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Debate House Prices
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Negative interest rates on the way?
Comments
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and if people were charged interest for having money in their bank, everyone would just withdraw it, causing a run on the banks.
Never going to happen
But you do need some form of paying bills and things, you do need a bank account these days.
It could be that you are charged interest for having money in your account, so people will just keep as little in their accounts as they can.
But the other side of negative interest rates is you are paid to be in debt.
So everyone wants to be in debt.House Prices 2007/08 £200K, Silver £5oz
Ratio 40,000 oz to 1 house.
2012 Fallen to £160K, Silver risen to £20 per ounce. So house/silver ratio fallen to 8000.
Prediction for the end of the decade, will keep falling at current rate until 1000 oz or less valued same as average house.0 -
Brilliant
We have a world financial crises caused by too much debt, and the BoEs answer is to encourage further and bigger debts.
Have we all totally lost the plot?0 -
Treadstone2.0 wrote: »
But the other side of negative interest rates is you are paid to be in debt.
So everyone wants to be in debt.
Not me - apart from a mortgage never have been and I have no intention of being."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
As an aside to the debate so far, the prospect of a negative base rate may actually harm those with the best tracker mortgage deals at the moment.
I would imagine that banks would quickly have teams of lawyers looking for all ways to get out of these deals, if they were actually faced with having to pay significant numbers of people interest on their borrowings."When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0 -
MacMickster wrote: »As an aside to the debate so far, the prospect of a negative base rate may actually harm those with the best tracker mortgage deals at the moment.
I would imagine that banks would quickly have teams of lawyers looking for all ways to get out of these deals, if they were actually faced with having to pay significant numbers of people interest on their borrowings.
already happened back in 2008 -
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/3567585/Tens-of-thousands-of-home-owners-could-have-their-mortgage-paid-by-banks.html
the banks simply dug in and (rightly) said that the agreements refer to the customer paying the bank, not the other way round. so all that happened was their interest rate dropped to 0%, not negative.'Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.'
GALATIANS 6: 7 (KJV)0 -
RUN_RABBIT_RUN wrote: »already happened back in 2008 -
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/3567585/Tens-of-thousands-of-home-owners-could-have-their-mortgage-paid-by-banks.html
the banks simply dug in and (rightly) said that the agreements refer to the customer paying the bank, not the other way round. so all that happened was their interest rate dropped to 0%, not negative.
What about all those poor folks who are getting benefit and the government is paying the interest on their mortgages to prevent the flood of repos's?
They will be feeling very hard done by if the government stops paying their interest because there is no interest to pay.House Prices 2007/08 £200K, Silver £5oz
Ratio 40,000 oz to 1 house.
2012 Fallen to £160K, Silver risen to £20 per ounce. So house/silver ratio fallen to 8000.
Prediction for the end of the decade, will keep falling at current rate until 1000 oz or less valued same as average house.0 -
grizzly1911 wrote: »many big corporates are sitting on cash piles
Yes offshore. To avoid paying tax. A major problem for US Nationals in particular.0 -
grizzly1911 wrote: »Not me - apart from a mortgage never have been and I have no intention of being.
but if you actually got paid for being in debt (which is whats being discussed), you'd be mad not to0 -
but if you actually got paid for being in debt (which is whats being discussed), you'd be mad not to
No one is going to get paid to be in debt. This is a fantasy.
And even if the fantasy came true, most people would be sane enough to realise it would only be a temporary situation that would only hit those currently in debt.
No lender is going to actually offer new loans where they pay you to take them.0 -
Graham_Devon wrote: »No one is going to get paid to be in debt. This is a fantasy.
And even if the fantasy came true, most people would be sane enough to realise it would only be a temporary situation that would only hit those currently in debt.
No lender is going to actually offer new loans where they pay you to take them.
I know that, was coming from a purely hypothetical angle0
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