The Government is treading into dangerous waters ...
I understand that these practices were quite commonly adopted in “previews”. While the past buyers were happy with the outcome in a rising property market, I fear that many buyers would be in dire straits when the market turns around. They might be committing to an overpriced property that they cannot really afford to service and may have to suffer a big capital loss when they have to dispose of the ill-advised commitment.
Volcker has been known to defy the stereotype of a Wall Street insider. A profile in The Week for February 5, 2010, claimed that Volcker doesn't even buy the conventional wisdom that "financial innovation" is necessary for a healthy economy. In fact, he likes to say, "the only useful banking innovation was the invention of the ATM."http://en.wikipedia.org/wiki/Paul_Volcker