The bust begins

epz_2

Generali wrote: »

It's a pretty good one!

I worked for HSBC many years ago and it's one of the few banks I'd own shares in (not right now of course but in general).

they certainly know how to squeeze the pennies on the ground floor, they only moved their call center and bank staff computers over from OS2 to windows XP last year !!!!!!, OS2 was stillborn 13 years ago lol.

chrisandanne

Thanks...yes I suppose I've been naive in thinking that politicians and governments are working for the good of the country...........silly me...must get out more !!!.

I was in a shop yesterday and the owner was bemoaning the fact that his daughter had just had her 100% mortgage withdrawn on a new build flat, I ventured the opinion that she may have had a lucky escape, and if she waited 12 months and saved a deposit she would likely get a better deal....ooh no, she can't save a deposit, she never will..was his response.

It's only my opinion but I think people who have no money shouldn't be buying houses on 100% tick....house prices going down is not new, it seems so reckless. But like I said I tend to be a bit naive...but there again I have no debt either. Ax

RichyRich

chrisandanne, you're right, politicians and governments should damn well work for the best interests of the country, but sadly they work more for themselves, wanting to keep the power they've got, and the best way to do that is to keep "achieving" short term goals that keep them popular. You're also right that people with no money shouldn't get 100% mortgages, but who are we to tell people? People are so adamant that house prices only ever go up; even speaking to my father he believes this and was born in 1961 - I can't believe how short peoples memories are! "It's ok, it's a house, we must borrow as much as we can to get whatever we can otherwise we won't ever get on the housing ladder and won't ever be able to afford anything" - that being the attitude of so many young people these days - doesn't it strike you just a bit like a bubble?!?

One humerous thing I heard recently was someone at work bemoaning how young people couldn't get onto the property ladder because house prices are so expensive. I asked her whether she owned her house and she proceeded to tell me that she did and how much profit she'd made on it. I asked her if she was so upset about how hard it was for young people to buy houses whether she'd be willing to sell it (providing she was moving anyway) at a discount to its market value in order to facilitate young people being able to afford houses....you can imagine the response I got! Concerned indeed :-p

chrisandanne

Richie, I do agree with your Dad that house prices always go up IN THE LONG TERM, in the short term they go up and down of course, I wish people would realise that investors make profits from property, home owners don't have profit they just have homes... and if they have a mortgage they aren't even homeOWNERS.....
This equity obsession seems new to me, I was in the housing market from 1972 to 1999 (they went up and down up and down) and we never thought about it, we just paid the mortgage and hoped they wouldn't keep putting up the interest rate. (They did !!) Ax

Microstar_2

Its amusing to see people blaming 'the government' for HPI. I can think of a few TV presenters who are more culpable than Gordon Brown. Still, its easier to focus the blame on easily identifiable Ministers than on a bunch of rather anonymous bankers. Reading some of the papers this year you would almost think that the Government purposely put Northern Rock out of business - the board and the shareholders (who were supposed to keep an eye on the company) have not received as much criticism as I would have expected.
The Government are relatively powerless - in the short-medium term. They can tinker at the margins with Stamp Duty and various ownership schemes. In the medium-long term they could alter planning regs (and probably incur the wrath of lots of middle-class voters - look at what's happening with eco-towns). Most property owners like values to rise and don't like new building in their neighbourhood.

chrisandanne

That's why I asked the question how much say does the government have in bank lending regulation, the answer seems to be very little.

Banks are a business after all, and if they see a way to make money out of gullible punters they are going to take it...it will be interesting to see what they come up with now.....not only on the house lending front, all this easy credit has been amazing... a whole generation taught that if you want something, even an education, you borrow the money. I would love to see the banks get their fingers burnt (but I don't think I will).

I think people believed if the bank said it was o.k to borrow loads of money then it must be o.k. There are a lot of silly people but I feel sorry that they may lose their homes. Ax