***House prices up 1.2% in May***

chucky

ad9898 wrote: »

The money is available to finance the housing market without printy printy, just at a much lower level than 2007. We all know that the market is being supported by unrealistic IR's and QE, yet they are barely able to stop it falling, once those 'props' have gone it will take on another collapse, it's so obvious, even to the layman I would have thought.

well that's what i was insuating - without QE and shoring up lenders balance sheets we'd be in a big mess.

so i'm not unconfident about the future - banks are looking like their able to pay back the bailouts and have started to lend more slowly. it wil only be a matter of time before this increases gradually.

however, if more problems appear i can see us reverting to the October and November days last year. but touch wood everything seems to be ticking along but we still have to be weary of the future.

Graham_Devon

ad9898 wrote: »

The money is available to finance the housing market without printy printy, just at a much lower level than 2007. We all know that the market is being supported by unrealistic IR's and QE, yet they are barely able to stop it falling, once those 'props' have gone, it will take on another collapse, it's so obvious, even to the layman I would have thought.

Will the props go though? Certainly not under a labour government. But theres already talk of more QE money outside of the 150bn.

We bailed out the banks, then bailed them out again.

Will QE just continue?

Interest rates may have to go up, but all it will take is one new government policy for hard working families to stop it affecting mortgages.

I've certainly learnt that this government will meddle no matter what....I'm just wondering what else they would do?

mewbie_2

chucky wrote: »

however, if more problems appear i can see us reverting to the October and November days last year. but touch wood everything seems to be ticking along but we still have to be weary of the future.

I'm weary of the present. :rotfl:

ad9898_3

Graham_Devon wrote: »

Will the props go though? Certainly not under a labour government. But theres already talk of more QE money outside of the 150bn.

We bailed out the banks, then bailed them out again.

Will QE just continue?

Interest rates may have to go up, but all it will take is one new government policy for hard working families to stop it affecting mortgages.

I've certainly learnt that this government will meddle no matter what....I'm just wondering what else they would do?

It can't just carry on, bond markets are getting increasingly nervous, our credit rating is negative at the moment, the printing presses will have to stop at some point, either the government will do it by their own hand or, their hand will be forced, it's either one or the other.

Let's take a look at the sheer insanity that is being thrust upon us, we all know that the housing ponzi scheme was unsustainable in 2007, the government answer is to try and sustain it, not with borrowed money this time, but with freshly printed money, it's going to end in tears, the only issue that is up for debate really, is when ?

mewbie_2

ad9898 wrote: »

Good stuff

Thankyou. After endless mind numbing posts about a 1% up in Merthyr Tydfil or whatever, it is nice to read something a little more sane about the bigger picture.

neil324

Graham_Devon wrote: »

Will the props go though? Certainly not under a labour government. But theres already talk of more QE money outside of the 150bn.

We bailed out the banks, then bailed them out again.

Will QE just continue?

Interest rates may have to go up, but all it will take is one new government policy for hard working families to stop it affecting mortgages.

I've certainly learnt that this government will meddle no matter what....I'm just wondering what else they would do?

Bond markets will strike.

Graham_Devon

mewbie wrote: »

Thankyou. After endless mind numbing posts about a 1% up in Merthyr Tydfil or whatever, it is nice to read something a little more sane about the bigger picture.

Dont worry.

No one can explain exactly how, with no sales in Merthyr in the last 2 months, house prices have gone from YOY figures of -11% in Feb, -5.5% in March and +3.3% in April. That's some serous increases in 2 months when no houses have sold.

It's something for people to say "house prices are rising in some areas" but all the data loks completely messed up. Looks like some kind of error to me.

Wookster

Graham_Devon wrote: »

Will the props go though? Certainly not under a labour government. But theres already talk of more QE money outside of the 150bn.

I think one of the problems is that "success" has not been defined. I'm not sure that we have a definition of what economic growth means in real terms - the last 2 bubbles (tech/ dotcom & property) certainly don't constitute economic growth in my view.

Despite what Rochdale might think, the current deficits are just not sustainable, even in the short term.

Graham_Devon wrote: »

I'm just wondering what else they would do?

Bankrupt us.

StevieJ

Is all this bond stuff the reason why sterling is collapsing at the moment

pickles110564

Graham_Devon wrote: »

I've certainly learnt that this government will meddle no matter what....I'm just wondering what else they would do?

Depends on what the biggest vote winner will be just before they call an election and they are probably stupid enough to wipe out current mortgage debt for everyone that has children.