each-other (wondering how many bad loans the borrowing bank might have on its books) and begin to free up the mortgage market. This can go two ways (both bad):

1) Banks take the £ 50 billion but, since no-one knows how much bad loans there are in the system, they still hold back from lending to each-other or:
2) None of the banks subscribe for these Bonds because to do so would be to admit (and make public the fact) that their balance-sheets are weaker than they had wanted us (and their investors) to believe.

The end result, in simple terms, is that nothing will change and some banks may be £ 50 billion less at risk.

Who bears that risk? The British taxpayer is my answer.

And my question is "Why?"

Why should we bail out incompetent bank management?
Why should we allow a drifting, direction less Government to bail itself out of trouble with our money?
Why not let the market decide?

MikeA, Manchester, UK

Well I guess Mr. Darling has his priorities right : He refuses to deal with the 10p tax rate question , but he happily takes care of the City bankers bonusses by handing them 50 billion pouds sterling without strings attached.
You are asking readers whether Darling should stay or go : My opinion is that he should never have been there!

M van Egdom, Wageningen, Holland

Isn't the "hard-to-trade mortgage-backed securities" basically US Toxic debt namely SIVs which in turn are securitized Consolidated Debt Obligations CDOs which in turn are foreclosed housing and bad car loans that are virtually worthless. A pawn broker will lend money against a higher valued item as security which can allow the debtor time to work their problems out without financial risk to the lender. The Bank of England could be left with a lot of worthless debt certificates if the banks can't work out their problems or are not prepared to abosrb the losses over a reasonable amount of time. 50 - 100bn GBP is a massive gamble with the UK's public finances.

Alois Schatz, Vienna, Austria

This is what happens when markets and banks are not properly regulated: financial mess. And taxpayers are on the hook for cleaning it up. Citizens need to demand better preventative measures before these crises occur, not just accountability after they occur.

D. Selby, Seattle, Washington, USA

This is an absolutely irresponsible action from this government - they've mis-used taxpayers money enough over the past 10 years - but this is one of the worst things they've done.
When (if?) the banks repay this £50bn with full interest - will taxpayers be in line for a payout? I doubt it - this government will find something else to squander the money on.
I think Vince Cable sums ihe situation up well - profits are privatised but losses nationaiised. I just cannot believe (actually with this government I can) such irresponsibility.

Jorg, Yeoford, UK

It "funny" bacuase when European governments help financially struggling companies (to save jobs) the UK government always complain about these unfair state helps.
I know understand why they complain, the problem with the UK government is that they can't accept state helps to save poor unskilled jobs, instead they opt for state help in order to pay big bonuses (I worked in the City for 10 years so I know what we're talking about, everyone deserves at least £500k a year, isn't it?) and dividends. Wow, that's really great. The UK is going along a very dangerous route, I hope you guys realise this. Not only you have lost completely the respect of the business community (after the Norkern rock fiasco), now you are turning into a laughing stock (for the privilefge of a few stockowners!).

Before complaining about what other countries do next time wait a second and think, the UK is probably doing much worse so don't criticise other people, you are not in the position to do so.

Paolo, Milan,

Ho, Ho, Ho, and I seem to remember almost a year ago, when it was put to a spokesperson for the banking industry that the industry might be indulging in irresponsible (over)lending that might lead to a property spike and subsequent crash, his rather flippant response was ".. we are not in the business of losing money".
Guess he must have known all along that the tax-payer would be there to pick up the bill for any over self-indulgence on the part of the banking fraternity.

Roman, London, UK

I think the government fully understand the consequences of a housing crash. The banks' balance sheets would be crucified and the resulting clampdown could bring nuclear winter to the high street. Bankruptcies, repossessions and unemployment would follow. Re-election would be ruled out by an electorate backlash. The Tories could get another 18 years - no wonder the sitting MPs are worried.

Jonathan, Leeds,

The average house costs £180K but costs less than £50K to build. This is a classic asset price bubble and propping it up just makes matters worse in the long run....

Unless they're planning a huge dose of inflation, of course.

Pedro, Stratford,

Mr Darling, my yacht isn't worth what I paid for it. Can you bail me out? And my computer has lost value, can you get the taxpayer to help me on that? My car too - I really thought such a classic would increase in value, but the market's gone pear shaped, so I need the government to step in. I bought a load of shares earlier this year, and I've lost on all of them, so I need compensation for that from the government too.

Tom Franklin, London, UK

I am certain that this "bail out" will result in some city smart alec finding a way to screw the tax payer and government leaving us with bill while they swan off to Barbados.

Let's face it, the bankers can't be trusted.

Rob H, London,

all subject to the EU Commission's approval, as you well know!

riccardo, brussels,

The lesson of Capitalism is simple, everything has a price including the future. Money that has not been earned exists,it is called credit. Whether it is the promise to pay for attack aircraft by a state, or a mortgage repayment by an individual it does not actually exist, it is merely a commitment that on a certain date the money will exist.To the vast majority it is an admission that they are willing to work ... to pay their way, to honour their debt.
Some form of control has to be exercised on this economic system, we trust that control to governments and the International banking corporations. These revered bodies are all in competition with one another, their sole aim is to make more money. Currently there are two ways to make more money. Firstly - finite resources, food and oil; it seems that these will cost more with each passing day. Secondly- selling the future, based on a principle akin to alchemy... that everything in the future will be worth more. Bleak isn't it.

Douglas Miller, Fulham,

Wow, some bank loan. How much do you have to earn to get this kind of mortgage?

