House Prices Soar By 10%

chucky

brit1234 wrote: »

:rotfl:

Am I reading the above right?

Sorry but you really need to check what you have written, it makes you sound a little foolish or naive.

Yes we have a lot of inflation through imported goods, the main one is oil. Now more expensive oil/energy effects effects home grown.made items through higher assembly costs and transportation costs making home grown inflation higher as well.

Raising interest rates does effect this despite what you say as this is the method the BOE uses to strengthern the pound. Stronger pound and the better the purchasing power of it and the less foriegn goods cost including oil.

here you go again Brit - jumping in without having a clue and looking a bit simple.

what happens if £200bn 'cash' is parachuted into the UK economy...
will it devalue the pound? you know damn well it did - this is where i am going when i say that inflation can be combated by not engaing interest rates.

fiscal policy is not just about managing inflation by using BOE interest rates. there are other tools.

nembot

ess0two wrote: »

Lets have your documented facts,before we ponder ISTL's.

You want to prove me wrong, google is your friend.

Then again, if I was... you would of posted that by now eh?

brit1234

Please chucky can we go back to inflation and interest rates, my sides are spliting :rotfl:

chucky

dopester wrote: »

Wouldn't people have held that 'political suicide' outlook prior to the late 80s/early 90s house price crash? And yet it still occurred.

I know quite a few home-owners who want the crash, who don't care about the value of their own home falling... to shake out those who are very over-extended in property and bring allow the market to operate without as many artificial influences involved in trying to maintain prices, as there are in this market. If only for the sake of their younger children's (non-home-owning) prospects going forwards.

Yes some of the more innocent types get hurt in the process, who believed in bubble prices were more of less able to remain stable, or were sucked into SO... but a crash hurts people who've made the wrong decisions - you can't protect everyone from their own decisions even if Gordon sings the praises of SO - just as allowing mega bubble inflating to extremes causes a lot of problems for some of the younger cautious non-owners who refused to buy at prices they felt didn't represent value due to prices/correction risks.

the simple answer is that interest rates were much higher then - it's much easier to be paying your mortgage in difficult times at 5% (now) than 15% (then)

you also have to factor in the welfare state now to 1980 and 1970 there is much more protection now than at those times.

chucky

brit1234 wrote: »

Please chucky can we go back to inflation and interest rates, my sides are spliting :rotfl:

they probably are splitting from eating all of those pies...

but it;s a good deflection of going off topic when you don't know what you're talking about. go and have a little think about what removing £200bn of money from the economic system would do to inflation.

go on have a think - i know it's hard but just try

IveSeenTheLight

nembot wrote: »

You want to prove me wrong, google is your friend.

Guess this answers who deals with facts and who deals with speculation

ess0two

nembot wrote: »

You want to prove me wrong, google is your friend.

Nice back track,seems Brit the other village idiot has appeared on this thread.

brit1234

chucky wrote: »

here you go again Brit - jumping in without having a clue and looking a bit simple.

what happens if £200bn 'cash' is parachuted into the UK economy...
will it devalue the pound? you know damn well it did - this is where i am going when i say that inflation can be combated by not engaing interest rates.

fiscal policy is not just about managing inflation by using BOE interest rates. there are other tools.

:rotfl:
This is great stuff lol, chucky you do make me chuckle.

Your £200 billion QE is effectively taking interest rates below zero. So it lowers the pound and hence inflationary. The only argument is how inflationary and the time delay of that inflation appearing compaired to interest rates which is about 18-24 months. Now this stuff is delayed as it is not put in the public purse but used to buy up dodgy mortgages and other loans.

If all western governments are doing it regulary it should hurt the £ but to do it when other like the US have stopped and now raising interest rates would sink the £ and cause rampant inflation.

chucky

brit1234 wrote: »

:rotfl:
This is great stuff lol, chucky you do make me chuckle.

Your £200 billion QE is effectively taking interest rates below zero. So it lowers the pound and hence inflationary. The only argument is how inflationary and the time delay of that inflation appearing compaired to interest rates which is about 18-24 months. Now this stuff is delayed as it is not put in the public purse but used to buy up dodgy mortgages and other loans.

If all western governments are doing it regulary it should hurt the £ but to do it when other like the US have stopped and now raising interest rates would sink the £ and cause rampant inflation.

three things to prove you haven't got a clue

if £200bn effectively took rates to be low zero - why did they bother lowering the BOE base rate if it had effectively done that anyway... :eek:
why did the £ drop so much even before the USD stopped it's 'QE'? :eek:

the third one that makes me laugh the most is that you were the guy that was guaranteeing everyone that house prices would be 50% off their peak by Christmas 2009...

chin up - contradict yourself again

nembot

IveSeenTheLight wrote: »

Guess this answers who deals with facts and who deals with speculation

Says the person who speculated and got it completely wrong.

I know my figures are much closer to the truth than your guesswork, history tells it how it is.

The challenge is there, what's the matter - cocky comeback easier than finding facts?

Hardly suprising...