Thank goodness for Mervyn King!

space_rider

dr beat, this is why I responded.

And here's question: how many self certs and 100% mortgages and mortgages that exceed x 3.5 salary have you sold in your entire career?

Mypoint was no one made anyone do any of those things. So now you have someone else to have a go at.

Dithering_Dad

Dan: wrote: »

He dosen't think that far ahead.

Not many of them do. Some posters seem to revel in the fact that the economy is going down the toilet and yet feel that they're immune because they live in rented digs and have a few thousand quid saved up for their house deposits.

They seem to feel somehow better off than joe bloggs in his house. The thing is that most of us bloggs have a few £k for a rainy day, we also have equity that we can get hold of in an emergency. Finally, it's a lot harder to get us out of our houses for not paying our mortgages than it is for them them to be turfed out of theirs for non payment of rent. We can have payment holidays or go interest only, I can't see their landlords going for either of those options.

The reality will hit them if they lose their jobs and suddenly their deposits start to dwindle. Not much chance of picking up a bargain house in a crash when you have a small deposit and no job (no job = no mortgage).

Odd then to revell in people's misfortunes, when they may very soon become yours.

drbeat

space_rider wrote: »

dr beat, this is why I responded.

And here's question: how many self certs and 100% mortgages and mortgages that exceed x 3.5 salary have you sold in your entire career?

Mypoint was no one made anyone do any of those things. So now you have someone else to have a go at.

oh space rider,

I would understand your argument if my post had said HOW MANY <enter mortgage type here> HAVE YOU MADE PEOPLE AGREE/SIGN-UP TO IN YOUR ENTIRE CAREER?

...but I didn't... :rotfl:

Either you're trying to save face or you have totally misunderstood what I wrote. Did you say that you worked at a school? Please don't tell me you're a teacher...and not one of english?

I hope you enjoyed your "go".

brit1234

The main thing is that the Bank of England has said it is not going to bail out the stupid actions of the banks.

This means they will lend better which in turn will result in lower house prices. Lower house prices are good for the vast majority of the population except the buy to let property speculators who helped fuel this problem in the first place.

I welcome the return of sensible lending.:j :beer: :T

dopester

Dan: wrote: »

As long as house prices fall, who cares about peoples jobs.

A lot of the jobs shouldn't have been created.

Those jobs were only brought in to existence due to the fuel of vast sums of easy money for years due to complex financial instruments which have been proven to be TOXIC, unsustainable, and have brought banks losses on a crippling scale.

If you want to be the cheerleader for such a corrupted system then do so. It seems you love all the fake-jobs brought in to existance with the failed exotic £$ multi-billion CDOs and the like, which supported legions of Estate Agents and Mortgage Advisers, but it is not based on any solid foundation for economic prosperity.

mewbie_2

Dithering_Dad wrote: »

Some posters seem to revel in the fact that the economy is going down...

I agree.

Be careful what you wish for.

Many people are desperate for house prices to return to normality, this would be a good thing. However, the associated recession will not just target the 'rich', but will be indiscriminate in its choice of victim. It may well be that the poor suffer more, they usually do.

dopester

mewbie wrote: »

I agree.

Be careful what you wish for.

Many people are desperate for house prices to return to normality, this would be a good thing. However, the associated recession will not just target the 'rich', but will be indiscriminate in its choice of victim. It may well be that the poor suffer more, they usually do.

Of course they !!!!!!!g will. It will be a right horror show for both rich and poor - and more so for those of any standing who have their wealth trapped in property. And lets be honest... the poor in this country haven't done badly past 10 years.

And woe... some people might have to cutback after years of having money or credit to buy near any purchase they want when they want - where it be a new X-Box, TV, flash car, holiday abroad.

We're entering deflation and a severe economic downturn worse than anything in living memory. You're having a laugh if you think by not discussing the potent mix of issues the UK economy is up against is somehow going to make it all go away and make everything better. At least I'm prepared for it.

mewbie_2

I didn't think me of all people would end up arguing with a bear, I was trying to make a single simple point about recession not doing anyone any favours, but OK if you insist.

dopester wrote: »

Of course they !!!!!!!g will. It will be a right horror show for both rich and poor - and more so for those of any standing who have their wealth trapped in property. And lets be honest... the poor in this country haven't done badly past 10 years.[/quote]
I don't think it will be worse for the rich property owners. House goes up by huge amount, house goes down by huge amount - net effect zero. And the poor always do badly, that's why they are called 'the poor'.

Dopester wrote:

And woe... some people might have to cutback after years of having money or credit to buy near any purchase they want when they want - where it be a new X-Box, TV, flash car, holiday abroad.

And lo!.. I am sure lots of people will cutback, and there will be many more people who haven't indulged in credit, or bought the latest flatscreen whatever, that will also have to cutback. Some of the poorer members of society unfortunately have nowhere to cutback.

Dopester wrote:

We're entering deflation and a severe economic downturn worse than anything in living memory. You're having a laugh if you think by not discussing the potent mix of issues the UK economy is up against is somehow going to make it all go away and make everything better. At least I'm prepared for it.

At no point in any of my posts ever have I suggested not discussing these subjects. I am a confirmed bear, I believe we are about to enter recession (bad thing) and continued falling house prices (good thing).

However if you want to have a go at me because I am not presenting the right 100% bear message then carry on.

dopester

I wasn't particularly having a go at you. Just letting you know I was aware of the pain and misery that many have and many more will encounter in the future as the economic downturn bites.

Also I didn't swear, a variation (rigging with an f) which is censored apparently. And brought on more by watching a late 2007 documentary on YouTube where the millionaire property magnates were all bullish to the extreme about buying in 2008, and now find themselves hoping desperately they can offload their current portfolio at -20% or risk total ruin.

I'm just wary of using the poor as a some sort of defence that a downturn should not be allowed to happen - as though it can be stopped. With a few exceptions, I think the poor have had it really good in this country.

Even the unemployed get free healthcare, and money towards housing, and an allowance which is fine for food and the very basics. And there has been opportunity galore to work and save even for anyone of very low skills. I'm not attacking the poor as a whole, but the poorest of society tend to utilise their time negatively and indulge in negative practices. And in most cases, even today's poor enjoy a standard of real consumption many times higher than that of the rich of a few centuries ago.

Although if you mean honest hard-working people who find they lose their job and income in a downturn.. then yes, it is unfortunate, but more and more likely to happen... unless you know how to bring back a near worldwide economic recovery when there are so many forces of contraction in play ?