Ian Burgess, Bristol,

Just leave Brown. Nobody likes you. Nobody wants you. Nobody listens to you. AND......before we all forget, nobody ELECTED you. Just stand there, tell us all that you are sorry....you're not up to the job.....and that you're doing the only decent thing and resigning. And the current situation only makes a mockery of your prudent handling of the economy as chancellor. Years of growth built on false asset price inflation and exploding personal debt. Bravo "Sir".

Ben, Hyde, UK

Seen the BBC's Super Rich Greed program, you would think that this credit crunch came out of nowhere and was no ones fault.

Something that just happened, it was the banks greed that caused this, giving loans to what were low paid even the unemployed. These loans were then package up as Triple A investments and sold on at a profit. The banks knew these loans were not worth the paper they were written on and people started to default on 1st payments and the whole house of cards came tumbling down.

As the program said, Banks Hedge Fund and others created this, but as one of the main players even said himself, its a one way deal. We get paid if our gamble with investors money pays off or not, if not 2% of funds, if they make a profit they take 20%.

As the commentator said, they play with other people money and if it goes wrong, its on such a scale that governments have to bail the system out, while they walk away with £bn's.

walshy, glasgow,

Genuine help for people buying their main home, or Labour Party support for people wanting to own multiple homes ?
The problem is that to support house prices much of this £50 Billion will leak into the buy to let market.
City spivs will be queueing up for £10Million mortages on their main homes, and be seking another £100Million for buying investment properties to fund their retirement in offshore tax havens !.

Peter Hooper, Windsor., UK

I'm not a UK tax payer I pay my taxes to Sarkozys lot.However,I have paid UK texes ( lots of them ) for over 20 years of my working life.This would not be allowed to happen over here.By law any French Bank that lends out money whereby the total monthly payments on all loans including mortgage / rent exceed 33% of take-home pay is taking a risk.If the borrower defaults they have no power to make you pay through the French Courts.Hence there is no consumer debt mountain over here.

stephen hulton, eure, france

Giving my taxes to prop up the lenders??

Banks already give loans on far more than their stocks in gold, we are charged interest on gold they do not even have in their vault... and yet they've got financial issues??

They need our taxes to bail them out despite the profits they reap by charging interest on a commodity that only 20% exists in their vaults!!

Are we British too stupid to see this for what it is?

Tim, Middlesbrough, UK

The £ is weak due to the U.S. sub-prime mortages, so why is the € strong when the many European Banks also have exposure?

P Mitchell, Brighton, U.K.

well, taking into consideration i am not a share holder, or a trustee of any major bank, this probably wont work, but can Brown and his Darling side-kick bail me out of a little trouble with the bank, its on a few grand, but there is 50 billion knocking about!

terence, sheffield,

The comments are a bit on the hysterical side are they not? If someone's house is on fire, you expect the fire brigade to dose the flames out otherwise the rest of the street may go up in flames. And so it is with banking...it is a deep crisis being fuelled (excuse the pun) by deep mistrust resulting in a hording of cash and inevitable recession down the track. This policy seems to me to put a foundation under credit allowing the commercial banks to go back to normal. What is wrong with that? The alternative is as ugly as a Rangers centre half!

Michael Mulholland, Sydney, Australia

Experts have been saying for many years that house prices were 30% to high and that this would cause a problem later. The government removed the necessity to have a 20% deposit and the banks were giving away 100% mortgages.

I am not an economist so probably don't understand all the intricacies BUT if you keep loaning money to people who cant afford it eventually you will get stung.

We should not prop up this bubble and the only reason we are doing so is the next general election. If the property market crashes there is no chance in hell that labour will win whereas if it props the market up it may just convince some people it knows what it is doing.

Joe, Edinburgh, Scotland

I dont want to defend this government, but some points should be clarified...

1) This 50B is not a loan in the normal sense of receiving money today that will be payed back tomorrow, so increasing money supply (and inflation). Instead, it involves receiving money in the future (MBSs) to be repayed in the future (bond). So money supply is not increased.

2) Hhence, the tax payer is not paying 50B to the banks.

3) However, the problem comes when the mortgages default. That loss will be borne by the taxpayerinstead of the banks. What fraction will default? I imagine the total losses would only be a few billion at most, over several years.

4) The motivation is twofold; a) enable banks to lower mortgage payments, so the economic slowdown is lessened [noble], and b) delaying the slowdown until after the election [cynical]. 'Helping first time buyers' is just badly targetted spin!

5) But with energy and food inflation, global slowdown, and job losses - its too little too late

Tony B., London, UK

It warms my heart to see that the majority see right through this massive theft. For the hard of thinking, here are some 'highlights' -

The banks have lost all our money pricing half of us out of houses by lending to anyone who can fog a mirror. Now the government intends to bail the banks out with more of our future money, so we can continue to be priced out of our own country.

If there's anything left in the government coffers, they'll probably spend it on a war more than 50% of us disagreed with, and most of the rest keeping us in our boxes, in an atmosphere of mutual suspicion.

Our country has been stolen from beneath our feet, the right to protest has been taken away, and the cameras are turned on the victims.

'Things can only get better'
'I will not allow house prices to get out of control'
etc etc

Albert Hall, Blackburn, Lancashire, UK

Every year the banks roll in huge profits in the billions. Their top brass get millions for what exactly?

Now the tax payer has to bail them out. I am totally against it and they should suffer for the greed and recless lending they have done in the last 10 years. If it were not for them the housing market would be OK and "normal" but with offering 100 plus and more mortgages and income multiples of 6x and more they should clean up their own house.

