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Debate House Prices
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Comments
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My money is on things returning to 2007 levels as house prices going down is not really in the majorities interest.
Would that money have been obtained from your mate "Honest George", your friendly mortgage broker ?
Again, you stated a few moments ago that you said that house prices wouldn`t fall, but now you are stating that you think things will return to 2007 levels. I assume you are not talking about property prices returning to 2007 levels, as they haven`t fallen, have they ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
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Gordon, Alistair and Merv attempted to prevent price drops, and to a degree, it worked.
No they didnt. They kept the economy from collapsing (or reduced the fear that some people had that the economy would collapse) and that prevented the price drop. A side effect, not an objective.
House price movements are not a devious plot - they are a predictable consequence of movements in the wider economy.0 -
No they didnt. They kept the economy from collapsing (or reduced the fear that some people had that the economy would collapse) and that prevented the price drop. A side effect, not an objective.
House price movements are not a devious plot - they are a predictable consequence of movements in the wider economy.
Agree totally. The financial services sector is so important to the broader UK economy that it had to be rescued. If the UK had lost credibility and reputation for sound business conduct. Then the financial institutions would have left en masse.0 -
No they didnt. They kept the economy from collapsing (or reduced the fear that some people had that the economy would collapse) and that prevented the price drop. A side effect, not an objective.
House price movements are not a devious plot - they are a predictable consequence of movements in the wider economy.
I`m sure that the government announced initiatives to help mortgage payers who were falling behind with their mortgages.
With property values being of such importance to many people`s financial status (and therefore their choice at the polling station), I doubt that it escaped the government`s attention what could happen. I`m sure I heard one or two quotes from senior government members, claiming that they had done the right thing for people with mortgages. Not so long ago, I heard Gordon Brown saying "we`ve kept interest rates low". I thought the BoE had control over interest rates.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Thrugelmir wrote: »Agree totally. The financial services sector is so important to the broader UK economy that it had to be rescued. If the UK had lost credibility and reputation for sound business conduct. Then the financial institutions would have left en masse.
With the financial sector being so important, I would have thought that there should have been plenty of safeguards to prevent the likes of Northern Rock, Bradford & Bingley, RBS etc getting into severe difficulties.
Having said that, it wasn`t our fault, it was those naughty Americans, wasn`t it ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »Except the obvious one......
Mortgage Rationing.
Banks are rationing a limited supply of funding by jacking up the price of retail mortgage money to record levels of margin above funding costs.
I think that`s called "supply and demand".
Lack of supply is a good thing for the person/organisation with some supply, bad news for the those who demand.
According to property bulls, there`s nothing wrong with jacking up the asking price of a limited resource.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
do you own a house Derv?I think that`s called "supply and demand".
Lack of supply is a good thing for the person/organisation with some supply, bad news for the those who demand.
According to property bulls, there`s nothing wrong with jacking up the asking price of a limited resource.0 -
With the financial sector being so important, I would have thought that there should have been plenty of safeguards to prevent the likes of Northern Rock, Bradford & Bingley, RBS etc getting into severe difficulties.
Having said that, it wasn`t our fault, it was those naughty Americans, wasn`t it ?
NR committed fraud to cover its tracks and appear to comply with banking regulation.
In the case of RBS how do you regulate a bank that operated in 57 countries around the world. Bank regulation is a global issue.
The Basle regulations have been pushed backed 6 years to an implementation date of 2018. As many countries know that their major banks won't be able to address the issue of building sufficent capital reserves or capital base by 2012 to comply. Yet this was the agreed objective set in 2008 following the financial crash.
Self interest outweighs financial necessity all the time.0 -
I think that`s called "supply and demand".
Lack of supply is a good thing for the person/organisation with some supply, bad news for the those who demand.
According to property bulls, there`s nothing wrong with jacking up the asking price of a limited resource.
Oh dear - we live in a market economy. That is not likely to change in the short/medium term future. So you have to live by its rules.
The way it works is that prices are determined by negotiation between the buyer who wants minimum price but wants to buy and seller looking for maximum price but still wants to sell.
If the resource is in plentiful supply the buyer can always buy elsewhere and so has the advantage. If not the seller has the advantage.
It's not a matter of "jacking up", it's an automatic effect of the mechanism outlined above.0
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