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Property prices will have stabilised by this time next year. Yes or NO?
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from this, i understand that you're saying that regulation would have done nothing at all to the current issues. banks would have still crashed if we knew the levels and what their debt was made up of.
Banks should have been constrained to mostly lending within their deposit base and balancing the books , instead of using 'New Financial Instruments' to circumvent regulatory control and take much of their borrowing activities off the balance sheets.
Proper regulation would have stopped it happening.--
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 -
Banks should have been constrained to mostly lending within their deposit base and balancing the books , instead of using 'New Financial Instruments' to circumvent regulatory control and take much of their borrowing activities off the balance sheets.
Proper regulation would have stopped it happening.
well that's exactly what i originally said by saying that the whole problem would have been transparent and manageable.
you should have said that you agreed with me instead of replying with such a long rambling post.0 -
pickledpink wrote: »Looks like you'll never be able to buy then doesn't it? Not many mortgage companies would lend to someone of your age - you may as well keep paying for your lodgings.
I'm 37. Do mortgage companies not lend to 37 year olds then?
Really?
TBH, I suspect I'm old enough to be your mother, and in loco parentis, I will therefore tell you to get off the computer now, you naughty girl, and go and do your homework.
Tut tut.
Teenagers nowadays!:p0 -
the general view (not including the HPC mob) was for a inflation adjusted soft landing.
the general view was wrong, the HPC crowd right....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
pickledpink wrote: »Looks like you'll never be able to buy then doesn't it? Not many mortgage companies would lend to someone of your age - you may as well keep paying for your lodgings.
Welcome back PP, see you are as charming as ever.
I notice Carol gets called "bitter" on this board from time to time (including, I think, by you) but I've not noticed her throwing insults around like you do....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
well that's exactly what i originally said by saying that the whole problem would have been transparent and manageable.
No - what you exactly said was:
I was making it clear that I was not "saying that regulation would have done nothing at all to the current issues." Quite the contrary, regulation would have stopped it ever happening.from this, i understand that you're saying that regulation would have done nothing at all to the current issues. banks would have still crashed if we knew the levels and what their debt was made up of.
But you just can't stop yourself from baiting, can you?you should have said that you agreed with me instead of replying with such a long rambling post.--
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 -
Hi, Haven't read all of this thread but I expect that repos will escalate after the 'time out' period that the BS's will be encouraged to grant to those in difficulties and that time will expire by about April/May 2009.
Repos will then be sold off at low prices and that will start the flow of property again, during which time prices will start to move upwards. Mortgages will be then granted to encourage more people to take these repos on (How else will the BS's shift 'em, but with a bit of bribery)
and the ball will start to roll again.
One major question mark is what is happening in the polls and the popularity of Brown at that time."Unhappiness is not knowing what we want, and killing ourselves to get it."Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))Women and cats will do as they please, and men and dogs should relax and get used to the idea.0 -
No - what you exactly said was:
I was making it clear that I was not "saying that regulation would have done nothing at all to the current issues." Quite the contrary, regulation would have stopped it ever happening.
But you just can't stop yourself from baiting, can you?
you've tried to twist it again !!!!!! - you just can't help yourself can you.
my exact words are hereit would have been more transparent if it was regulated, seeing what was coming and be prepared for the 'disappearance' of the cash buffers the banks had.
and then herefrom this, i understand that you're saying that regulation would have done nothing at all to the current issues. banks would have still crashed if we knew the levels and what their debt was made up of.
your rambling post was in reply to my first post - which had no context to my original post.
we agree anyway, so i'm not sure why you're trying to cause an issue or argument here.
leave it !!!!!! - it's the best thing so that the discussion and thread can progress.0 -
neverdespairgirl wrote: »the general view was wrong, the HPC crowd right.
:rotfl::rotfl::rotfl::rotfl::rotfl:'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Our miracle economy of the 00ies was built on the back of the credit created by those 'new finacial instruments'.
Before 2000, the UK banks were loaning their 'own' (depositors) money.
After 2000 they relied on getting cheap credit, generated by 'New financial instruments' principally in the US market, and using that to make lending (including mortgages) cheap and easy in the UK.
So attempting to paint the effects of the US housing collapse (the credit crunch) as some sort of spurious external event that came out of nowhere and took down an otherwise solid economy and housing market is completely wide of the mark.
As AA said "the credit crunch is the house price crash". They are intertwined. The UK housing boom only really happened when stupid financial smoke and mirrors tricks in the US generated so much money that it became possible for our banks to move into borrowing massive sums cheaply on the global market and lending it in the UK to anyone with a pulse.
When that stopped, by definition the UK housing market had to crash - it was predicated on that sort of credit model actually being sustainable.
Surely we have had unsustainable rises in property prices before this 'New fangled' finance vehicle was thought up.
Property prices have ALWAYS risen and fallen and the fact that the stupid lending by the banks caused this fall to be more noticeable and painful this time, doesn't mean that it wouldn't have happened as a matter of course anyway. Trouble is we will never know how long and painful it would have been if different methods were used for financing the mortgages."Unhappiness is not knowing what we want, and killing ourselves to get it."Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))Women and cats will do as they please, and men and dogs should relax and get used to the idea.0
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