Interest Rates - BoE should cut them or the governer should go!

Dan_1976

True. We have to be careful. Times like this have spawned wars and helped facist dictators get in to power. Sounds harsh but look back in history, both far gone and more recent. Communism falls and poverty hits places like the USSR and poland etc and all of a sudden skin heads and nazi's are all over the place!

Man thats heavy, I think I need to go to bed!

Gorgeous_George

Dan_1976 wrote: »

True super.

Sounds like an ABBA song.

GG

Turnbull2000

SuperV wrote: »

Read again. I am not against house prices falling, I am against crash. And the crash already happened, it can become only worse.

10% fall in absolute terms + 5% inflation + 10% fall in sterling = calculate yourself using whatever system you want.

If the crash happen, it will overshot. A lot of families will not be able to find deals so they will lose houses. And so on... then in 5,10, 15 years there will be another rush, another house price bubble and so on...

If the price of houses stagnate for 4-5 years, inflation will eat their values.

Second reason - the whole British economy depends on housing market (because of some "smart" ideas...). Kill the market and it will kill economy. FTB will not have jobs, nobody will offer them deals without guarantee.

You want that?!

Ohh, give me a break. Your post just proves the absurdity of it all. It's not that everybody wants this collateral, it's that we'll get it whether we like it or not. Personally, I'm past caring. The economy can get trashed, but safe in the knowledge that the long-term prospects for younger people will be greatly improved.

SuperV

Turnbull2000 wrote: »

Ohh, give me a break. Your post just proves the absurdity of it all. It's not that everybody wants this collateral, it's that we'll get it whether we like it or not. Personally, I'm past caring. The economy can get trashed, but safe in the knowledge that the long-term prospects for younger people will be greatly improved.

Long term prospects of young people will disappear if the economy gets trashed, you can be sure. Let us know how will they prosper? Try to rebuild everything?!

:beer: In a pub?
:rotfl:

SuperV

Turnbull2000 wrote: »

Ohh, give me a break. Your post just proves the absurdity of it all. It's not that everybody wants this collateral, it's that we'll get it whether we like it or not. Personally, I'm past caring. The economy can get trashed, but safe in the knowledge that the long-term prospects for younger people will be greatly improved.

By the way, it seems that collateral damage is ... something acceptable?

Turnbull2000

SuperV wrote: »

Long term prospects of young people will disappear if the economy gets trashed, you can be sure. Let us know how will they prosper? Try to rebuild everything?!

:beer: In a pub?
:rotfl:

Umm, no. The downturn will weed out waste, excess public spending and ensure more affordable housing once it's over with. A few years of pain for decades of improvement.

Turnbull2000

SuperV wrote: »

By the way, it seems that collateral damage is ... something acceptable?

Oops, thanks instead of quote .

Doesn't make any difference if it's acceptable or not. It's inevitable. Just like there's been victims of the supposed boom.

You ain't got a clue, and sound more like a wind-up merchant. **plonk**

Francesanne

ronaldmacdonald wrote: »

Interest rates are NOT high at all. Mortgate rates are HIGH - but then again they appear to have become detached from BoE rates. That link needs realignment.

The mortgage rate hit 15% in the 1980's - that's what I'd call high.

SuperV

Turnbull2000 wrote: »

Umm, no. The downturn will weed out waste, excess public spending and ensure more affordable housing once it's over with. A few years of pain for decades of improvement.

Well, no. At the beginning of 90's USSR disappeared and the whole economy of ex Easter Europe plunged 50%. Price of oil as the main energent was very low as well. So, it was easy to finance grow.

Situation at the moment it different. Oil is expensive, China, India, Brasil and Easter European countries are growing fast - it will be expensive to finance grow.

So - it will be few years if there is a reaction tomorrow, 10 years if there is a reaction in the next 12 months and who knows how many if nothing is done.

But, it seems that doing nothing is not an option any more.

SuperV

Turnbull2000 wrote: »

Oops, thanks instead of quote .

Doesn't make any difference if it's acceptable or not. It's inevitable. Just like there's been victims of the supposed boom.

You ain't got a clue, and sound more like a wind-up merchant. **plonk**

There is a huge difference. Saying that something is inevitable just is an excuse to be immoral.

And your post is immoral.

Re how much clue I have - read the whole thread, it is now 3 months old - 3 months ago I predicted that the end of summer will be bloody.