Darling & Brown you have lost the plot and this is coming from a Labour supporter. I think I have to vote for someone else now. How dare you waste our reserves on those conglomerates but ordinary people get taxed out and kicked in the but.

Daniela, London, UK

£50 Billion for the banks but for people struggling badly at the bottom of the pile an £8 Billion theft. Disgusting...utterly disgusting. This says EVERYTHING about this Government. GET THEM OUT.

judy, Liverpool, England

Still haven't worked out WHY exactly we shouldn't want house prices to fall - it'll give first timers a chance to get their own places without a financial millstone, and oevr time reduce the national consumer debt. The further the better as far as I can see. Anyone get the impression this government just haven't a clue either ?

roarke, Wembley, UK

A condition of support for individual banks should be that they get their house in order to ensure that their staff stop making big bonuses by lending irresponsibly to people who can't afford to pay their loans back.

How many bank directors have lost their jobs by supervising bad decisions?

And what's so wrong in the amount of credit being reduced? Surely if someone wishes to buy something, they should be sensible enough to save up for a good percentage of the cost before borrowing the small balance required. Let's have some discipline and commonsense.

David, Poole,

Is it possible to call for a motion of No Confidence in this government and thus force a General election? Who can do this? and would they do it now please?

G Wildon, Ipswich, UK

Well I do not know why Labour MP's are even going to bother standing in the next general election. This fiscal insanity is clear admission that the Labour government know that they cannot possibly win an election, so they are hell-bent on bankrupting the next incoming Government out of spite. This is obscenity bordering on treason.

in a true reversal of 1997, when a deeply unpopular Government gave way to a new start, handing over a golden economic legacy in the process. This is one which labour are squandering the economy as fast as they are able and kicking the poorest workers whilst they are down in the process.

Ken Hall, Barrow in Furness, UK

What happens to the riskier mortgages (they will be manifold) exchanged for taxes (OK call them "Bonds" in this case) by the accomplished fiscal manipulators at No.11? Of course, tax-payers will indemnify and reimburse themselves through their Treasury of their taxes. Doh!
Ex-chancellor "Prudence" Brown and sinecurist Darling - heads you win, tails they lose. Until a general election, that is.

Viktorovich, Moscow, RF

Governments, and the economists who feed them, haven't got a clue: if they were doctors they'd still be cupping and bleeding.

For the super rich Britain has long been a quarry to mine for whatever short-term wealth it might hold; for the greedies to then run off abroad to enjoy a life of ease on their profits.

This country has been run into the ground; sold off; pillaged and wrecked. Those of us who cannot afford to leave will soon be fighting each other - mark my words.

CS, Norwich, UK

I dont want to defend this government, but some points should be clarified...

1) This 50B is not a loan in the normal sense of receiving money today that will be payed back tomorrow, so increasing money supply (and inflation). Instead, it involves receiving money in the future (MBSs) to be repayed in the future (bond). So money supply is not increased.

2) Hhence, the tax payer is not paying 50B to the banks.

3) However, the problem comes when the mortgages default. That loss will be borne by the taxpayerinstead of the banks. What fraction will default? I imagine the total losses would only be a few billion at most, over several years.

4) The motivation is twofold; a) enable banks to lower mortgage payments, so the economic slowdown is lessened [noble], and b) delaying the slowdown until after the election [cynical]. 'Helping first time buyers' is just badly targetted spin!

5) But with energy and food inflation, global slowdown, and job losses - its too little too late

Tony B., London, UK

Great phase from bbc news this morning; " the banks privatise their profits and nationalise their debt". Surely there is something illegal about this? It seems ironic that the hard working, solvent, tax payer who cannot get on the housing ladder is supporting those who are, but have overstretched themselves. Looks like I'm bringing my family up in a one bedroom flat. Thanks Labour!!

Richard, London,

I just do not understand.
Every year the banks make billions of profit. Where has all of that money gone?

I do not agree with bailing out the banks as they put themselves into this position. It would be good for the housing market to correct itself as the properties are 100x overpriced.

As usual the taxpayer will have to pay for the ruthlessness and greedyness of the banks.

Daniela, London,

A common theme is shareholders not taxpayers should pay in a "bail-out" of the banks. The conveniently ignored fact by the government and the media is that the real shareholders are mainly pension savers who are also largely the taxpayers. The people who should pay namely the vastly overpaid and over-rated fund managers, company senior managers etc who extract billions each year from companies in salaries, bonuses and fees, and therefore from our pension pots are laughing all the way to the bank, whilst we pick up the tab for their luxury lifestyles in receiving lower pensions for our hard-earned savings. The real shareholders/pension savers have no say whether the likes of Goodwin and McKillop keep their jobs or what they get paid - the people who do have vested interests in keeping the "high remuneration for poor performance" gravy train rolling. It is tantamount to legitimised theft on an immense scale from pension savers.

David, London,

Moral hazard, anyone?

James, London,

"So the Government (that really means us) is becoming the owner of these continually declining derivatives." - Steve London

... Does that mean that, if we default on or mortgage, then our mortgage company will be required in court to prove that they still own our mortgage? and that it has not been salami sliced into AAA derivative funds? If so then there should be a freedom of information request to see if we still owe our lender any money.

If these loans are being paid back, in advance by the government (by the tax-payer) , then why are we paying our mortgages at all?

Ken Hall, Barrow in Furness, UK

No-one fell over themselves to help me or any of my other University -educated, tax- paying, working, non- home owning professionals when we were priced out of the market by speculators lying on self- cert mortgages, borrowing on credit cards and snapping up buy to let portfolios.

Ten years ago. most property was 'affordable'- now very little is.

