22.03.2013 - Should the treasury take housing risk?
If house-buyers were to take up all the guarantees on offer from the Treasury, some 130bn of new mortgages would be created - all of them with the home owners providing only a sliver of equity, and taxpayers on the hook for a little less than three quarters of losses, in the event that the price of the relevant houses were to fall 20%. The Treasury estimates the potential or contingent liability for taxpayers at some 12bn...............................................Full Article: Source
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