House Price Crash Discussion Thread

Pobby

Well I do understand very well that some folk,through no fault of there own are in debt and my heart goes out to them.However on the other side of the coin some people out of sheer greed and avarice have landed them selves well and truly in the smelly stuff.

The amount of muppets that thought they were getting rich because of HPI amazes me.Did they not realise that when they MEWed all they were doing was using their house as security.To talk to some of them you would have thought it was ``free`` money.
As geoffky says,why should I a a frugal saver not get some reward for this.When others,family members included,were spending like mad we were paying down debt then we switched to savings mode.I thank the Lord that I had decentish profits for a few years so that enabled me to do so.

The stupid HPI has helped few but it appears it is about to bite many on the bum.

tr3mor

chriseast wrote: »

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

I agree wholeheartedly. :beer:

LisbonLaura

Agreed. Great post Chris. You've said it all.

ManAtHome

Well the BoE have either caved in to politics and the media, or they think the current "LIBOR gap" isn't just an end-of-year accounting/hoarding blip.

Even if the quarter percent feeds through to LIBOR, we still have "real" interest rates around 6.5% which probably vindicates the economists forecasting last spring that we'd have rates of 6% or over by the end of this year.

Will have to wait for inflation and LIBOR moves, but still plenty of savings rates over 6% for 1 to 5 year fixes, and lower rates doesn't magic up heaps of extra inter-bank cash.

sdooley

Those who predicted disaster were branded as "mugs". Reality was
suspended in favour of excess. Too few wanted to miss out on the eternal summer of perpetual house-price inflation. It was a time of collective deceit, into which borrowers, lenders, regulators and ministers happily bought.

http://www.telegraph.co.uk/opinion/main.jhtml;jsessionid=ONHLPNNG3OMRTQFIQMFCFFWAVCBQYIV0?xml=/opinion/2007/12/07/do0701.xml

John_Pierpoint

I know a minicab driver with a farm house in Bulgaria - watch this space ?

(If you need investment advice, make sure you talk to the peasants. When they foul-up they starve; perhaps the telegraph journalist who has managed to make a story out of the now blindingly obvious, needs to get back to his minicab financial planner and see what he did once the rent no longer covered the mortgage ).

Where have I put my SouthSeas company share certificate? Oh here it is in the safe with the Black Tulip I bought at auction.

[Deleted User]

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....

There is a way, put the savings you dont need to spend into equities, stocks and 4% gold 1% silver. If you do i believe in 15 years you will be a millionaire even off the back of about 10K, especially if you have a high proportion in commodities. Food, Miners, Oil, Energy. India + china will make very very very very sure of that!

If everybody did this they couldnt get away with making money so cheap. Its stupid to cut interest rates they should be permanently between 6-10%. BOE are idiots, I wonder how long they can keep the illusionb up before the market collapses and all of a suddern pensioners cant buy one days worth of food.

Cheap money creates money via fractional reserve banking and bond markets, this floods the system and creates high inflation. Its no coincidence milks gone up by 20p this year and vegetables by a reported 26%.

Biggie

Yant1 wrote: »

Its no coincidence milks gone up by 20p this year and vegetables by a reported 26%.

but that was cos of the floods (big BROWN grin)

JonnyBravo

Yant1 wrote: »

There will be no IR drop this month!

Oh Yanty...... you're not too good at this are you?;)

I'm still waiting for my dollar and its 3-0 on the ol' thread..... I've noticed you're ignoring that now!?:D

seraphina

A possible silver lining for all you people out there with savings - I think some building societies and banks won't or can't cut their savings rates.

They used to be able to fund their lendings on the money markets by selling on your mortgage. Now they have to rely on savers' deposits, just like the good old days.

<paranoia> If I was with a bank that raised their interest rates on savings accounts right now, I'd be a bit suspicious of their lending pratices. They obviously need the money!</paranoia>