In his budget yesterday (FT's coverage is below), the Chancellor of the Exchequer (click here for the etymology of this title) announced a £12 billion mortgage guarantee scheme. Why is the UK government so keen to stimulate the UK housing market? After all, it was the exuberance in housing markets which was largely to blame for the financial crisis. The mortgage guarantee scheme is aimed at helping borrowers who don't have enough money to put down a deposit on a house. Are these not going to be subprime borrowers of various shade? Click here to read Robert Peston's view on this scheme.