Speculation and public money underpinning housing bubble

CLAPTON

sensibly_insane wrote: »

With due respect, read my post again please. I am talking about the middle way between the two extremes of what USSR was and where we are heading to right now. Owning one house is fine but hoarding a portfolio of tens of properties is plainly wrong while there is only a limited supply of property.

Except for Central London properties over £1 m a piece most new builds are bought by UK residences.

I'm not sure what you mean about hoarding a portfolio of tens of properties: are you referring to Housing Associations and Councils?

chewmylegoff

sensibly_insane wrote: »

That's what exactly happens in a bubble and he is rightly pointing out it is bound to happen. Bubble will burst, house prices will fall, interest rates go high, people go bankrupt, houses go in negative equity repossessions, auctions end up bank books going negative and rest is history.

Shame that none of that actually happened in any kind of significant size in the recent financial crisis. Very recent history demonstrates that the government will just enact other measures to make sure people continue to pay their mortgages. You want to ignore that and listen to the ranting of some chap on an obscure foreign tv channel, be my guest.

I don't see any industries coming back to UK or any sector growing. Germany has current reserves of 208 Billion US dollars while we are in a debt of 57 billion US dollars. To bridge this gap we need more than Pushing people to the non-paid, low paid temp/part time jobs.

Well the economy has started to grow, perhaps try looking on mainstream websites instead of lunatic fringe sources and you might find out there is quite a lot of positive news at the moment which makes things at least look more positive than they have for a few years. I'm not sure what "reserves" you're talking about - the Germans have national debt broadly equivalent to the UK and they have the added problem of having to prop up the Euro.

sensibly_insane

CLAPTON wrote: »

Except for Central London properties over £1 m a piece most new builds are bought by UK residences.

This is just one part of the puzzle, buy to let, more demand less supply, massive floodgates of immigration, lunatic structure of state benefits systems all contribute to this issue. Again, if we pay millions to political advisors and MPs they need to fix it. I am sure we don't have a crisis of ability here, all we need is political will here.

CLAPTON wrote: »

I'm not sure what you mean about hoarding a portfolio of tens of properties: are you referring to Housing Associations and Councils?

Not really, I am referring to "professional" individuals holding multitudes of properties on a professional basis.

sensibly_insane

chewmylegoff wrote: »

Shame that none of that actually happened in any kind of significant size in the recent financial crisis. Very recent history demonstrates that the government will just enact other measures to make sure people continue to pay their mortgages. You want to ignore that and listen to the ranting of some chap on an obscure foreign tv channel, be my guest.



Well the economy has started to grow, perhaps try looking on mainstream websites instead of lunatic fringe sources and you might find out there is quite a lot of positive news at the moment which makes things at least look more positive than they have for a few years. I'm not sure what "reserves" you're talking about - the Germans have national debt broadly equivalent to the UK and they have the added problem of having to prop up the Euro.

Do you think, this is lunatic fringe source? Germany has the second highest reserves of the foreign exchange in the world at the moment no wonder they seen with contempt in Europe

chewmylegoff

I'm not sure why you think that germany having large foreign currency reserves is a mark of doom for the uk economy.

CLAPTON

sensibly_insane wrote: »

This is just one part of the puzzle, buy to let, more demand less supply, massive floodgates of immigration, lunatic structure of state benefits systems all contribute to this issue. Again, if we pay millions to political advisors and MPs they need to fix it. I am sure we don't have a crisis of ability here, all we need is political will here.



Not really, I am referring to "professional" individuals holding multitudes of properties on a professional basis.

If you mean BTL then those properties are let out for ordinary people to live in just like council or housing associations owned properties.

Do you despise these people renting and only admire owner occupiers?

ManAtHome

CLAPTON wrote: »

however, cheap goods form China and the east did mean that inflation was low.

Surely not - Merv the Incompetent would have allowed for 'external effects'...

We also had the internet effect and the 'polish plumber' effect - pity the low inflation 'window' was peed up th wall.

sensibly_insane

chewmylegoff wrote: »

I'm not sure why you think that germany having large foreign currency reserves is a mark of doom for the uk economy.

It is not a doom for British economy. The point is to be in that league, which I am sure every one of us wants to be, either you need to have a very strong industrial base like China and Germany or immense natural resources, later not being a choice. These present schemes are not going to help us rather pushing us deeper and deeper in the national debt as the bubble bursts and state guarantees have to be honoured.

Imagine, a poor country handing over cash to its people and encouraging them to spend on buying artificially inflated properties and foreign holidays. We won't call them rich. Don't forget in the very near past, credit rating of the UK has been downgraded that was for a reason.

ManAtHome

Thrugelmir wrote: »

Central banks have spent the past 6 years engineering a soft landing. The UK banks are reaching the point where the worst is past.

Hope you're right, but I'd be surprised if RBS was anywhere near that point.

chewmylegoff

sensibly_insane wrote: »

It is not a doom for British economy. The point is to be in that league, which I am sure every one of us wants to be, either you need to have a very strong industrial base like China and Germany or immense natural resources, later not being a choice. These present schemes are not going to help us rather pushing us deeper and deeper in the national debt as the bubble bursts and state guarantees have to be honoured.

Imagine, a poor country handing over cash to its people and encouraging them to spend on buying artificially inflated properties and foreign holidays. We won't call them rich. Don't forget in the very near past, credit rating of the UK has been downgraded that was for a reason.

What league? Are you suggesting that the Chinese people are richer than the UK because they have a trade surplus? You might want to tell their general population as they will be surprised to learn that they are richer than their equivalents in the UK - they might want to know where all their wealth is hidden though.

Present current account balance is not a very good measure of the wealth of a country.