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Debate House Prices
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Inflation figures
Comments
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House prices have had it no matter what happens with interest rates. Only generalised strong inflation is going to give them a boost any time in the next 12 months. In the meantime the government is going on a wrecking spree in the cause of trying to restore 2007 (peak of credit bubble) levels of borrowing as a 'cure' for our economic ills - frightening. That's sheer madness, they are making the mess worse.
Agreed - but some of us care about more than HPs. There is the wider economy to consider. Your way would just take us to a deflationary hell. Hopefully with the interest rate cuts, a fiscal stimulus and a weaker pound we will have a little bit of inflation next year - better than a deflationary spiral.0 -
Yep, get in the digs. Why on earth would I want to post gloomy news? I post the news as I see it - it just so happens that it's overwhelmingly bad because the economy is totally screwed and set to get even worse.
It wasn't a dig. A more positive post would have been. Wow - inflation has fallen the most that it has fallen in 11 years. Looks like those guys at the BOE might have been right about the threat of deflation. Good job they cut interest rates 'cos when the full impact of deflation hits in Qtr 2 in 2009 - the impact of the rate cuts will be hitting just in time to help us weather the storm.
Of course things are set to get worse, no argument from me there - but that everything is screwed and we should be full of despair - don't fink so.0 -
setmefree2 wrote: »Agreed - but some of us care about more than HPs. There is the wider economy to consider. Your way would just take us to a deflationary hell. Hopefully with the interest rate cuts, a fiscal stimulus and a weaker pound we will have a little bit of inflation next year - better than a deflationary spiral.
I am concerned about the wider economy - this government is trashing it because the only way forward that they can see is to try to restore credit bubble style lending - it's a stated government policy objective to get lending back to 2007 level which represents the very peak of the bubble.
Houses are going to drop in the next year no matter what anyone does (short of mega inflation). Since I'm now earning Sterling and set to buy a house which will tie me down in the UK, I'm concerned about not seeing the country totally wrecked with Sterling devalued massively and a huge national debt which will have to be taxed out of the general population over the years to come.
This government is making a (very) bad situation even worse.--
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 -
There will undoubtedly be stagflation
Yes, and how we (as both a Government and the general public) respond is the key to how long that lasts.
We don't have a huge savings culture in this country, but we do have a debt culture so the use of targetted monetary stimuli seems to make sense.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
I am concerned about the wider economy - this government is trashing it because the only way forward that they can see is to try to restore credit bubble style lending - it's a stated government policy objective to get lending back to 2007 level which represents the very peak of the bubble.
Houses are going to drop in the next year no matter what anyone does (short of mega inflation). Since I'm now earning Sterling and set to buy a house which will tie me down in the UK, I'm concerned about not seeing the country totally wrecked with Sterling devalued massively and a huge national debt which will have to be taxed out of the general population over the years to come.
This government is making a (very) bad situation even worse.
Hey !!!!!!, you are slipping the hints in left right and centre, are you saying that you have repatriated all your cash to buy a house? If so Good on ya.'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 -
Yes, and how we (as both a Government and the general public) respond is the key to how long that lasts.
We don't have a huge savings culture in this country, but we do have a debt culture so the use of targetted monetary stimuli seems to make sense.
The debt culture is real and has a powerful hold, but is also relatively new.
'When I were a lad' most debt other than mortgage debt was frowned upon. Even hire purchase was mistrusted. Most consumers use of credit was confined to buying from the catalogs which offered payments over 12-18 months for a premium.
Nowadays everyone seems to be up to their necks ... and happy to brag about it. Why not? Low, low interest rates that seem set to never go above 5%, endless amounts of additional credit and no great pressure to pay any of the capital, just cover the low interest.
That culture was unsustainable and had to end sooner or later. This is the beginning of that end but the government seems determined to try to reverse the tide and get people borrowing again like lemmings. Madness. The only way such a policy can 'work' is through massive monetary inflation somewhere down the line to bail them out which will bring even bigger problems in its wake.--
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 -
The debt culture is real and has a powerful hold, but is also relatively new.
'When I were a lad' most debt other than mortgage debt was frowned upon. Even hire purchase was mistrusted. Most consumers use of credit was confined to buying from the catalogs which offered payments over 12-18 months for a premium.
Nowadays everyone seems to be up to their necks ... and happy to brag about it. Why not? Low, low interest rates that seem set to never go above 5%, endless amounts of additional credit and no great pressure to pay any of the capital, just cover the low interest.
That culture was unsustainable and had to end sooner or later. This is the beginning of that end but the government seems determined to try to reverse the tide and get people borrowing again like lemmings. Madness. The only way such a policy can 'work' is through massive monetary inflation somewhere down the line to bail them out which will bring even bigger problems in its wake.
I will be honest with you, I do not know any of my family or the people I know who are 'up to their necks'. I certainly do know anybody who is bragging about it.'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 -
Hey !!!!!!, you are slipping the hints in left right and centre, are you saying that you have repatriated all your cash to buy a house? If so Good on ya.
Happily I haven't repatriated all my cash. Half my savings are still non-sterling, thankfully. I have put plans to move the rest back on hold. (Actually, it's more like 55% of my savings by value, following the events of the last month. I am quite a bit better off in Sterling terms thanks to the recklessness of the government).
When I do buy a house I'm going to be tied into the fortunes of the UK for good - financially and personally. That's why I'd like to see the place not wrecked any more than it has already been even though I stand to gain from the deterioration on a purely financial level in the short to mid term.--
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 -
Perhaps if you weren't so fixated on cheaper mortgage repayments you might be able to think about the wider economy like you hypocritically tell me to do.
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Considering that my mortgage (one house is plenty for me thanks) is fixed until October 2010, it matters not a jot what happens to mortgage rates for me. In fact such is my bad timing that I should just be in time to see rates start to increase in early 2010 when I start looking for another deal.
However having seen millions of jobs go in manufacturing in the last two recessions (partly due to disasterous over-valuations of Sterling), then if the pound slides and inflation falls as well, then that is the best outcome.
If people have to pay more for their skiing holiday (Boris Johnson - telegrapg today) or their trip to Florida, then I won't be shedding any crocodile tears.US housing: it's not a bubble
Moneyweek, December 20050 -
I will be honest with you, I do not know any of my family or the people I know who are 'up to their necks'. I certainly do know anybody who is bragging about it.
to be fair i don't any either - maybe they hide it well.
maybe those that see it may not have a very wide social circle.0
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