This is a disasterous economic scorched earth policy by a morally bankrupt government desperate to buy votes, the consequences of which will take the next Conservative government years if not decades to repair.

Dan Oxford, Oxford, England

the UK population is (approx) 60,776,238 ......now much each, do we get? would that not help a little more?

just asking

Neil Christopher, London, London

Is it not the very personification of hypocrisy when this shower can throw 50 billion ot our money at an incontinent banking system policed by equally incontinent regulators to bail out the Brown debt boom whilst in the same breath Labour cannot spend 8 billion (just over 1/6th of that amount) also in taxpayers money, to rectify the 10p fiasco, yet another Brown own goal?

philip, Ipswich,

Marconi, MGRover and numerous other industrially important companies have been destroyed by the failure of the financial services sector and the Govt to properly support UK industry.

Frankly, I wan't at least one bank to go bust and I want complete humiliation for their management. They deserve their comeuppance.

DickW, Aberdeenshire,

A lot of very bad fiscal omens are on display which leads one to believe our monetary system is nearer to collapse than the Government would like us to know about. Northern Rock and now anoher £50 or £100 billion prop being thrown into an equation that no one really knows the extent of. Time for a very long session of Grandmother good housekeeping rules. I think they begin with the word thrift.

Robert El-Cid, Hull., East Yorks.,

It's come to this! Rewarding the greedy and stupid by punishing the clever and cautious. If this surreal idea "works" then prices will continue to inflate and again become un-affordable - a fact "the system hitherto known as the market" is now trying to correct. So at best this is delaying the inevitable. Or will the "State" (I use this term as it is used in socialist economies) continuously try to correct "the system hitherto known as the market" by printing more dosh? If it "fails" and the market continues to correct itself, then what? Banks fail and the government reposesses property of reduced value? Then? Will the government flog the property at firesale prices, flooding the market and further reducing prices? At the same time the tax payer continues to subsidise the dumb government which lent to the dumb bank which lent to the dumb punter? Isn't this a recipe for economic meltdown? Isn't it better to accept some turmoil now rather than mortgaging the whole country?

Jo Jackson, Prague, Czech Republic

If there is a credit funding crisis within the banking system and more particularly the housing mortgage market, why is it that, according to yesterday's Sunday newspapers, the FSA is requiring the building societies to make special deposits with the Bank of England totalling many millions of pounds. Are we being told the whole story? I think not.

Ian Buck, Helston, Cornwall

Monetise the debt, let inflation reign supreme.

Dominic, Manchester, UK

A national petition should be created in order to force this non-elected non-entity to resign. They are destryong the economic and social fabirc of our country, and need to be stopped immediately.

Elisa, Kent, England

How will this measure to support the housing bubble help first-time buyers? I want to get on the housing ladder but do not want a 100% mortgage on an overpriced property. I would far there be a correction to the overpriced housing market so that the money I have saved will provide a reasonable deposit, and less of it will be spent in government taxes.

liz carter, watford, uk

What does this say about the Government? is it using public money to help re-elect the labour party?

to sure up the house prices is wrong, i have a large mortgage, but I understand it's the flow of credit/money that keeps an economy moving, the UK economy is stuck and needs to move.

another point, Banks are PLC's why is the Government covering there miss-management to this degree? are we the tax payers going to get the same level of help when we need it?

you may hold our house prices steady but if our TAXES are to high, we not better off, are we?

pay it into pensions, the NHS or small businesses that make help the people your trying to help by throwing good money after bad with the banks

Neil Christopher, London, London

Whilstr nations such as Japan were investing in factories we have been investing in debt whilst our governments have sold everything and made people believe that relying soley on inward investment was positive for the future! Now we are going to see that they were wrong on that as well!!!

Steve, Watford, England

This is not only insane but illegal under EU competition rules.

Noel Falconer MEcon, Couiza, France

Don't you love the attitude of the banks towards our leaders? Very de haut en bas. Like we don't understand what you're saying, mate, but if you're going to give us something for not very much, we'll think about it. If not, not. Of course, it's all our leaders deserve as they haven't got a solitary clue about high finance. What a brilliant idea to loan out taxpayers' money, betting that the housing market will not continue to decline. Quite startling. But while we're at it, surely we can help out the banks with more than a paltry £50 billion?

john problem, winchester, uk

I believe that Mr Brown is actually mising a trick here....with a view to saving the economy and his political legacy. He keeps telling us that that he wants to save the economy - all well and good. He then interprets that house prices need to be kept artifically high to achieve this -- moral hazard etc ... reflecting majority of sane comments above. The bit that he is missing is that there are plenty of goons out there (me included) who had been saving for a house .... as the prices have got higher and higher, the need for saving gets higher and higher. Now imagine, if goons like myself were then able to buy a property (I am a FTB), then my propensity NOT to save would be much lower... ie I woud have more money to actually CONSUME..... so, goons like myself may be Brown's only true way of avoiding a recession. I am also a firm believer that the people who had profited from this reckless debacle should be encouraged to give the money back.

Terry, Belfast,

I bet the bankers can not believe their luck here. What a bunch of chumps we have running this country. As a conservative supporter I am dismayed to say the Cameron and his lot are equally useless on the debate surrounding the credit crunch. Using taxpayers money to support the housing market is not on. The problem here is that house prices are far too high and people can not afford them. Perhaps the government would have been better spending £100 billion building new houses for the young people that need them, rather than supporting the rotten status quo.

