rate cut and the housing market ...

MissMoneypenny

That song "Gordon is a moron" has been going through my mind today.

granville_2

Running_Horse wrote: »

The financial editor of the Financial Times was interviewed on TV today, and said it was the right decision. I have already mentioned the Times leader, and the Chamber of Commerce elsewhere.

I would rather be in that minority, than a bunch of HPC hopefuls on an Internet message board. Just keep telling yourself you are right and everyone agrees with you.

Let the good times roll.

What good times? Please explain.

The UK is one of the most indebted nations on earth. How can cheaper credit improve matters?

Can I also refer you to the Japanese economy over the last 15 years, and don't forget that Japan actually makes things. We sell houses to each other at ever inflated prices.

Gorgeous_George

MissMoneypenny wrote: »

That song "Gordon is a moron" has been going through my mind today.

The song is 'Jilted John' by Jilted John.

GG

Gorgeous_George

granville wrote: »

What good times? Please explain.

The UK is one of the most indebted nations on earth. How can cheaper credit improve matters?

How would falling (house) prices and repossessions improve things?

Inflation may be the lesser of two evils.

GG

MissMoneypenny

Gorgeous_George wrote: »

The song is 'Jilted John' by Jilted John.

GG

Is that what it is called? I only remember the words "Gordon is a moron".

fc123

granville wrote: »

Lower rates = a lower pound.

Let's face it, we are a net importer of goods (look at our trade deficit). A lower pound = more expensive to import said goods = increase in inflation.

Don't forget to add on the increased costs for energy, raw materials, food etc. The NICE period (non-inflationary constant expansion) is well and truly over. Does anyone truly believe the CPI figures?

Let's just hope our wage-inflation keeps up by the same amount.

And remember kids... 'house prices are a matter of opinion, debt is real'.

Let's be careful out there.

btw, this makes good reading...
http://www.moneyweek.com/file/39071/the-bank-of-england-cant-save-the-%20housing-market.html

Merryn Somerset Webb is my new guru....what she says, goes, IMO.

PS; My Boutique is used as data for the Retail Price Index...2 months ago we had 2 genuine price rises...this month they deleted them on a technicality...so the 2 price rises no longer exist.....my lovely "statistics man" is aways full of info..several other rises were deleted off the data too......you can try to control the market for so long but , in the end, it will settle itself.

When he visits next week, I will be recording 6 price rises (sorry!) as my overheads have doubled in past 5 yrs and I , now, cannot keep prices the same. My industry (clothing) is one of Gordons fave deflationary sectors...in fact, we sell knits at the SAME price we did 10 yrs ago....but people no longer by more volume. Sory, don't want to go off topic, but all this diff info is relevant to the bigger picture......

Running_Horse

mr.broderick wrote: »

Good times Roll? You are either totally mortgaged up to the eyeballs on the periphery of affordability or on acid, which is it?

HPC hopefuls?

It kills me to say it guys but even I think we are on a helter skelter ride to oblivion now.

Just an ordinary bloke with a mortgage and family who remembers what happens when interest rates keep rising. Remember how bad repossessions used to be?

What a bunch of miseries. Looks like Squatnow is working his magic. Anyone would think the queen had died rather than mortgage rates coming down. Out there in the real world, most people will think this is good news. Sometimes they rise, sometimes they fall. We take the pain when they go up, and enjoy building up an overpayment cushion when they fall.

As for those praying for prices to fall, I agree, prices should fall, but not by engineering a Lamont-style crash.

ManAtHome

A new slant on the old joke - "what's brown and sticky"?

A crap chancellor...

granville_2

Gorgeous_George wrote: »

How would falling (house) prices and repossessions improve things?

Inflation may be the lesser of two evils.

GG

you better hope that wages inflate at the same (or greater) rate. can't see that happening, can you?

Dylanwing

Damed if they do, damned if they don't. I think they know that we are in for a rough ride and are trying to cushion the landing. With oil, energy and food prices rising, interest rates will make no difference to real inflation, and it's probably better that savers suffer rather than borrowers. You never know, maybe us wage slaves might still be able to afford a home, to get to work, eat, and afford next years Council Tax without selling the kids into slavery! We can do that when we have to buy our ever-so-useful ID card!