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Panic at the Bank of England
acook
Posts: 14 Forumite
The credit crunch is worse than anyone ever imaged. Today, the central banks have announced a coordinated plan to pump in liquidity into the world's major banks.
Here in the UK, the bank of england will accept inferior quality debt as collateral for short term loans to the banks.
Last week's interest rate cut has failed to stop the credit crunch. Interbank rates haven't fallen and accessability to cheap mortgages is over.
What does this mean for the UK housing market. I doubt we will see 10 percent annualized house price growth again in our lifetime.
Now is the time for panic. Sell those houses now, accept whatever is offered. The first one to the fire exit survives, everyone else gets burnt.
Alice
Here in the UK, the bank of england will accept inferior quality debt as collateral for short term loans to the banks.
Last week's interest rate cut has failed to stop the credit crunch. Interbank rates haven't fallen and accessability to cheap mortgages is over.
What does this mean for the UK housing market. I doubt we will see 10 percent annualized house price growth again in our lifetime.
Now is the time for panic. Sell those houses now, accept whatever is offered. The first one to the fire exit survives, everyone else gets burnt.
Alice
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The credit crunch is worse than anyone ever imaged. Today, the central banks have announced a coordinated plan to pump in liquidity into the world's major banks.
Here in the UK, the bank of england will accept inferior quality debt as collateral for short term loans to the banks.
Last week's interest rate cut has failed to stop the credit crunch. Interbank rates haven't fallen and accessability to cheap mortgages is over.
What does this mean for the UK housing market. I doubt we will see 10 percent annualized house price growth again in our lifetime.
Now is the time for panic. Sell those houses now, accept whatever is offered. The first one to the fire exit survives, everyone else gets burnt.
Alice
http://ukhousebubble.blogspot.com
Yep - it's bad.
Very Very bad. :eek:
It's a Northern Rock style bailout on a global basis. In the end we'll ALL pay to get these idiots off the hook .. either through our taxes or seeing our savings eroded with high inflation and low interest rates. :mad:--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Inflation or Deflation: take your pick: you can actually choose now:rolleyes: The 'free market' my fuc**** ar**!!!!.BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
free4440273 wrote: »Inflation or Deflation: take your pick: you can actually choose now:rolleyes: The 'free market' my fuc**** !!!!.
It's the western, capitalist way.
Privatise profits (and they have been huge over the last 5-6 years, making bankers incredibly rich)
Nationalise losses (the general population can take the hit when things go bad for the big boys).--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
The credit crunch is worse than anyone ever imaged. Today, the central banks have announced a coordinated plan to pump in liquidity into the world's major banks.
Here in the UK, the bank of england will accept inferior quality debt as collateral for short term loans to the banks.
Link, please ?0 -
It all depends; do you own a house or not. If you are renting, finish your tea, and then sit back and relax.Can I finish my cup of tea first or do I have to start running about like a headless chicken now?
If on the hand, you own a house, no, I don't think you should wait. Get out there now, start screaming.
Btw, were you having anything nice with your tea?
Alice
http://ukhousebubble.blogspot.com<FONT face="Times New Roman">0 -
Sorry.....
http://www.bankofengland.co.uk/publications/news/2007/158.htm
http://www.federalreserve.gov/newsevents/press/monetary/20071212a.htm<FONT face="Times New Roman">0 -
free4440273 wrote: »Inflation or Deflation: take your pick: you can actually choose now:rolleyes: The 'free market' my fuc**** ar**!!!!.
I will answer that one.
Inflation for everything except housing. Massive deflation for housing.<FONT face="Times New Roman">0 -
It all depends; do you own a house or not. If you are renting, finish your tea, and then sit back and relax.
Not necessarily.
The upshot of all this will be higher taxes and high inflation. combined with unrealistically low interest rates.
That means if you are an earner, you are going to be hit. If you have savings you are going to be hit.
The only people who stand to gain are those who irresponsibly loaned too much, borrowed too much (maybe, if wages inflate) or greedily bought financial products like CDOs without doing their homework.
ie, The greedy and the stupid (and those who were both but already filthy rich)--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
free4440273 wrote: »Inflation or Deflation: take your pick: you can actually choose now:rolleyes: The 'free market' my fuc**** ar**!!!!.
as i've said before, prudence (saving) is punished; avarice is rewarded. I wouldn't mind so much if they let the chips fall where they may...BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0
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