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Preventing Another Housing Bubble Must Be Boe's Priority


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#1 timebandit

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Posted 08 April 2012 - 09:28 PM

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

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.


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#2 SarahBell

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Posted 08 April 2012 - 09:31 PM

Taxpayer owns too much of the banks to let them crash.
Whoever you are, I have always depended on the kindness of strangers.

#3 awaytogo

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Posted 09 April 2012 - 01:53 PM

Not at all. My advice to anyone wanting to buy my house would be to do so quickly while the price is so cheap.


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

Theres no Money for a Boom.

Edited by awaytogo, 09 April 2012 - 01:54 PM.


#4 winkie

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Posted 09 April 2012 - 02:00 PM

.....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. ;)
What you don't owe won't worry you.

Less can be more.

#5 neil324

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Posted 09 April 2012 - 02:06 PM

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, 09 April 2012 - 02:06 PM.


#6 KingBingo

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Posted 09 April 2012 - 05:56 PM

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

Theres no Money for a Boom.



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

Thecrashingisles may actually be right.
The truth is that the economies of rich countries, including the UK, are being kept alive by another and astonishingly under-reported bull market in government debt. This is the bond bubble; and when it bursts, as it surely will, the result will be a recession far deeper than the crash from which we are trying to recover.

Allister Heath
17 September 2011

#7 awaytogo

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Posted 10 April 2012 - 12:31 PM

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

Thecrashingisles may actually be right.


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

#8 eric pebble

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Posted 10 April 2012 - 01:28 PM

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.


Yup ---- and all fuelled by PREDATORY LIAR LOANS.

.
:rolleyes:
What the media today are still not telling us in full - for some reason the lid is being kept on the whole story:
HERE IN THE UK: THE UK SUB-PRIME CATASTROPHE - IT IS NOT ONLY IN AMERICA!! THE UK LIAR LOAN INDUSTRY - Source of FICTITIOUS "MONEY", and the principle driver of the House "Price" Pyramid/Ponzi Scam & Bubble, the "Credit Crunch" - and an unacknowledged major part of and cause of the ensuing Worldwide Financial Crash.
---------------------
The following was reported in a superb documentary in late 2003 - This is now over 10 years ago!! Since then shamefully little has been done here in the UK by journalists/broadcasters to dig down deep on this story - a vast elephant in the room: Why? If you're a serious journalist - here's your story - start investigating - it is the biggest financial scandal of all time:

THE ARTICLES BELOW ARE FROM AS FAR BACK AS 2003!!

Mortgage customers 'urged to lie' - All this was way back in 2003 by the way!!
Housebuyers are being encouraged to break the law in order to obtain huge mortgages, the BBC has discovered. Brokers, and even banking staff, have been telling buyers to lie about their incomes to get bigger and bigger loans. And these underhand tactics could also be the reason why house prices have gone on rising for so long.
CLICK HERE - http://news.bbc.co.u...ess/3222053.stm

"Could you believe that a bank would invite customers to defraud it? It may sound incredible, but that is what some of Britain's biggest mortgage lenders have in effect been doing."
CLICK HERE - http://news.bbc.co.u...ess/3478635.stm

The BBC Money Programme uncovers massive mortgage fraud [2003!]: BBC TWO's The Money Programme has revealed a huge mortgage fraud with brokers from some of Britain's biggest estate agents and financial advice groups advising customers to break the law and lie about their incomes to get massively bigger mortgages. And it shows how the illicit cash raised by this method has been pouring into the housing market, boosting prices and leaving many people risking financial ruin.
CLICK HERE http://www.bbc.co.uk..._mortgage.shtml

AND READ THIS: - http://www.housepric...howtopic=152508
-----------------------------
WATCH THE VIDEO OF THE 2003/4 DOCUMENTARY HERE: -
Click on parts 2 & 3 as you go along watching this video.
------------------------------
AND WATCH THE LATEST VIDEO OF LIAR LOANS STILL IN ACTION HERE in 2008 - http://news.sky.com/.../20080641317257

#9 awaytogo

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Posted 11 April 2012 - 06:14 AM

Yup ---- and all fuelled by PREDATORY LIAR LOANS.

.
:rolleyes:


And what a mess the we have been left with.




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