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Debate House Prices
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Time to raise interest rates, time to stop false BRICK economy
Comments
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Quite how you get house prices falling from this is beyond me.
Because 1 + 1 = eleventy in Brit's world.
It's all a bit Royston Vasey.....:eek:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
vivatifosi wrote: »I thought something was missing.... Did someone get PPR'd?
Nah, just Hamish's "you're an idiot" image followed up by "pot meets kettle" image of geeners got deleted....so now I look a fool!0 -
Graham_Devon wrote: »Nah, just Hamish's "you're an idiot" image followed up by "pot meets kettle" image of geeners got deleted....so now I look a fool!
It's like raaaaiiiinnnnn.....on your wedding day0 -
Afternoon Brit - those July Nationwide figs still not out eh? Very lax of them indeed ...
..OOooo look what I found!
http://www.nationwide.co.uk/hpi/Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger0 -
Nice to see SuperV back.
Does anyone remember the massive thread he started in 2008 called "Interest Rates - BoE should cut them or the governer should go!?
A lot of folk on here though he was crazy to suggest such a thing.
Foreversummer0 -
Well what if the recovery was just a cover up and going to get far worse, but inflation forces interest rates up?
Growth will force interest rates up not inflation. Majority of inflation is imported as a result of weaker pound.
Interest rates will rise as cost of financing debt increases. This will be by market force and not BOE.0 -
You've said above that more will be leant out on mortgages if there's increased savings - surely the reason why the market is stagnant at the moment is because of a lack of mortgage financing - easing this will, given that the supply side issue hasn't changed substantially just lead to increased demand. Quite how you get house prices falling from this is beyond me.
The lack of mortgage finance is due to the banks not having enough capital. The traditional source of capital is savings however during the bubble they moved towards selling mortgage backed securities.
Low interest rates and high inflation is discouraging savings and thus the reason for the lack of mortgage financing.
The other point is banks use to lend at about 3.5 times salary. This limited the money they lent out per person. With property prices at 6 times salary and relying back on savings again the money pot can't go as far and reduces further the amount of people that can be lent too.
We need higher rates to encourage savings to allow more lending. These saving funds can come through life style changes or asset transfers.
For example the weak pound is making people invest in precious metals, buy to let properties etc.
Also if people can see that their savings are beating inflation then more people will encourage savings.
The original idea of lowering interest rates was to encourage people to ditch their savings and spend them stimulating the economy in the short term. The problem is once those savings are spent the stimulation ends.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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It is time to stop paying absurd salaries and benefits to civil servants - £100k at most.
So what percentage of civil servants are paid more than £100k pa? The vast majority aren't even on a quarter of that amount. I suspect your proposal on this front will save the square root of FA.
Here's a better idea - Double to minimum wage and stop all benefits to people who are working (working tax credits etc). That should save the tax payer a few quid.0 -
It's like raaaaiiiinnnnn.....on your wedding day
:rotfl::rotfl::rotfl:It would be ironic, if I hadn't repeatedly admitted that I rather enjoy trolling the trolls.
You guys do rather seem to get this one wrong a lot.
Naturally you sew no irony in Hamishes original example of bullish "wit".
Which, along with the above, demonstrates that you clearly need to consult a dictionary.0 -
Some very suspect figures on display. Is this based on anything?2) BoE should stop any kind a support for mortgage market in the next 5 years. That will free additional ~200 billions.0
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