Halifax -2.5 MoM

Treadmill

Money is created by banks lending so as soon as they start lending there will be plenty of money sloshing about again, the biggest threat we are facing in the future is inflation in my opinion as this affects everybody everyday. I'd like to see the BoE raise interest rates personally.

neverdespairgirl

izzybusy23 wrote: »

I certainly am.. but then I put myself in that category because I DO feel inferior to friends etc because I haven't got a property.

Is it people making us feel like that, or are we doing it to ourselves?

Why on earth do you feel inferior?

dudleyboy

Treadmill wrote: »

Money is created by banks lending so as soon as they start lending there will be plenty of money sloshing about again, the biggest threat we are facing in the future is inflation in my opinion as this affects everybody everyday. I'd like to see the BoE raise interest rates personally.

By "inflation" I take it you mean the recent increases in the price of food? Or is it gas? Maybe electricity? Or how about fuel?

In fact, I'm guessing you're referring to everything other than (heaven forbid!) house prices. Am I right?

Treadmill, I'm sure you're a lovely person but I won't be making any financial decisions based upon you're opinions, I'm afraid. Do you not see that it was "plenty of money sloshing about" that has caused this problem? Supplying even more money to the markets just devalues what is already in circulation!

House prices were too high in 2003 and sales slowed. The solution? Throw MORE money out there! People can't afford to buy a house with a 100% mortgage? Give 'em 125%! Buy with strangers, buy with siblings, share the ownership, do absolutely anything other than encourage house prices to fall!!!

Why? Because this country doesn't do anything any more other than build f'n houses! Our ENTIRE economy seems to depend upon it! But if people can't afford to buy houses any more then what??? :eek: I know - how about bribe them with £1,500? That could work...

According to Gordon Brown the UK currently has low inflation and low debt!!!

http://news.bbc.co.uk/1/hi/uk_politics/7336642.stm

Incredible. The man is clearly quite deluded and, I have to admit, beginning to scare me. If he doesn't acknowledge that a problem exists how on earth is he going to manage it???

He seriously needs to go before his political career drags us all down with it.

Pez2

Treadmill wrote: »

Money is created by banks lending so as soon as they start lending there will be plenty of money sloshing about again, the biggest threat we are facing in the future is inflation in my opinion as this affects everybody everyday. I'd like to see the BoE raise interest rates personally.

Banks do not create money out of thin air. The mortgage boom of the last few years has been fuelled by the banks borrowing from the money markets secured against existing mortgages. While we've been going through the "property only ever goes up"-mania investors have considered these mortgage-backed securities as low risk, and hence been prepared to lend cheaply against them. This is what has fuelled the mortgage-lending boom of the last few years.

Now that the bubble has burst in the US, and seems to be bursting here, investors don't want to touch these securities with a barge pole, and mortgage lenders are struggling to get money from the markets at a decent price. Even if things are not as bad as they seem, confidence in mortgage-backed securtities has been severley dented and is not going to magically turn around in a couple of months. Lenders will continue to find it difficult to find enough funds in order to lend at the rates they have been doing in the last few years, and will continue to restrict their lending. If these restrictions bite hard enough then prices will fall significantly, the lenders will restrict their lending further in order to protect themselves, prices will fall further, and we'll enter a vicious cycle called a property crash. In fact, I suspect we might already be there.

itsnever2lateisit?

Laughing_Man wrote: »

Is there some subtle difference between the two that I'm missing?

Hysteria;)

House prices will fall back to the point where the amount of lending available can fulfill the needs of those that want/and are eligable for one IMHO

The last house I lived in was built (incl land) for £726 in 1929 and has just sold for £335,000:eek: most of this increase has taken place in recent years and can only have been fuelled by the availablity of money by way of mortgages

stonethrower

The "credit crunch" will iron itself soon enough and mortgage costs will go down in my opinion, now that lenders are getting choosier about who they lend too. You'll look at the graphs in a few years and 2008 will just be a blip.

Maybe it will maybe it wont

http://business.timesonline.co.uk/tol/business/economics/article3706364.ece

oswestry123

I have been watching bbc news 24 and most economists are saying don't worry it will dip a bit this year but we aren't going to see a crash like in the 90's!! I brought in 2002 so my property would need to go down by over 50% for me to have lost anything and thats only when selling. I'm not upset by the drop though at all as I'm selling at the mo so even if I do have to accept a lower offer I'm going to get be able to offer lower on a new place so its all relative!!

izzybusy23

neverdespairgirl wrote: »

Why on earth do you feel inferior?

I just do. Don't get me wrong, I've had property before, but made the wrong mistakes in men (3 times, don't ask!) and each time I got completely shafted and had to rent. Now I really DO need a home as I have a daughter due to start primary school next September I can't afford one and feel like a failure.

It doesn't bother my DH, but it gets to me that I've let opportunities pass me by.

You know, my school friend who I hadn't heard of for a while got in contact with me via facebook. We were like twins when we were at school and afterwards. She now has this fantastic house in a desirable area and drives a BMW X5. Her attitude towards me has changed now she knows I rent and drive a Rover 25. She's far less chatty and tends to only reply to certain emails etc. I can only put this down to her thinking she is far superior than me.

Thats why I feel inferior!!!!

Stevenic

Treadmill wrote: »

If there is a crash I'll be interested to see who correctly calls the bottoming out of the market

This is where the real interest is going to be over the next few months/years. When will people feel it is 'safe' to buy and once they do will they then become cheerleaders for HPI?

And izzybusy23, please don't feel inferior to people who flash their wealth all the time, life is too short.

Treadmill

GavP wrote: »

Banks do not create money out of thin air.

yes they do.

http://www.conspiracytheoristclothing.com/moneyasdebt.html