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Debate House Prices
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Inflation figures
Comments
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setmefree2 wrote: »When was the time when the economy was running perfectly? It doesn't - it's too complex and it's run by politicians who are only in power for cycles of four years.
So what am I supposed to do, spend my whole life chewed up with angst, full of rage, that whatever government which was in power didn't run the economy absolutely perfectly. Life's not perfect and who ever told you it was?
No-one expects the economy to run perfectly all the time but we are in for a massive recession for which we are ill-prepared as a result of years of complete economic mismanagement.
Some of it was global in nature - such as the collapse of the global credit bubble, however even then the British govt. was a willing accomplice and played their part. But much of the massive problems we are now facing are of the governments own making:
* Complete lack of foresight that this current scenario could even happen - quite clearly the government was assuming that it really was an end to boom and bust. Even Mandelson's best spin is that they twigged early this year that something was amiss? Early this year??? Plenty of us plebs could see the writing on the wall back in 2006 or earlier.
* Prolific public sector spending during an economic boom leading to a massive deficit in the PSBR even at a time of record tax receipts. Sheer governmental incompetence.
* Loads of Enron-esque off-balance sheet commitments for PFI and public sector pensions.
* No attempt to reign back consumer spending, quite the opposite in fact, resulting in record levels of personal debt which now threaten to make recovery even harder.
* Ditto the unsustainable housing bubble.
* Laissez Faire approach to financial sector regulation leading to one of the shakiest banking systems in the developed world - with about 50% of mortgages now under government control after massive bailouts.
* Over reliance on the financial services and retail sectors. Both of which now stand to be decimated.
* Spending billions of quid and wasting hundreds of our servicepeople's lives (not to mention being complicit in the deaths of over a hundred thousand Iraqis) in a pointless politically motivated war in order to curry favour with Dubya.--
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 -
Here we go again, we are suffering the consequences of dodgy yankee cdo's, (keep up at the back of the class), although if you meant US lending I will give you a star.
As I explained, our housing bubble was essentially powered by their sub-prime market.
And our housing market went off the boil as early as July 2007 - the direct effects of the US problems such as NR happened mid Sept 2007 and mortage availability started to constrict Feb 2008 - so even if we accept your utterly false and misguiged premise that the events in the US were just some completely extraneous and arbitrary event that came along and messed us up, there's no excuse.--
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 -
kennyboy66 wrote: »Consumer price inflation tumbled far more rapidly than expected in October to an annual rate of 4.5 per cent from 5.2 per cent the previous month, implying that prices may be falling even faster than recent estimates.
A drop in inflation rate does not mean that prices are falling.Happy chappy0 -
But much of the massive problems we are now facing are of the governments own making:
* Complete lack of foresight that this current scenario could even happen - quite clearly the government was assuming that it really was an end to boom and bust. Even Mandelson's best spin is that they twigged early this year that something was amiss? Early this year??? Plenty of us plebs could see the writing on the wall back in 2006 or earlier.
* Prolific public sector spending during an economic boom leading to a massive deficit in the PSBR even at a time of record tax receipts. Sheer governmental incompetence.
* Loads of Enron-esque off-balance sheet commitments for PFI and public sector pensions.
* No attempt to reign back consumer spending, quite the opposite in fact, resulting in record levels of personal debt which now threaten to make recovery even harder.
* Ditto the unsustainable housing bubble.
* Laissez Faire approach to financial sector regulation leading to one of the shakiest banking systems in the developed world - with about 50% of mortgages now under government control after massive bailouts.
* Over reliance on the financial services and retail sectors. Both of which now stand to be decimated.
* Spending billions of quid and wasting hundreds of our servicepeople's lives (not to mention being complicit in the deaths of over a hundred thousand Iraqis) in a pointless politically motivated war in order to curry favour with Dubya.
Other than that................what have the Romans ever done for us !!!!!!! :rotfl: :rotfl:'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
As I explained, our housing bubble was essentially powered by their sub-prime market
P.S. Their sub-prime market started long after our housing bubble started to inflate.
There are plenty of others to blame without bringing in the Septics'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
tomstickland wrote: »A drop in inflation rate does not mean that prices are falling.
Indeedy. Even zero percent inflation just means prices are staying the same as they were a year ago, like most people's salaries.
But don't let that get in the way of the bulls deluding themselves. I think we're seeing some sort of mass hysteria and desire to be optimistic as well as a fair bit of antagonism. Possibly we are seeing our herd of resident bulls going between denial and anger.--
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 -
As I explained, our housing bubble was essentially powered by their sub-prime market.
And our housing market went off the boil as early as July 2007 - the direct effects of the US problems such as NR happened mid Sept 2007 and mortage availability started to constrict Feb 2008 - so even if we accept your utterly false and misguiged premise that the events in the US were just some completely extraneous and arbitrary event that came along and messed us up, there's no excuse.
Started to contrict in Feb 08, why did NR need to be rescued then?'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 -
P.S. Their sub-prime market started long after our housing bubble started to inflate.
It wasn't a pre-requisite for growth in the market - asset bubbles form when the markets spot a profitable money making opportunity and pile in with excess cash in search of good returns. This then has the effect of generating even more 'wealth' which usually gets fed back into the bubble.
Credit fed off housing which fed off credit .... until the bubble could grow no more and sub-prime defaults pricked it.There are plenty of others to blame without bringing in the Septics
There's plenty of blame to go around but dodgy financial instruments in the US were the credit pump that took housing from being an overblown market right into la-la-land irrational bubble territory.--
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 -
Started to contrict in Feb 08, why did NR need to be rescued then?
You were arguing in another thread that NR started the UK housing decline were you not?
UK Housing started to go off the boil (Jun/Jul 07) before Northern Rock (Sept 07) and before the collapse in mortgage availability (Feb 08) . They just made it even worse and sped us along into an out and out housing landslide.--
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 -
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