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Debate House Prices
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Downturn points to cut in rates
Comments
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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.
China, tokyo all going in to recession, half of the toy companies in china have already gone bust down to the downturn.
It is a global market, one suffers we all suffer.0 -
'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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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.
Do you know what the irony is? I think we have the highest rates in the developed world.'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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:rotfl::rotfl::rotfl:kennyboy66 wrote: »It could be deja vu all over again.'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 -
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:
Why the refusal to answer a simple question.
It is funny the cheap credit argument is the cause, why is every economy not booming?
Is the worry the rate cut will refuel the housing fire?
I am not naieve enough to think so but if some of you do, I would look at the fact that rates are low but you can't borrow unless you are a safe bet!
If that means boom to you and the start of the cycle best buy now.:rolleyes:0 -
i agree that they will start to be offered again - many people have a problem with the 100% and 100% plus mortgages, i personally don't.
the concept behind them was that they were for a particular type of 'younger' person who was starting in a good career that would see them progress in that career and gradually be earning more through their working lives and be able to pay the debt.
I don't like the idea of 100+% mortgages. It doesn't hurt to learn how to budget before buying a house and have the savings to pay for the moving in costs.when these mortgages are sold outside of these specifics there are obviously problems.
Sometimes selling mortgages within the specifics still causes problems. I hope the banks learn from the mistakes that B&B and NR made.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 -
Why the refusal to answer a simple question.
It is funny the cheap credit argument is the cause, why is every economy not booming?
Is the worry the rate cut will refuel the housing fire?
I am not naieve enough to think so but if some of you do, I would look at the fact that rates are low but you can't borrow unless you are a safe bet!
If that means boom to you and the start of the cycle best buy now.:rolleyes:
Sometimes I think Realy is being deliberately obtuse.....
Did you notice how just about all the global economies WERE booming thanks to cheap, plentiful credit?
And how the end of the boom and the end of the cheap, plentiful credit seemed to coincide?
Just a coincidence, I'm sure.:rolleyes:
The boom was cheap, plentiful credit. The two are inextricable.
By the way - governments/central banks lowering headline interest rates does not constitute cheap, plentiful credit any more. The market rate split away from the central bank rates over a year ago now precisely because the central banks had priced rates too low to reflect the real world.--
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 -
MissMoneypenny wrote: »I don't like the idea of 100+% mortgages. It doesn't hurt to learn how to budget before buying a house and have the savings to pay for the moving in costs.
Sometimes selling mortgages within the specifics still causes problems. I hope the banks learn from the mistakes that B&B and NR made.
I was always tought if you can't afford it you cant buy it.
I dont think you should buy a house outright but you should at least be able to put towards the loan or simply you cant afford it.
100% and + is madness as it is clear you can't afford it.0 -
Sometimes I think Realy is being deliberately obtuse.....
Did you notice how just about all the global economies WERE booming thanks to cheap, plentiful credit?
And how the end of the boom and the end of the cheap, plentiful credit seemed to coincide?
Just a coincidence, I'm sure.:rolleyes:
The boom was cheap, plentiful credit. The two are inextricable.
By the way - governments/central banks lowering headline interest rates does not constitute cheap, plentiful credit any more. The market rate split away from the central bank rates over a year ago now precisely because the central banks had priced rates too low to reflect the real world.
Oh !!!!!! a charmer as ever.
It is the end of plentiful credit not cheap.
Are rates far away from historical norms?
Here is that link again!
http://www.bankofengland.co.uk/statistics/rates/baserate.pdf
(Bottom of the page i am sure you remember)
I think you think history is the last 40 years.
If intrest rates were 15% and the money was still lent to people with no job at 130% do you think we would not be in the same mess?:rolleyes:
PS My credit is cheap as I am seen as a safe bet! so you are wrong on that.0
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