Very scary words from Carney

Graham_Devon

grizzly1911 wrote: »

If they can't afford the finance it begs the question how they will afford to pay, ever more, nationwide.

Maybe the FTB's won't buy. Maybe an extension to easier credit for BTL and BTL pushing prices up?

Not good, obviously, though this has been happening of late, so no real reason it couldn't continue. BTL loans have increased nearly 50% since the recession as more and more see it as the best investment around.

It could well be too, as the system is so interlinked now, the taxpayer is on the hook for any falls, not the BTLs or the banks.

This wasn't something we had in 2007. Now more and more are tapping into the train of thought that some things in this country simply will not be allowed to fall in price, regardless of the cost to the taxpayer.

First it was banks. Now it's housing to support the banks.

I think I am coming around to accepting this now. Angry about it, yes, as I, and my son will never have the opportunity others have had. It will be much harder through life to save up anything for a pension as every bit of money earned is spent on essentials such as mortgages or rent and ever increasing tax bills....not just fixed taxes, but the extra taxes such as car parking permits to work etc.

My BIL has just had to shell out 1.3k for a permit and train pass as the council have stopped all parking. He's got an advance in his wages, but that permit itself is 8% of his wages. It's an extra expense, out of the blue which no inflation figures will pick up on. His earnings will remain the same. It's hidden from all statistics....yet he loses 8% of his pay.

But at the same time he's supposed to put by for a house, a pension, AND pay his ever increasing rent, food and gas bills.

Links back to what I said to chucknorris. Two different worlds, he works very hard, but seemingly cannot take a step forward as year after year he's poorer. The much feared deflation by some is what he, and I, pray for as a means towards getting an inch further forward each year. Of course, my inch forward costs someone else much better off a foot backwards.

So in the case of what chucknorris stated (I don't think he will mind me saying this) it would be a foot backwards for him, and an inch forward for me. That's when the arguments start!

padington

We'll get growth for a few years for the election but then some even more nasty inflation felt on the high street which in time will be blamed squarely at the door of Cameron, Osbourne (and the liberal democrats), Which will negate any feelings or prosperity bar in the housing market ( where inflation is cheered ). The only question is how much does Cameron and Osborn heat up the market for the election and will it be enough ?

I reckon the answer is a heck of lot because electorally the Tories are In a hole with UKIP on the horizon. Which will push property in London to a stupid price in the next two years.

ruggedtoast

Graham_Devon wrote: »

Though, how scary will depend on your position!

http://www.telegraph.co.uk/finance/economics/10071951/Europe-faces-lost-decade-says-Mark-Carney.html

I don't want to be an experiment!!!

_pale_

The problem with these azzholes is that their vision of reform is all exactly the same. i.e Europe becoming exactly like the worst parts of America.

Low tax, low welfare, no job security, no unions, privatised healthcare, outsourced everything, high school nutrition classes sponsored by McDonalds and Coke, government policy dictated by big business, and no government spending except on corporate welfare and tax avoidance for everyone who is rich enough to fiddle tax.

Not a single one of them will point to the poverty, unemployment, fractured communities and privation in North America as an example of why neo-liberalism doesn't work, which is exactly what this douche wants more of with his wretched QE and monetary liberalism.

Its funny how people who continually mismanage the money supply always want policies enacted that will let them keep mismanaging more money.

wotsthat

Graham_Devon wrote: »

I think I am coming around to accepting this now. Angry about it, yes, as I, and my son will never have the opportunity others have had. It will be much harder through life to save up anything for a pension as every bit of money earned is spent on essentials such as mortgages or rent and ever increasing tax bills....not just fixed taxes, but the extra taxes such as car parking permits to work etc.

I've just had my first grandchild (yes I know I don't look old enough) and have a new 1 year old nephew. Honestly - I think there's a whole world of opportunity out there for them.

Your son's a toddler (?) - negativity is infectious - don't write him off.

Graham_Devon wrote: »

Links back to what I said to chucknorris. Two different worlds, he works very hard, but seemingly cannot take a step forward as year after year he's poorer. The much feared deflation by some is what he, and I, pray for as a means towards getting an inch further forward each year. Of course, my inch forward costs someone else much better off a foot backwards.

You've made a rather large assumption that deflation is going to make you better off and better off people much worse off. I doubt it but you might be right.

Those doing OK now will continue to do so. If/ when we see deflation I guarantee that the people who think the BoE and government are shafting them now will still be complaining about getting the shaft.

ILW

ruggedtoast wrote: »

The problem with these azzholes is that their vision of reform is all exactly the same. i.e Europe becoming exactly like the worst parts of America.

Low tax, low welfare, no job security, no unions, privatised healthcare, outsourced everything, high school nutrition classes sponsored by McDonalds and Coke, government policy dictated by big business, and no government spending except on corporate welfare and tax avoidance for everyone who is rich enough to fiddle tax.

Not a single one of them will point to the poverty, unemployment, fractured communities and privation in North America as an example of why neo-liberalism doesn't work, which is exactly what this douche wants more of with his wretched QE and monetary liberalism.

Its funny how people who continually mismanage the money supply always want policies enacted that will let them keep mismanaging more money.

As opposed to the Soviet system, which really worked well.

CLAPTON

grizzly1911 wrote: »

If they can't afford the finance it begs the question how they will afford to pay, ever more, nationwide.

House prices go up because people do in fact actually buy them.

In that sense they can 'afford' to buy because the proof is in the purchase.

The mix of people may change; maybe more landlords and few home owners but if they are 'unaffordable' they either do not sell or the price drops.

grizzly1911

ILW wrote: »

As opposed to the Soviet system, which really worked well.

Two sides of a warped coin.

padington

CLAPTON wrote: »

House prices go up because people do in fact actually buy them.

I think its fairer to say more people contractually borrow the house from the bank under an mortgage agreeement which if they can pay the interest rates on a mortgage for 25 years they can own the property then ( if a freehold property ).

CLAPTON

padington wrote: »

I think its fairer to say more people contractually borrow the house from the bank under an mortgage agreeement which if they can pay the interest rates on a mortgage for 25 years they can own the property then ( if a freehold property ).

nonsense and irrelevant

pqrdef

grizzly1911 wrote: »

How will people that can't afford to buy houses or raise deposits to even think about buying push up prices (outside of London and the SE).

They're not in the market. The people in the market will have plenty of money, because the gap just keeps getting wider.

We're heading back to Victorian levels of class division. Watch out for top hats and tailcoats coming back into fashion.

Half the Tory party would like to reintroduce the sumptuary laws.