Chris, Banbury,

I think they missed a trick instead of giving dodgy loans to dodger bankers they should give the £50 bn to us in the form of coupons that can only be used to paydown debt the banks will get the liquidity we substantially reduce our indebtedness which will give us more disposable income which will boost the rest of the economy ad at the end of the day whos been proven a better bet the public or the banks

JoeT, Ipswich,

An interesting question now is where would the government find the money to pay-back everyone's savings (those that have them) under the guarantee system if the big 5 banks do go under? And for those of us with debts, would a crash of the entire banking system wipe out our liabilities? There might be more people, especially amongst the under 35s who'd like to see this scernario than those that wouldn't (unfortuantely we're not in power).
With food & living cost inflation rocketing out of control, there's not enough public funds to pay the police, teachers or nurses an honest wage or provide our troops with adequate equipment whilst the government are 'breaking the bank' to prop up their failed economic policy. Shameful

AHH, London,

Yes, it's moral hazard, yes the taxpayers bail out the banks and allow them to nationalise their losses, yes we are all frogs being boiled slowly.

The only question is: Apart from grumbling, what precisely is anyone going to do about it?

Anthony, Paris,

Another example of the Government's incompetence (along with running up the highest national deficit in Europe, taking on the Northern Rock risk and Gordon Brown selling the UK's Gold at the bottom of the market) in buying into the banking industry's belief that it is too important to fail, and persuading politicians that this is true.

Norway had a major banking crisis in the 90s, for similar reasons that we are facing today. During this, no government guarantees were given for bank liabilities, 2 of the 3 largest banks had their share capital written down to zero and were then taken over by the government, but they were not bailed out and had to suffer all the losses before any public money was committed.
Norway avoided a bank collapse, the problem was resolved in just over a year and Norway made a profit of 0.4% of GDP after it sold the shares it had taken over at zero on the open market when the banks were operational.
Labour is helping the banks survive at the expense of you.

john, london,

Great, lets restore house prices and wages to the right level, so all public sector workers can get on with life. 200% pay increase please.

ethan, London,

Now that the government has control of Northern Rock, could this not be used as a vehicle to offer affordable mortgages? Then the other private sector companies can choose whether to offer competitive rates in comparison.

COLIN, salisbury, Wiltshire

What sort of economy is this that relies on people incurring massive debt against unsustainable house price increases?

This situation was entirely predictable.

Andrew Pittman, Bristol, UK

When house prices are low and rising, the risk the loan providers bear is small, so the risk premium added to base rate is low. When house prices are high and perhaps falling the risk of loss following a default is high so the risk premium is high. Whoever provides the money will either bear this risk or have to lay it off. If the Government is going to seek to protect taxpayers and require extra assets from the banks if the value of their housing loans falls, then the risk of a loss appears to remain with the banks. It is these losses/write offs to the equity base that has caused the credit crunch, so it does not look as if much has changed.

Observer, Truro, UK

AD 'expects' the banks to “begin now to disclose the extent of their losses and explain how they are going to rebuild their capital” and he is "is expected to press for mortgage lenders to ease lending conditions, especially for first-time buyers..". Don't 'expect', make it a condition of the bail out! Banks are businesses, and they will do what they can to make money. Without specific conditions and penalties, there will be nothing to stop them contiuing to rip off thier customers.

Ron, Milton Keynes, Bucks

Cameron and the conseratives also supporting this incompetent scheme. Maybe the Libdems or Greens will sweep to power in the next election - after all, what have we go to lose?

Clint, Brighton, UK

The banks have a name for Alistair Darling , SUCKER!

Ron, Milton Keynes, Bucks

"..What we really need is Sooty and Sweep with their ooffle dust and magic wand. "Izzy wizzy, let's get busy..." There, all better.


G Roberts, Hereford, UK..."


OMG ! you lot are so angry! Not fans of Prime Minister (Crash Gordon) Brown Unelect then?

Austin Tassletine, south west , UK

This is an act of desperation. Nothing is going to save the economy form the effects of uncontrolled globalisation. With Iran ready to send the price of petrol through the roof, we are all in for a bumpy ride!

Matt, Napoli, Italy

Seein as ALsairDarling has no background in banking or economics, I would like to know on what experience he bases his decisions?

Terry, Cambridge, England

If the Chancellor wants to support the mortgage market then the obvious solution is to lend money directly to responsible organisations such as building societies. Alternatively, he could supply cash via the bank we own, ie. Northern Rock.
Supporting dodgey loans that banks have made to the U.S. is plain stupid.
Issuing bonds is not much different to printing money and a recipe for inflation. No doubt savers will be ripped off with interest rates which will not cover the real rate of inflation.

Barry Crossland, Elland, U.K.

Its in the small print as usual.

"The Treasury has admitted that it cannot force lenders to use the money to the benefit of customers."

So that's the punchline. Why have a rights issue when the Government will step in to ensure your next Christmas bonus, after all the precedent was set by not passing on rate changes but trousering of the difference.

Christmas has come even earlier this year for the banks

Robin, Crawley, UK

This sounds like a meal ticket to carry on with the spending spree. You will all be back into the shops double quick to buy even more stuff you don't really need. All paid for on tick as you stack up even more personal debt. Will you also be remortgaging your remortgage to continue playing unhappy families in the house you do not own. Have a nice day.

Colin, Carmarthen, UK

What good news, hopefully the banks will pay back some of the money that they ripped off the general public in the great endowment scam when they recieve their tax payers windfall, as if......

lesley jones, Stroud,

The printing presses at the Bank of England will soon be working overtime. This harebrained plan is doomed to fail because the losses can't be absorbed without the pound being destroyed and hyperinflation ravaging the land. It's called MUGABENOMICS and it has just crossed the English channel.

anthony, london, england

Edward, London, said:

'Labour are playing a masterful game here of bankrupting Britain for their own gain. Brown knows he is out at the next election so instead of having financial havoc now he will do everything to keep the bubble inflated, including the shameful and irresponsible use of taxpayers money .By having it explode on the Tories watch he can then sit in opposition and tut tut the future government.'

