House Price Crash Discussion Thread

geoffky

inflation ,inflation,inflation to hell with it,

there again £16 less to pay for £100,000 debt is not much help

geoffky

Down Goes The Ir
Up Goes Inflation
Down Goes My Disposable
Down Goes My Spending
Down Goes Uk Jobs

Goodnight Uk Plc. Will The Last Employee Shut The Door On The Way Out

LisbonLaura

geoffky wrote: »

inflation ,inflation,inflation to hell with it,

there again £16 less to pay for £100,000 debt is not much help

They might even pass on about £4 of it if you've been a good boy

geoffky

The Bank of England can't save the housing market

http://www.moneyweek.com/file/39071/the-bank-of-england-cant-save-the-%20housing-market.html

WTF?_2

geoffky wrote: »

i am absoluty fuming with this intrest rate cut as a very frugal saver and never had credit cards and never been in debt or overdrawn and i have just had too lose a lot of money because people are reckless with debt and spending,so us savers now have to bail out people in debt..well i hope all those in debt enjoy it because i have saved i am paying the price for it....

I doubt that those in debt will see appreciable cuts in the rate of interest that they are paying the lender any time soon. These cuts are for the benefits of the banks, not the borrowers.

Thus, we can expect to see cuts in the rate of interest paid to savers but not that charged to borrowers. The banks will pocket the difference, helping them out of the mess they've got themselves into. Also, lower Central Bank rates should theoretically translate to lower LIBOR which should ease the 'credit crunch' - maybe.

One thing is clear - it's panic stations. Interest rates should be going up if anything, to combat inflation which is the MPCs remit. That they are having to cut them is a sign of extreme weakness in the economy. Bad times ahead.

codger

Love !!!!!!'s "theoretically" (LIBOR): dead right.

An interest rate cut of this order is hardly going to achieve much other than pee off savers like geoffky (and me!!) 0.25%??? What is this, Cosmetic Economics?

I really do wonder how "independent" the BoE is. Or is its current and past behaviour -- presiding over a housing price boom to which BoE interest rate setting was entirely oblivious -- merely evidence of plain, simple, good ol' incompetence?

:eek:

LisbonLaura

High property 'values' is all the UK has (had) got left.


'Export or Die'


err.......... oh dear

merlinthehappypig

I'm fuming as well and have tried to hold off posting.

I simply can't understand what sort of society we are trying to create here. We have a Government (and previous Governments aren't guiltless either) whose whole economic policy is based on getting people to spend more than they can afford on things they don't need. Anyone trying to be prudent and save is penalised. We pay tax on what we earn, then again on the interest we earn on the money we put aside. I can't get the absolute best rate of interest that I should because the savings guarantee of £35000 means that I have to open more than one account to minimise the risk.

I really don't know why I bother. I may as well spend the lot, borrow what I can't afford and stick up two fingers when I can't pay it back.

What I really can't see is where it will end. Surely at some stage in the future there must be consequences? Is a society and economy solely fuelled by personal debt sustainable or, as some posters suggest, will it all come crashing down around our ears?

We strive for 'growth' which means that we use up our resources ever faster. What happened to economies in the past when people saved for what they wanted and bought only what they needed?

We have created an entire generation of people who think that they can have whatever they want immediately. I've almost given up encouraging my kids to save because they look at me as if I am some sort of fossil. They can get it now, so why save up?

Rant over:)

WTF?_2

chriseast wrote: »

I'm fuming as well and have tried to hold off posting.

I simply can't understand what sort of society we are trying to create here. We have a Government (and previous Governments aren't guiltless either) whose whole economic policy is based on getting people to spend more than they can afford on things they don't need. Anyone trying to be prudent and save is penalised. We pay tax on what we earn, then again on the interest we earn on the money we put aside. I can't get the absolute best rate of interest that I should because the savings guarantee of £35000 means that I have to open more than one account to minimise the risk.

I really don't know why I bother. I may as well spend the lot, borrow what I can't afford and stick up two fingers when I can't pay it back.

What I really can't see is where it will end. Surely at some stage in the future there must be consequences? Is a society and economy solely fuelled by personal debt sustainable or, as some posters suggest, will it all come crashing down around our ears?

We strive for 'growth' which means that we use up our resources ever faster. What happened to economies in the past when people saved for what they wanted and bought only what they needed?

We have created an entire generation of people who think that they can have whatever they want immediately. I've almost given up encouraging my kids to save because they look at me as if I am some sort of fossil. They can get it now, so why save up?

Rant over:)

You have to understand that the credit boom is the only thing keeping the British economy going. It's all based around cheap, easy to get credit with perpetually rising house prices giving consumers the confidence to borrow more.

The house price boom has been a side effect of the loosening of monetary policy and the resulting cheap credit bonanza. All that new money had to go somewhere. However, I think regardless of interest rates we could be seeing the end of this avenue for inflation. The problem for the government (and all the other 'anglo' govts who followed similar policies) is that they can pump money into the markets but they can't control where it goes.

Over the last decade, housing has soaked up the freshly created credit. The sums really don't add up for that any more and we could be about to see other things inflating massively instead - like food, energy and everyday commodities. Something tells me that selling food price inflation as a good thing is beyond even our sleazy, lying government's abilities.

yellowmonkey

geoffky wrote: »

i am absoluty fuming with this intrest rate cut as a very frugal saver and never had credit cards and never been in debt or overdrawn and i have just had too lose a lot of money because people are reckless with debt and spending,so us savers now have to bail out people in debt..well i hope all those in debt enjoy it because i have saved i am paying the price for it....

Lucky you. Bet your Halo s nice and shiney.I am in debt and I can tell you I do Not enjoy it. Do not make assumptions and tar every one with the same brush. Hope interest goes sky high to help your savings. Pity the people that will lose their houses though. Typical selfish attitude of the 80's.

ym