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Debate House Prices
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McKinsey: UK households GAINED $1.1 Trillion from crisis
Comments
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Houses prices weren't propped up, the economy was. There's not even a subtle difference.
They are inextricably linked."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 -
And so is your job but we don't use that soundbite.grizzly1911 wrote: »They are inextricably linked.
"QE propped up UK jobs".
QE and employment are inextricably linked too.0 -
I have been saying this since the start of the credit crunch. Our household has made a fortune out of the GFC, we have seen our bonds and equities double in value and we bought our dream house at a post-recession price and have used / are using cheap borrowing to pay for it and renovate it.
We are one family that will look back at this recession fondly. We saw it coming and we prepared our finances accordingly. Failure to plan is to plan to fail.
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And so is your job but we don't use that soundbite.
"QE propped up UK jobs".
QE and employment are inextricably linked too.
I agree but I didn't say they weren't linked as you suggested."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 -
HAMISH_MCTAVISH wrote: »"In the United Kingdom, household wealth may have increased by $1.1 trillion as a result of ultra-low interest rates, with an estimated 89 percent coming from housing, 10 percent from bonds, and 2 percent from equity."
Where exactly in the report is this quote?0 -
Where exactly in the report is this quote?
Its in the main report, just after where it says that the effect on asset prices is inconclusive, that the effect on house prices is an estimate based on empirical evidence in more normal times.
Again, it then states that any propensity to consume based on increasing house prices has only ever been shown in normal times.
I think QE was the right decision, however would never be gullible enough to think were only winners from the policy.
It has real dangers, as all the money has to have an effect somewhere, possibly an asset price bubble.
An even worse danger is that politicians (and central bankers) want to dust it off as a policy response to every future recessionUS housing: it's not a bubble - Moneyweek Dec 12, 20050 -
From 2007 to 2012, governments in the eurozone, the United Kingdom, and the United States collectively benefited by $1.6 trillion both through reduced debt-service costs and increased profits remitted from central banks
As usual, brainwashing comments from a consulting company who works closely with the governments and multi-national companies.
They said governments benefited. What is to do with us?? Look towards the end of article (shown below)Meanwhile, households in these countries together lost $630 billion in net interest income, although the impact varies across groups. Younger households that are net borrowers have benefited, while older households with significant interest-bearing assets have lost income.
In other words, govt. robbed householders to increase its own wealth. Nothing new.
Statistics are like lamp posts. Some use it for illumination and some drunkards use it for supports.Happiness is buying an item and then not checking its price after a month to discover it was reduced further.0
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