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WTF?_2
Posts: 4,592 Forumite
Hmmm - the pound is tanking on the foreign exchange market. That is going to push prices through the roof unless it recovers.
Oh yeah, FTSE down over 9% on opening and Asian markets down overnight about 10%.....
Oh yeah, FTSE down over 9% on opening and Asian markets down overnight about 10%.....
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Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
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Comments
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BUY BUY BUY!!!
At this rate, sod buying a house, I can also own the electric company and the water works.... be warned anyone who rolls a double 6
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Hmmm - the pound is tanking on the foreign exchange market. That is going to push prices through the roof unless it recovers.
Oh yeah, FTSE down over 9% on opening and Asian markets down overnight about 10%.....
I think food and oil have dropped by more over the last two months (£ -15% ish oil nearer 40%)
So ok we will not see full price drops but inflation should still come down but just but not by as much as it could of been.
Also as more countries support their banking systems I think they will see their currencies drop.
Don’t forget this week we have dropped a fair bit of bad news, I think we will regain some ground soon.0 -
I think food and oil have dropped by more over the last two months (£ -15% ish oil nearer 40%)
So ok we will not see full price drops but inflation should still come down but just but not by as much as it could of been.
Also as more countries support their banking systems I think they will see their currencies drop.
Don’t forget this week we have dropped a fair bit of bad news, I think we will regain some ground soon.
Oil has dropped by over a third from the peak .... as have the stock markets by almost the same amount. Though could be even more by the time today is over.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
steadysaver wrote: »BUY BUY BUY!!! At this rate, sod buying a house, I can also own the electric company and the water works.... be warned anyone who rolls a double 6
House prices won't be affected by a sterling devaluation, not immediately anyway. If 'proper' inflation creeps in (ie even wages inflate - fat chance) they should benefit.
Prices of anything imported will shoot up however - and we import almost everything these days. Watch for the CPI rocketing over the coming months unless sterling picks up.
The' good' news is that all the major western currencies are likely to suffer the same fate at some time or other. Arguably, the dollar already has and we are just catching up. The Euro will probably be next.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
The' good' news is that all the major western currencies are likely to suffer the same fate at some time or other. Arguably, the dollar already has and we are just catching up. The Euro will probably be next.
How can they all suffer the same fate. :rotfl:
The only real relevance for the UK is £'s relative performance against US $ and to a slightly lesser extent against the EURO.
All commodities are priced in dollars, so that is clearly bad for inflation, however as the price of oil (down 40% against peak in $ terms) is falling faster than the £, the inflation effective will be counteracted.
Almost all other commodities are falling as well, albeit not as fast.US housing: it's not a bubble
Moneyweek, December 20050 -
Just how bad is this going to get. Forgive me if I am wrong but I can`t seem to recall a time when just about everything is tanking all at the same time.0
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Just how bad is this going to get. Forgive me if I am wrong but I can`t seem to recall a time when just about everything is tanking all at the same time.
Its just all the traders having the jitters.
Come monday after a few beers over the weekend and seeing mrs/mr trader the whole world will seem a bit better. They will start to buy up the undervalued stuff. But I think the markets will be around the 4000s for a fair bit. But the £ should claw back some losses.0 -
Just how bad is this going to get. Forgive me if I am wrong but I can`t seem to recall a time when just about everything is tanking all at the same time.
This is just blind panic and as more and more people capitulate, the market is being dragged down to crazy lows.
At some point, the 'big boys' will feel it's the right time to pile in and you'll see an almighty 'bounce'.
The problem is of course predicting the timing of all this. Irrational behaviour can't be predicted. And given the fact that the banking system is so screwed there is a chance, small but perceptible, of a complete financial collapse a la Argentina. So in time the selling could in fact become rational.
Think of a bank run started by a rumour. At first, it's irrational to take your money out. But as the run gathers pace it becomes perfectly rational to get your cash out. Even Mervyn King admitted as much:
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2817746.eceOnce the run starts it was then rational for other people to join in, but it could have gone either way at the outset, it was not inevitable that depositors would queue up on the street to take their money out.
Right now - are we seeing the queue of people to take their money out of the stock market?--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
The 'spivs' have moved on from trying to break individual banks, now they are going to have a go at breaking the country's Treasuries that have backed the banks with floods of £/$/Euro.
FACT, Clown has hugely inflated the GBP money supply to splurge on bailing out the banks and, by forcing BoE to drop rates, has signalled that the usual socialist approach of letting inflation rip to erode public sector debt obligations is now in play.
There was only going to be one possible result of this - an exchange rate crisis for GBP. Soros showed the way to break the BoE, expect plenty more to pile in now.0
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