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Debate House Prices
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The Last 5 Major Uk Recessions
Comments
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in the short term it will during a global recession?
Where will the inflation come from?
:wall: The rising cost of imported goods due to a collapsing pound :wall:--
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 -
If people are so overburdened with borrowing that they can't service their debts at remarkably low base rates of 4.5% then I very much doubt that base rates of, say, 2.5% are going to magically put their affairs in order.
They will start to notice as the cost of all those imported things rise though.
Yawn....................................
Did I say anything about that. Is everyone paying base rate for loans?:rolleyes:
I think you have forgot what you are on about. You talk about inflation going up, then deflation.
Rates should go up, then rates should go down.
PS you know that historicaly rates are not low they have just been very high for the last 30 years. I will point you in the right direction again. bottom of the page.
http://www.bankofengland.co.uk/statistics/rates/baserate.pdf
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I said we'd get stagflation. Thought there's an ultimate risk of hyperinflation is controls are totally relaxed.
You seem to be of the opinion that inflationary pressures will magically just disappear off the radar with the onset of recession.
Yup, radar being a piece of equipment that can only measure the short term.'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 -
:wall: The rising cost of imported goods due to a collapsing pound :wall:
There, you are saying it again, let us have it right: is inflation going to go up or down over the next few months?'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 -
The colapse of the £ will be no where near the price of colapsing comodoties.
AGAIN FOR OIL TO BE THE SAME COST AS IT WAS THIS SUMMER IT WOULD HAVE TO BE £1 = $0.8
The oil price this summer was a short-lived, anomalous spike due a speculator driven bubble.
Given that the whole thing happened within about a 9-month time window, the inflationary effects were very much mitigated so the 'benefit' from the return to lower prices comparable to 12 months ago is likely to be very much less than you imagine.--
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 -
:rotfl:The oil price this summer was a short-lived, anomalous spike due a speculator driven bubble.
Given that the whole thing happened within about a 9-month time window, the inflationary effects were very much mitigated so the 'benefit' from the return to lower prices comparable to 12 months ago is likely to be very much less than you imagine.
So if it had not happend we would not have any inflationary presure.:rotfl:
It is now cheaper to fill up my car than last year do you drive or have you got a magic carpet?:rolleyes:0 -
There, you are saying it again, let us have it right: is inflation going to go up or down over the next few months?
In the next few months I think it will remain stubbornly high - that's around 5% on the heavily massaged (to be as low as possible) CPI.
Remember - inflation staying the same just means prices aren't going up at a faster rate, they are still going up.
Tell me - when do you envisage real world prices actually starting to fall across the board to less than where they were they were a year ago?--
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 -
Now, the UK is a major importer and 00's style stagflation is just going to see the spending power and standards of living of the population erode, very quickly. Higher prices on loads of things but not higher salaries and a hell of a lot more unemployment than the 70s. e.g. Retail is (was) massive and it will be hard hit
Stagflation is definately on the cards for the Developed :rotfl: World.
Japan was still a major exporter, and the Yen devalued, yet Japan still hasn't emerged fully from Stagflation.
The Importing Developed :rotfl: Nations will be harder hit than Japan ever was by Stagflation.
The chances of significantly higher Inflation, and Hyperinflation even in the short term are very slim IMHO.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Look if rate are 5% and they lower them to 4% that is a 20% cut.
Rates are low based on the amount of debt the more you lend the cheaper in theory it becomes. (did you not do economies of scale;) ) not saying this is good.
A cheaper debt to service is a cheaper debt to service!
Stop going on about 07, that is amounts of lending not the type or the rate it was lent at.:rolleyes:
More to the point if they actually spend the mortgage savings, they will inject stimulus into the recessionary economy.'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
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