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    Welcome to The Gods That Failed blog.

    Our new book was published on 5 June by The Bodley Head, and we've set this up to give ourselves, and the public, the chance to learn about and discuss the economic crisis that we're currently all facing.

    It's high time people realised how and why we've reached the state we're now in. The Gods that Failed argues that we need a new system: instead of an increasingly risk-prone, privatised, profit-driven economic model overseen by a largely unaccountable and speculation-obsessed elite, we need an economy that is run and regulated in the interests of ordinary people.

    Thousands trapped in negative equity

    Posted by admin on August 1, 2008 at 12:46 pm

    The latest development in the rapidly deteriorating housing market is the news that many homeowners now have mortgages that are worth more than the value of their homes. These owners, granted 90 to 100% mortgages at a time when bankers were more than happy to give away cheap money, have found themselves in a situation where paying off their mortgage would leave them significantly out of pocket.

    The BBC reports today that 3 million people are now living in negative equity.

    There are also reports that some homeowners in America are actually abandoning their homes to repossession because, while they can afford to keep up on their mortgage repayments, if they continue to do so it will end up costing them much more than their property is worth.


    1. Sabine K McNeill says

      Dear Editors

      Aren’t home repossessions, bankruptcies, overindebtedness and suicides worse than negative equity?

      Could it really be that the procedures in place can’t be stopped?

      We’re trying with a “Public Credit Petition” championed by Austin Mitchell MP and targeted at the Treasury Select Committee. Any chance of giving it your attention via http://tinyurl.com/666rwd ? Many thanks in advance!

      With best wishes for more and more success of your most remarkable book,

      Organiser, Forum for Stable Currencies

      August 23rd, 2008 | #

    2. David Schwager says

      i think the situation in the UK is very temporary. For the UK has a substantial amount of consumers in need of houses. And the house market will soon be out of this puddle. I believe the Real Estate companies are going to think of a way to relieve the Housing market some how, either through political,or economic controls. So the booming prices in the UK will no longer surge. But in reality, UK is just too small to accomodate such a number of people emmigrating and moving into the UK mainland. To be honest, I have a strong impulse for the British government to using less space for mansions and villas, and start thinking about the people from the middle and lower classes, their livelihood and housing problems. And this is all due to the British goverment! the current price movement is due to the economic recession in the US, which is affecting the universal community. But let’s think on the bright side. The recessions in such strong countries will benefit my country, which, wants to become stronger!

      September 7th, 2008 | #

    3. Tony Wright says

      Referring to people having to pay back a mortgage that is worth more than the value of their house is not a new phenomenon. I bought a house in Wales in 1973 valued at £4,000 - if I had paid back the whole mortgage over the period stated I would have back £12,000. That is the mechanism of compound interest and it is how the money men exploit the rest of us. We need a whole new set of rules and rituals in our worship of Mammon!

      December 30th, 2008 | #

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