14 April 2009

Heart Rending ...

A desperately sad story has just surfaced in the Daily Mail.

"Location, Location, Location star Phil Spencer's property firm went bust owing over £500,000."

"Television property expert Phil Spencer's company owed more than £500,000 when it went into administration.

Papers signed by the Location, Location, Location star reveal the full extent of his company's financial turmoil.

When it folded in February Garrington Home Finders owed creditors £576,052."

Like tens of thousands of others in the UK, Phil took advantage of complicated economic conditions brought about by New Labour's running (ruining?) of the economy to try and become rich. The failed economic polices meant that inflation in the housing sector led to people buying houses which rose in price, this meant that they could borrow more money on the basis of this rise in price. On paper, they became very rich indeed.

This was anticipated to go on forever.

Sadly, for reasons too difficult for most people to understand these economic conditions had to come to an end.

The government are currently doing all they can to try and get lending levels back to normal. They have transferred fantastic amounts of money from the taxpayer to the financial sector in order to keep Phil's delusion alive but this has failed miserably. Sadly, the taxpayer will not be able to get their money back for this folly.

Of course, it isn't only Phil who behaved in this way. Down at the repossesion courts, Mr Justice Gerlis said, "[w]hat is also intriguing is that a substantial number of defaulting borrowers are those who have taken out mortgages in the last couple of years, including a sizeable number who have not paid a single penny since the mortgage was taken out." (It isn't clear whether or not they were taking advice from Phil and his tv partner, Kirsty).

If only New Labour could take more taxpayer's money in order to help these people who had no interest in making any mortgage loan repayments.

On a happier note, Phil's co-presenter, Kirsty, from 'Location, Location, Location' a television series which purported to show people the contribution that they could make to society by becoming property developers is expected to be financially sorted.

She comes from a monied aristocratic background.