Bingo! Well said that man. In other words, poor government pass on their failures to future generations. The game is, who is left holding the baby?

A child could see through this one.

This is one of the most desperate, ill-conceived, anti-democratic, half-witted, ill-fated plans that I have ever heard.

Well, done, Darling, setting another benchmark for New Labour cynicism and incompetence.

You may not even make the next election because you have been rumbled.

joe, Berwickshire, Scotland

this has Brown's snotty fingerprints all over it. Must we wait until 2010 to get rid of this despicable Government?

Beverley, Wolverhampton, England

It is interesting to note that, whilst the Bank of England is supposed to act with total independence, Alistair Darling is claiming this latest idea, to use bank funds, is his.
The bank should turn it down as being an irresponsible use of tax payers assets

John Lodge, cirencester,

There is an "atastroke" solution to the problems of the Treasury, the BoE, and overpriced housing.
Borrow- to- buy- to- let landlords should not be allowed to offset mortgage interest against their tax liability, effective immediately.
A level playing field between owner-occupiers and BTL would quickly restore house prices to where they should be - average house price about three times average salary.
The system as it stands is corrupt, and the latest idiocies will make it worse.

Tony Peterson, Kendal,

I see. Swapping borrowings for borrowings to solve a borrowings crisis. Yes, let's all go out and do that.

Mike L, Chippenham, Wilts

No more boom and bust ? Nice one Gordon - we've had it !

Greg, Warwick, England

Why cant the government be sensible, let the banks fail and then buy them for a pittance, that is business. If you make a huge mistake with your company someone will come over and take it away from you for about 10% of its true value.

House prices are recognized as being 30% too high, something that massive profits were made from and dropping this will help many to get on the property market.

The government is just trying to shore up its business friends profits against common sense.

joe, Edinburgh, Scotland

We live in a free market economy. The banks and financial institutions have made billions when the times were good and only worried about their shareholders. Now, when times are hard, they expect the government to bail them out at the expense of the taxpayer. This should not be allowed.

Hamad Lone, London, England

Don't worry there are a lot of pine trees to pulp and a lot of ink available so there is no problem in printing money to bail out our best friends." 55 billion there you go and if you want more you only have to ask, by the way is that enough to cover your salaries and bonuses?"

Scott, Bangkok, Thailand

This is not an attempt to shore up the housing market, in fact it has very little to do with the housing market at all. The talk of helping the home owner is a red herring (as it is in the US where rates at 2.25 have not been passed on to borrowers).

It is a direct swap of MBSs that the banks will not buy off each other (as they are losing value rapidly - and will continue to do so as the housing market declines - remember they are secured on current mortgage values) and cannot sell to anyone else, for Government bonds (which are really cash).

So the Government (that really means us) is becoming the owner of these continually declining derivatives. Remember, the value is determined by the bank that is doing the swapping, not by the BOE, so the BOE will pay face value for the Securities not market price. The question we should all be asking is if the MBS are AAA why can they not be sold in the market to raise the money the banks need to keep solvent, rather than the tax payer.

steve, london,

This is a £50 billion bailout of the labour parties election fortunes, just as the bail out of Northern Rock was a tax payer funded subsidy of jobs (ie labour votes) in the north east.

TrevorH, OXON,

"3rd class passenger on the Titanic" ... a superb analogy. Congratulations

TrevorH, OXON,

No more boom and bust ? We've had it. Nice one Gordon.

Greg, Warwick, England

Oh spare me the miserable "banks are going to take all the profits" cryfest. Luckily, banks are all public companies. If you honestly believe that banks are hoarding all this money to stuff their own coiffers then you'd be foolish not to immediately buy their shares. Let me guess - not going near banking shares with a ten foot pole? Thought as much.

Abioye A Oyetunji, London, UK

Labour are playing a masterful game here of bankrupting Britain for their own gain. Brown knows he is out at the next election so instead of having financial havoc now he will do everything to keep the bubble inflated, including the shameful and irresponsible use of taxpayers money .By having it explode on the Tories watch he can then sit in opposition and tut tut the future government.

Edward, London,

'Why o why do the government want to support the housing market?'
Unfortunately Terry it is all much more simple than it seems. The government want to support the housing market because they are house owners (many of them with several houses, some worth millions) and will use 50 billion of our money to ensure that THEIR houses don't drop in value. Make no mistake, they don't care about your house or your livelihood, they don't care that half the population can't afford to buy a house at all, they don't care about the effects of their profligacy on the British economy, just so long as their assets don't suffer. They know that house prices are insane and that the logical (and morally correct) thing would be to let them find their proper level and if they could find some way of ensuring that their houses increased in value while yours fell they would be doing that. As always, since the beginning of time, the rulers look after themselves first, using your money to do it.

eric campbell, harrogate, uk

I will not forget that Cameron's Conservatives have supported the bankers' greed far more than the government, being the most vocal in presuading the government to take the banks' bad securities off their books. Depressingly, only the Liberal Democrats appear willing to ask the banks to assume responsibility along with their massive profits.

russell, london,

This is a necessary step, but the mortgage-backed securities must be bought by the Bank of England at a discount to their face value. Otherwise we have moral hazard on a colossal scale.

