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The Last 5 Major Uk Recessions
Comments
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Or until First Time Buyers have saved sufficient deposits and if it works out cheaper than renting?
Yes, probably mid 2009.'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 -
JayScottGreenspan wrote: »Good point. If inflation doesn't magically fall away as everyone is predicting (hoping!), then the UK is stuffed.
Things don't magically happen, inflation will fall but that doesn't preclude it raising its ugly head at a later date.'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 -
JayScottGreenspan wrote: »Good point. If inflation doesn't magically fall away as everyone is predicting (hoping!), then the UK is stuffed.
I can't see why not even the weak £ as not fallen by as much as commodities. It would take the pound to be £1 = $0.8 for oil prices to be the equiverlent of what they were in the summer.
And their will not be much scope for wage inflation etc.0 -
JayScottGreenspan wrote: »Good point. If inflation doesn't magically fall away as everyone is predicting (hoping!), then the UK is stuffed.
Or if it doesn't fall as sharply/quickly as they think it will.
Given the extent to which inflation was ignored during the bubble, it's worrying that TPTB are still ignoring it.
The global recession is bound to bring about overall deflation of commodities but if your currency collapses that's not really going to be much of a benefit to a country which has a massive balance of trade deficit, like the UK.
In time it will help build the export industry but that doesn't happen overnight and if the recession is truly global then exporting your way out of it isn't so easy anyway.--
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 -
Yes, I do. With slashed interest rates, we're going to be like a banana republic in a few years' time with rampant inflation.kennyboy66 wrote: »With this in mind, does anyone really think rates should go up ?
p ?
P.S. Your statistics are meaningless as they take no account of the inflation rate during each given period.Krusty & Phil Madoff, 1990 - 2007:
"Buy now because house prices only ever go UP, UP, UP."0 -
Or if it doesn't fall as sharply/quickly as they think it will.
Given the extent to which inflation was ignored during the bubble, it's worrying that TPTB are still ignoring it.
The global recession is bound to bring about overall deflation of commodities but if your currency collapses that's not really going to be much of a benefit to a country which has a massive balance of trade deficit, like the UK.
In time it will help build the export industry but that doesn't happen overnight and if the recession is truly global then exporting your way out of it isn't so easy anyway.
Looks like an ever so subtle repositioning by !!!!!!.'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 -
ad44downey wrote: »Yes, I do. With slashed interest rates, we're going to be like a banana republic in a few years' time with rampant inflation.
P.S. Your statistics are meaningless as they take no account of the inflation rate during each given period.
Looks like the world currency is going to be bananas because most major nations are or will be slashing rates.'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 -
Looks like an ever so subtle repositioning by !!!!!!.
No - it's restating what I've been saying which you'd know if you actually read what I was posting in the past.
Is it finally getting through to you?--
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 -
Or until First Time Buyers have saved sufficient deposits and if it works out cheaper than renting?
That's what I don't understand about the plan some people have to rent their house out until prices improve.
1.We have an oversupply of rentals in most areas now and rents are dropping.
2. The better quality houses will get rented out, so I assume that will include those properties which have been the LLs own homes.
3.When renters think the house prices are about as low as they are going to go, they will buy (those that can).
4.Then there will be an even greater over supply of rentals and LLs might not get a tenant. How do they meet their full mortgage repayments without a tenant? This is when they are going to sell? When the market is at it's lowest?
RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
Looks like an ever so subtle repositioning by !!!!!!.
Almost. :rotfl:You're missing the point - the BoE can lower rates by as much as they like (with the resulting negative effects like weakening the pound) but it won't actually 'help' anyone except a few people on existing BoE trackers.
The market is telling us that rates need to be higher or at least the same, irrespective of how much we might like them to be lower.
If rates hadn't been kept so low for so long during the boom we wouldn't be facing this situation now and if we ignore the market and employ increasingly desperate attempts to bring lending back to 2007 levels we are going to precipitate an out and out disaster.
I dont think anyone thinks 07 levels means the same rate and as easy to get credit.
It just means the same amount of money available just that you have to jump through a smaller hoop.
I have not got a clue why some as soon as you mention rate cuts it then turns ito 07 this and liquidity that.
A RATE CUT IS NOT TO MAKE BORROWING EASIER OR TO INCREASE BORROWING BUT TO MAKE THE BURDEN LESS ON THOSE WHO BORROWED (MAKING DEFAULT LESS LIKELY);)
One day the message may get through.:D0
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