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Debate House Prices


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Downturn points to cut in rates

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Comments

  • Realy
    Realy Posts: 1,017 Forumite
    alared wrote: »
    It`s a bit ironic that the BoE looks like doing exactly what has got us into this mess in the first place LOW interest rates.(cheap money,hence debt)

    :rolleyes: Rate rise= massive recession mass ununployment
    Rate cut = Some hope for businesses.

    You think the new low rate will cause a massive infux of borrowing. Best buy now.:rolleyes:

    It was loose lending not the rate of interest that caused the credit cunch!
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    alared wrote: »
    It`s a bit ironic that the BoE looks like doing exactly what has got us into this mess in the first place LOW interest rates.(cheap money,hence debt)

    Just the ticket in a recession.
    '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 Thatcher
  • alared
    alared Posts: 4,029 Forumite
    Loose lending was caused by cheap money and everyone`s greedy fingers in the housing pie.

    Cheap money
    high property prices
  • alared
    alared Posts: 4,029 Forumite
    StevieJ wrote: »
    Just the ticket in a recession.

    Cheap money has caused the recession.
  • Realy
    Realy Posts: 1,017 Forumite
    alared wrote: »
    Loose lending was caused by cheap money and everyone`s greedy fingers in the housing pie.

    Cheap money
    high property prices

    No loose lending!
    If the money is cheap but it wont be lent to you if you are not credit wothy or too risky you can not buy a house.

    Average historical base rate is around 5% it is just that the last 40 years interest rates have been very high.;)
  • Realy
    Realy Posts: 1,017 Forumite
    alared wrote: »
    Cheap money has caused the recession.

    Oh god it yesterday today. Is there a circus in town.
  • alared
    alared Posts: 4,029 Forumite
    Realy wrote: »
    No loose lending!
    If the money is cheap but it wont be lent to you if you are not credit wothy or to risky you can not buy a house.
    /quote]

    Wake up,this is EXACTLY what happened in the USA where CHEAP money was lent to uncredit worthy people and that`s why we are where we are now.
  • Realy
    Realy Posts: 1,017 Forumite
    alared wrote: »
    Realy wrote: »
    No loose lending!
    If the money is cheap but it wont be lent to you if you are not credit wothy or to risky you can not buy a house.
    /quote]

    Wake up,this is EXACTLY what happened in the USA where CHEAP money was lent to uncredit worthy people and that`s why we are where we are now.

    No credit was given to unworthy people with massive risk 130% mortgages to people who had no jobs etc!, sub-prime does not = cheap credit.

    So according to you the rate drop is going to stop house prices falling and fuel a new boom.?:rolleyes:
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    alared wrote: »
    Realy wrote: »
    No loose lending!
    If the money is cheap but it wont be lent to you if you are not credit wothy or to risky you can not buy a house.
    /quote]

    Wake up,this is EXACTLY what happened in the USA where CHEAP money was lent to uncredit worthy people and that`s why we are where we are now.

    Well done this recession was Born In the USA, sod all to do with low interest rates in the UK.
    '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 Thatcher
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    alared wrote: »
    It`s a bit ironic that the BoE looks like doing exactly what has got us into this mess in the first place LOW interest rates.(cheap money,hence debt)

    If they hadn't kept them so stupidly low in the first place, there wouldn't be a problem with lowering them now.

    But it seems that the only idea that our Western governments have for economic progress is to base the economy on copious amounts of credit being available, to be created and managed by a large financial services sector and spent by consumers to boost a sizeable retail sector. Never mind that the actual product we are borrwing to consume is made by someone else meaning there's next to nothing underpinning the credit/money that we are creating.
    --
    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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