James Kennett, Worcester, UK

Does anybody know how much of these mortgage-backed securities and other "junk" is in with-profits pension funds? Do those of us who saved for decades for our retirement need to worry?

Bill Peter, Kuala Lumpur, Malaysia

What does this say about the value of a government bond?
Why should loans in default or threatened default suddenly be the equivalent of a government bond?
All government bonds should be repriced downward to reflect the very real increase in riskiness, and the precedent that this stupid move establishes namely that it doesnt pay to be prudent ;no- take as many risks as you like and the biggest bloodiest risks that you can find,and dont worry Mr Stupid Taxpayer will bail you out if it all goes wrong.
Why should the Bank of England be underwriting the price of houses?
Mervyn King was very big on Moral Hazard until recently,but I suppose the pay and pension are just too tempting.He really should shut up and not go on making a total fool of himself.

Phill Space, Tring, UK

Dear Mr Darling

My share portfolio is down 30% over the last few months. Please can you send me some cash to make my losses up?

Nick, Zagreb,

An independent Bank of England? Make me laugh.

Ubi, Edinburgh, UK

Actually, while I think that this measured is necessitated, I do want to know how exactly they intend to prevent this from happening again, and how they will make the banks pay, and if they'll ever be able to make it up to myself and the all the other sensible solvent, not overstretched people of England.

I want heads to roll and the rich and mighty (who have profitted from this) to suffer for the pain they cause us all.

Duncan, Wokingham, Berkshire

Quote above:
"... could be doubled if it fails to stave off a collapse in the housing market".


"Up, up and away, in my credit balloon, my credit balloon, my credit balloon?"

Is that double, and/or quit? Ok, property is important, but really!

Why not inject £500 trillion and more? Then we could all afford two homes and have some left over for our pensions, petrol and healthcare including dentistry.

What we really need is Sooty and Sweep with their ooffle dust and magic wand. "Izzy wizzy, let's get busy..." There, all better.

G Roberts, Hereford, UK

Why o why do the government want to support the housing market, is it because of the money from stamp duty and inheritance tax they rake in? Let the market return to a NORMAL level and maybe first time buyers will be able to afford a home of thier own!

terry, High Wycombe, UK

I abhor this current situation and feel betrayed by the government and the Bank of England (although I did not vote for this government), and deep resentment at the banks.

But, I think the point is this: the British economy has suffered a deep and massive wound, by putting this band aid on it the government is looking to stop the bleeding from the main artery, but by doing so makes the body leak slowly from small capillaries.

We may lose as much blood this way, but at least the economy doesn't die in deep writhing agony. So do we try to save our collective skins, or else, do we let those with in dire straits drown and hope they don't pull us down too, because whether you are in a job, have no debt and a smaller mortgage, this crisis could see your savings go under, you house price plummet and your job go.

This may just avoid that situation, but I'm not happy to be here

Duncan, Wokingham, Berkshire

How much of this £50 (potentially £100) billion will be used for bonus payments to bank employees?

Barry Deeks, Barnet, England/Herts

Yet again this government is playing russian roulette with tax payers money. If they were in buisness not that any of them would get such a postion, they would be bust. What they are doing is yet again covering up for their past mistakes. What next lend people 10x their earnings especially first time buyers and then wander why people cannot pay their mortgage. Greedy makes you needy and it serves the banks right. I bet darling gets a job in banking when he is finally kicked out along with Brown....any takers??

neil walker, almere, holland

The headline here is hysterical and misleading. This is not a bailout of banks. It is a technical measure to push liquidity into the banks and allow them to lend, as the Federal Reserve has done in the US. The credit risk of the mortgages still resides with the banks and the government is not pumping in cash. A dysfunctional banking system is to the severe detriment of everyone in the entire economy and not just the few fat cats at the top.

Dave, Hong Kong,

I can't believe this is happening! I feel like a third class passenger on the Titanic. The rich and arrogant are frantically scrabbling about doing everything to save themselves while the rest of us are left to drown!

Lee Calladine, Portsmouth, England

Well said Rob , Derby. This thing is only just getting started. Down here the Reserve bank and government seem to think Australia is some how magically safe from what is happening.

Steve, Suhshine coast, Australia

The UK Government is taking the same wrong step as the US Government. The increased liquidity in the banking system is merely fuel up the heat in the commodity market rather than stablize the housing market. It would just make the inflation worse than before. The government role is to stablize the market when it over-reacts rather than prevent it from correction. It would just prolong the recession in the future. Please learn a lesson from what have happened in Japan.

Ted, Hong Kong, China,

An economic system where the corrupt and reckless are rewarded while the prudent are punished is destined for collapse.

Paul Amery, London,

I would like to register my strong disapproval to this plan, representing as it does both significant moral hazard and, again, the misappropriation of taxpayer's money.

John, Reigate,

This country gets ever stranger... We have the government paying tax credits and housing benefit to prop up full-time employment that doesn't pay a 'living' wage. In effect a subsidy to low-paying employers. Almost like living in Stalinist Russia, there is little link between what work these people do and the money they have.

Now we have the government propping up house prices. Protecting many greedy and stupid people, while preventing millions of others from owning a home to live in. It already did that over the last ten years by failing to build new houses and allowing a huge population increase, both of which led to greater demand/higher prices.

The financial traders with their massive bonuses and wealth are the new landed gentry. Except without the philanthropic side that existed a century ago.

Britain is corrupt and broken and I'm very sorry to say that.

Robert, Manchester, UK

This is a disgrace.

The government is spending my tax money to support a bubble?

The world has finally gone mad!

Is this a labour government?

Is this a sane government?

