Positivity about the Housing Market at Last!!!

WTF?_2

butterflysam wrote: »

:j

It's nice to begin the week with something positive about the housing market for a change.

http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/03/16/pspring116.xml&page=1

What a complete load of rubbish ... anyone talking up property at this time is extremely irresponsible. Take a look at the financial news ... go to Google and search for financial websites and see for yourself what is happening.

We are headed full speed for a nasty recession - possibly a 1930's style depression even - and that last thing the average person needs to do now is take on a huge loan to buy property.

WTF?_2

johnycoldears wrote: »

In fact the only way this depressionary spiral can be slowed is if the fall in house prices can be stabilised, meaning that Bank's collateral is actually worth what they've loaned.

And just about the only way that the government can do this is to inflate the money supply to the point where an average house really is worth the nominal cash price paid for it.

That's all very well but it's likely that we will be paying 3 quid for a litre of petrol and 4 quid for a loaf of bread as a result of the currency being debased to save the banking system. :mad:

That will cause even more long term problems but there's at least a 50/50 chance that the politicians will go for the 'easy answer'.

izzybusy23

butterflysam wrote: »

:j

It's nice to begin the week with something positive about the housing market for a change.

http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/03/16/pspring116.xml&page=1

Funny how the Daily Mail are saying something completely different... like people having to find between £200 - £500 extra a month when they come off fixed deals and some are being advised to sell now before they get repossesed...

Butterflysam, please change your name to Cuckoosam instead...

abaxas

!!!!!!? wrote: »

And just about the only way that the government can do this is to inflate the money supply to the point where an average house really is worth the nominal cash price paid for it.

That's all very well but it's likely that we will be paying 3 quid for a litre of petrol and 4 quid for a loaf of bread as a result of the currency being debased to save the banking system. :mad:

That will cause even more long term problems but there's at least a 50/50 chance that the politicians will go for the 'easy answer'.

There is no 'easy' way out, but more importantly, lets hope there is a way out :eek:

Whatever happens 100,000 of people will lose their homes, jobs and happiness.

Woot for the bankers...Thanks mate.

Hoario54

dannyboycey wrote: »

If you're talking Bear Stearns, that is undoubtedly going to have a big affect on OUR housing market.

You wait until the next casualties are taken, my favourite rumours of the day include Lehman Brothers, Bradford & Bingley and the old favourite Alliance & Leicester.

This is going to be horrible and the value of your home is going to be the least of your worries...:eek:

busy_bee_7

izzybusy23 wrote: »

Funny how the Daily Mail are saying something completely different... like people having to find between £200 - £500 extra a month when they come off fixed deals and some are being advised to sell now before they get repossesed...

Butterflysam, please change your name to Cuckoosam instead...

YEP! I couldn't agree more izzybusy!

Sorry Butterflysam, but I think you live in a Coockooland!

:rotfl:

Busy bee

johnycoldears

!!!!!!? wrote: »

And just about the only way that the government can do this is to inflate the money supply to the point where an average house really is worth the nominal cash price paid for it.

That's all very well but it's likely that we will be paying 3 quid for a litre of petrol and 4 quid for a loaf of bread as a result of the currency being debased to save the banking system. :mad:

That will cause even more long term problems but there's at least a 50/50 chance that the politicians will go for the 'easy answer'.

Absolutely.

This process is already underway. All the Central Bank interventions in pumping in cash to maintain liquidity in the market is doing is decreasing the total value of the money in the system i.e boosting inflation. In turn investors are seeking to protect their investments by investing in "safe haven" commodites. Gold is the obvious one, but also wheat and oil. The demand for these commodities is pushing up their price - again big time inflation for the man in the street.

Despite the Government's comments about continuing to target inflation at 2% I really think that they're going to try and deflate the current debt crisis through devaluing the debt - i.e inflation.

dannyboycey

Hoario54 wrote: »

You wait until the next casualties are taken, my favourite rumours of the day include Lehman Brothers, Bradford & Bingley and the old favourite Alliance & Leicester.

This is going to be horrible and the value of your home is going to be the least of your worries...:eek:

I think B&B may go soon.... that will be big news in the UK. Barclays have also taken a big hit, I'm sure they will weather it though, but could you just imagine if someone as big as Barclays went down the plughole!!

neilp

The other major UK bank with a scary capital adequacy ratio is RBS, though very little has been written about this in the media. I think RBS and Barclays are both so big that the UK authorities can't afford to let them fail.

butterflysam

Please don't shoot the messenger :eek:

I was being sarcastic when I posted this morning.
I agree with all of you.
Believe me I am not cuckoo, as some of you are led to believe.

We have had our house on the market for only 2 weeks, and have already dropped by £5,000. The house market is all doom and gloom and I think we will take our house off the market and see what happens in the forseeable future.