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timebandit

Preventing Another Housing Bubble Must Be Boe's Priority

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Another housing article by the Guardian for bears if you are still hungry for more?

[quote]Easter is traditionally when the housing market comes out of hibernation – and if ever there were a time when it might be imagined activity would be buoyant, it would be this year. The Bank of England has pegged the official short-term interest rate at 0.5% for more than three years and is now part-way through a third round of asset purchases, which will in total boost the money supply by £325bn.

For the past four decades, cheap credit has been the catalyst for property booms. That was the case in the early 1970s, when Threadneedle Street abandoned direct controls on lending and then watched helplessly as prices rose by 50% in 1973. A second bubble followed 15 years later as a result of a toxic mix of financial deregulation, cuts in interest rates and the pre-announced abolition of double mortgage relief. In the years leading up to the financial crisis of 2007, borrowers could secure loans at high multiples of their income with few questions asked.[/quote]

[url="http://www.guardian.co.uk/business/2012/apr/08/housing-market-bubble-bank-of-england?CMP=twt_fd"][b]Click for full story[/b][/url]

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[quote name='thecrashingisles' timestamp='1333923608' post='909009328']
Not at all. My advice to anyone wanting to buy my house would be to do so quickly while the price is so cheap.
[/quote]

:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

Theres no Money for a Boom. Edited by awaytogo

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.....we can't afford another debt bubble......while people are spending more than half their income repaying theirs or others debt they have nothing left to spend with. ;)

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We will all be in care homes or worse by the time this lot gets worked out the system the way they are going.

And they are already talking about the next one :lol: Edited by neil324

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[quote name='awaytogo' timestamp='1333979629' post='909009713']
:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

Theres no Money for a Boom.
[/quote]


Its early in the week. The government inkjets have been off for the bank holiday weekend.

Thecrashingisles may actually be right.

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[quote name='KingBingo' timestamp='1333994208' post='909009840']
Its early in the week. The government inkjets have been off for the bank holiday weekend.

Thecrashingisles may actually be right.
[/quote]

When have you heard of people being given money from any QE money to buy a home.

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[quote name='Milton' timestamp='1333923286' post='909009319']
Under Labour the Average House Price TRIPLED in a decade, whilst the median UK wage rose by just £6.5k.
Utilities also TRIPLED under Labour, and Council Tax DOUBLED, plus we saw rising inflation in other staples like Food.
It was all a giant Ponzi scheme.
Basically if you didnt get onto the 'housing ladder' at the appropriate time, and ended up 'priced out' as house prices rose year after year, YOU ARE F*CKED FOR LIFE.
Youve worked for over 13 years hard graft, with nothing to show for it. No Capital.
[/quote]

Yup ---- and all fuelled by [color="#FF0000"][size="4"][b]PREDATORY LIAR LOANS[/b][/size][/color].

.
:rolleyes:

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[quote name='eric pebble' timestamp='1334064502' post='909010514']
Yup ---- and all fuelled by [color="#FF0000"][size="4"][b]PREDATORY LIAR LOANS[/b][/size][/color].

.
:rolleyes:
[/quote]

And what a mess the we have been left with.

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