Patrick, London,

If the government wants to revitalise the housing market, surely increasing the thresholds of stamp duty is more cost-effective than using taxpayers money to shore-up the lenders. Result - more poeple able to afford houses, rather than pay the government a king's ransom for the privilege of buying their house.

Lenders should do more to look at the real affordability levels of potential borrowers, thus reducing the risks. I was recently offered a 5x salary mortgage with very few in-depth questions as to my true ability to keep up repayments.

The FSA should draw up new guidelines for lenders to reduce risk for both them and the borrowers. Result - less risk for all and a subsequent potential for lower interest rates.

I know these proposals would not solve everything, but surely they're better than hocking the country to the tune of £50bn (or maybe more) in order that the poor, hard-done-by lenders don't lose money...

Nige Thorpe, Whitchurch, Hants, UK

I agree, house prices are over-inflated. Problem is, if they fall 30% in a year then they'll pull the whole economy down with them and then it's job losses, massive unemployment etc. I think what we'd all like to see is a nice fizzle from this bubble rather than a pop. Drops of 5% a year for the next 5 years would be nice. A nice realignment without the all the pain.

Richard, London, UK

Darling is either a criminal wasting tax payers money, remember this will have to be paid for with higher taxes or else he is insane. There are no other options!

Stephen, St. Ives, England

I find it crazy that people are surprised that cash is becoming more popular.Perhaps thats whats been missing during the kast 5 years?You pay with cash you know you've paid for something.You pay with credit and no-one appears to have a clue whose paid for it,if anyone.

stephen hulton, eure, france

Not unlike the Lloyds crash all over again, where speculators and investors were happy to take the profits, and then cried foul when they had to pay the losses. In the housing market, values can go down as well as up, so why should the government help keep the housing market artificially inflated? Strange as it is to find myself in agreement with the Lib Dems, why am I and every other taxpayer underwriting the banks potential losses to ensure that house prices stay at a level at which I can not afford personally to enter the market? And what happens when the EU decides that all this is state aid and fines the government? Oh, yes, us taxpayers have to pay all over again.

Mark Croucher, Dartford, Kent,

The only thing to get things back on track is a much needed housing crash to enable people on average wages or less to be able to buy their own homes. We do not need Darling Ali to play monopoly.

charlotte, cambridge,

"[Mr Darling] wants to do everything he can to help people get on the property ladder."

Well how about allowing house prices to fall to a sensible level rather than keeping them artificially inflated??

Pete, Birmingham,

This is absolutely scandalous and inept. This is the last thing the government should be asking the BoE to do. A huge injection of easy cash is not what the housing market needs, instead the slowdown should be allowed to run its course so that property prices can come down to a sensible level. Perpetuating the housing bubble will just prolong the agony when the crash eventually does happen, and it will.
The government is just clutching at straws hoping this will not happen until after the next general election.
Instead, the BoE should be raising interest rates to protect the economy from inflation and the currency from devaluation.

Brian Roberts , Plymouth, Devon

So the government policy is to keep exorbidant house prices despite the IMF sating they are too high. Very sound, very sound policy Mr Mcbroon. So it's higher inflation than the government admits, higher taxes mainly by stealth and a grim future for the majority of the people in the UK.

As usual it's the people who pay for the past and now current government mistakes.

Miller, Redhill, Surrey

So Darling wants house prices to rocket still further to save the scam called New Labour.

Just unbelievable.....utterly unbelievable.

As many have said before - the UK is built on debt, the BoE knows it and has caved in.

They, in all fairness, have no choice but to cave is. They (BoE) are not independent at all. Just another old boys club and when they are dead and buried they won't be thinking about the mess they have left behind for the next generation. What with Blair lying to the people and Brown pushing them over a debt free fall cliff I wonder just what the end will be? It is no wonder over 300,000+ educated and hard working people leave every year.

Well done New Labour!

Paul, London, Canada

Unprecedented, unjustifiable and potentially illegal. I hope that there is a full legal challenge to this as the government must not be allowed to get away with it. Expect another run on the pound with this inflationary policy and food and fuel prices to go hyper.

Paul, Coventry,

The government cant stop the 'run-away train' called DEPRESSION. This is just a desperate gesture of a government with bankrupt ideas trying to stay in power.
The FSA rang the alarm bells in Jan 2003. It described as unsustainable the escalation in mortgage debt. And what was the Treasury doing about the borrowing binge? Gordon Brown failed to take effective action against inflationary pressures coming from one asset that mattered in his campaign to deliver stability. The official outcome was the appearance of inflation under control. This was a statistical illusion that was exploited for political gain by the chancellor in 2003. The UK economy escaped a formal recession in 2001 because Gordon Brown had imprudently allowed the population to neglect the need to save and invest.

Louis Blanc, Liverpool, UK

Have they never heard of the saying "when you've dug a big enough hole, stop digging!"

Neil, Birmingham, U.K

Why should the government use taxpayers money to shore up inflated property prices which have no correlation with household income and beyond the reach of most first time buyers.

John rifton, coventry,

For years everyone has been complaining houses are too expensive, including the government. Why is the government now so intent on propping prices up?

Eric Downer, HONITON, UK

Darling's decisions seem light on logic, but remember, there is an election round the corner.
It's tax payers money to mainly shore up the Labour party, not so much the banks.

Pike, Cornwall,

I believe Halfords have some dual piston air pumps which will be as much use as this money for reinflating the housing 'boom'.
We have had the boom, now its bust time. Bet the banks cannot believe it. £50 billion for a load of crocked loans.
I've got some rubbish in my shed, wonder how much darling will offer for that.

rob, derby, uk