I agree with Simon, the only reason that Labour want to start a new era of high house prices growth is to win the next general electoion at the expense of the health of this once great nation. Bring on Cameron and end the Brown blunder years

Heeners, Bath,

If the government wants to help people get homes it should start building them, on public land, for cost price. Leave the debt mountain to fester.

Their aim is not to improve the UK housing situation just a return to the credit merry-go-round of yesteryear.

A Harris, Kettering, uk

My only criticism of Mervyn King is that he has shown a softenning on his inflation stance that has caused an inflationary impact by devaluing sterling. He has courage in standing up against pouring billions of pounds into banks with the taxpayer put at risk - that would also devalue sterling.

Steve Marchant, Newton Abbot, UK

Bev, Hertfordshire

Am I assuming you cannot afford your mortgage? Presumably if you want tax payers like me (who are priced out a home by ridiculous greedy people) to subsidise your mortgage then your home will also become public property and you won't mind letting me have the spare room?

Melanie, Wales,

Money should be lent sensibly. It doesn't take a genius to know you don't lend £500k to Kyle and Bratney living in a trailer park and expect to be repaid.

Equally the BoE should not panic again and raise rates which will only effect inflation after there are no jobs due to a dead economy.

Rob, Bradford,

What happened to BoE independence? Message to Gov't - stop wasting taxpayers money. If there is any money to be had, start creating jobs that will add to the wealth of the nation. Furthermore, look at sterling now there is a hint of a rate cut. Inflation will rocket without higher interest rates

Nan, Reading, UK

King is right about letting the housing market correct itself.

However re inflation his head is in the sand. In 2007 the UK exported $441b and imported $617b. So as he is trashing the pound by not increasing interest rates how can inflation magically drop lower?

Fred, Moray, Scotland

King is out of control. He needs to be reminded that he acts for the people, not in opposition to the government who is trying to do something constructive for the people. King is always over stepping the mark with what he says and is power-mad. He should be brought to heel by Brown immediately.

Bev, Hertfordshsire,

King's long-term common sense makes a mockery of Darling's short-term foolishness. At the same time, as far as the current government is concerned, the shorter the term the better.

Erwin, London, UK

'sub-prime government' - LOL.
When will they finally realise how despised they are?

Ian, London,

Labour knows its making a big mistake but all its interested in is tax , higher house prices equals higher taxes

H Thomas, London,

King is right. My tax contributions are not there for bailing out greedy/foolish bankers/borrowers.

If this sub-prime government wanted a stable housing market it should have acted 10 years ago before igniting an unsustainable housing boom.

Michael, Glasgow,

Thank goodness we've got Mervyn King to stop the idiotic ideas coming out of the Chancellor (& his puppet master). Labour caused the stagnating property market to stall by speculating about a Stamp Duty holiday & now wants to push 'go' again by guaranteeing loans. How many times: ITS NOT YOUR MONEy

Donna Walker, Effingham, England

Get this sorry excuse for a government out of office!

Pat, Limasssol, Cyprus

At last, Mervyn King actually stands up to the government on the issue of the underwriting of mortgage debt by the taxpayer.
The next logical step is for the Bank of England to increase interest rates substantially to bring inflation back under control and save the economy.
You can do it Merv.!

Allan, Inverness,

At least someone seems to have an idea how this credit crisis should be handled, and it's not our bumbling government. Now King needs to get tough on interest rates before its too late. hike now!!! I'm moving my savings out of sterling, rate is too low considering UK inflation levels, need 7% now!

duncan, milton keynes, england

Mr King is 100% right. The reason the mortgage market has stopped is that it was based on made up numbers that was unsustainable. Its time the goverment stopped making policy to get them into back power and did the best for the country, i.e. use out money to lower taxes so we can afford to eat !!!

John, Northampton, UK

My congratulations to Mr King for seeing this proposed plan for what it is, a political point scorer which would damage the UKs wellbeing. Pumping money into the mortgage market would be throwing fuel on the now cooling fire. The housing market should not be re-inflated.

Phil, Welwyn, UK

Finally the governor has shown some balls. He is exactly right why should the tax payer fund a continuation of this joke in the housing market.

We MUST allow the free market to determine what happens to the housing market, if this means it crashes 70% then that is what must happen.

Steve, Edgware, UK

At last, someone asociated with this Government talking sense and spelling out the facts.
It's the banks and building societies who got themselves into this mess and if they want to rebuild then they must do it through attracting savings at the expense of inflated salaries, bonuses and dividends.

A.Williams, Cradley Heath,

This does demonstrate how out of touch the government is with the voting public.

They want to redecorate the ballroom.

We want to patch the holes in the life boats.

The govt could win the next election, but to do this they have to show that they are responsible and in control.

jeremy, hassocks, sussex

King is right much of this downturn has been due to 'gambling on the housing market' the bubble has been kept going longer than it should by the Goverment. Houses are for living in and people had better get used to it

sheila, london, uk

Michael Oliver is spot on. Right now we are in a Sterling crisis, having already fallen against the Euro and now we are retrenching against the Dollar. The only outcome of this is inflation, so time to put interest rates up - they should be at 7%.

Mike Livingstone, Reigate, UK

At last some sense is in sight.

Now King can turn his attention to sort out inflation, where we need some strong medicine at the moment. And not Darling's "support the house prices at all costs" policy, which is sending us back 15 years of economic development.

bob travels, stevenage,

Mervyn King is write, the housing market should be allowed to reach its natuaral floor with no intervention. Greed irrisponsable lending and borowing on the part of individuals, banks and government is the cause of exessive house values.
Those many fingers in the pie should be allowed to burn

bernard armstrong, bakewell, uk

The Government shoud cut out the middlemen and offer mortgages to the public themselves. Problem Solved.

John, London,

Does anyone believe in Mervyn 'Mystic Meg' Kings predictions?

Andrew, Nottingham, England

This is why poiticans needing controlling. I wish King could veto the rest of Brown's give aways to try and win votes

James, London, UK

King must know that critical rate decisions by the MPC are being made ,based on inflation data which,to say the very least ,is severely understated for the average working person and retirees. No wonder the UK is in trouble.
Flawed data is a menace for good decision making.

jackie, paphos, cyprus

No matter what novelties Labour try to come up with, they will remain unelectable for decades to come.

As for Mervyn King and the MPC, as "world authorities" can they really believe that having precipitated a collapse in sterling, the peak in inflation is merely a couple of months away?

Michael Oliver, Singapore, Singapore

Good on King. Don't let the state of the Labour party affect the good of the long term economy. The fact that Labour wants to hike house prices back up shows they don't represent...those wanting to buy property, middle and lower classes, men (bigoted labour don't like men), and indigenous whites.

Simon, York , England

Professor Mervyn King is a world authority; unbelievably well qualified, and tried and tested as an economist and central banker.

Darling is just another politician promoted beyond his competence.

Dr Richard Bruce, Cape Town, South Africa