The real world economy
What does this tell us about the real world economy as opposed to the spin that is being fed by central banks and governments. And in another article by Reuters the other bellweather indicator of economic activity the Baltic Dry Sea index is at its lowest level of 29 years http://www.reuters.com/article/2015/01/29/baltic-index-idUSL6N0V868M20150129. If you don't believe in the vested interests sanitised propaganda, we could be in for frightening times.
Nationwide says annual rate of price inflation fell in January for fifth month running
""British Bankers Association showing that mortgage approvals for house purchases fell to a 20-month low in December dependent on banks responding to the rise in demand by increasing their lending volumes. If that part of the puzzle is missing, house prices are likely to struggle over the next year or so.â Nationwide said the average price of a UK home now stands at Â£188,446 â 2.4% above its pre-crisis level."" Is this slowdown in the rate of increase significant or just a pause for breath before another rampant year?
Are we on the verge of massive recession?
Boris stumps up
QE's dismal track record
Shows the track record of QE in the UK, US and Japan in failing to generate growth, jobs and incomes or to prevent deflation and succeeding in inflating asset bubbles and capital income - mentions London property - and in aggravating global inequality and currency wars. In fact the QE effect on growth is negative since it redirects investment into financial speculation. It has led also to currency wars as others respond to the currency-weakening effect of QE (Switzerland's response catered for global investors using it as a tax haven and money-laundering shop). The dearth of real investment means that these wars are about countries stealing each other's growth/export trade when the pie itself is shrinking (including de facto devaluation within the â¬zone by cutting costs, i.e. wages).
The dangers of pricing London as if it's a landlocked peninsula like Manhattan, Hong Kong etc.
Most of the new homes being built are two-bedroom apartments in high-rise towers and many are being sold to âunsophisticatedâ foreign investors, said Charlie Ellingworth, the founder of Property Vision. âIt is unlikely that investors are going to see the sort of yields that they have been led to expect,â Mr Ellingworth warned. âThe pool of buyers may extend to the whole of China, but the pool of tenants is pretty static.â The owner of a Â£1m, two-bed flat would need to charge Â£30,000 to Â£40,000 a year in rent in order to make a gross return on their money of 3 to 4 per cent, Mr Ellingworth said. âThere are not many people in London who can afford that.â
Cost to build: 10m Sale price: 3.4m - the real face of deflation?
Mail: Scotlandâs most expensive modern home that backs on to Gleneagles is up for sale for Â£3.4million
The property had originally cost Â£10million to build and is thought to be Scotland's most expensive modern home Built in 2007, it boasts a gymnasium, cinema, spa, a two-bedroom house, billiards room and a man-made lake Its previous owner is former Rangers FC shareholder Graham Gillespie who went bankrupt in 2012
On The Market opens tomorrow
Homeowners who want to sell their properties are being warned that from tomorrow they could miss out on potential buyers, as thousands of estate agents will stop listing homes on either Rightmove or Zoopla. A serious challenger to the two sites, onthemarket.com, goes live on Monday and agents who sign up to it will do so on the condition that they stop listing on one of the other two property portals. Between them Rightmove and Zoopla get 100m hits a month. How will this site impact the current market?
What is in store when we follow suit, as promised by Carney
Interest rates on the Swiss mortgage market continue to drop. The year 2014 started out with a surprise: in the first quarter of the year, the interest rates for fixed-rate mortgages sank again â after an interim high in the previous year. - 10-year fixed-rate mortgages started at 2.7 percent in January 2014 and reached a new, historic low of 1.8 percent by the end of the year. - 5-year fixed-rate mortgages exhibited a similar curve. Their interest rates were at 1.8 percent at the beginning of the year and likewise dropped to an all-time low of 1.3 percent at the end of December. They currently are at the same level as 1-year fixed-rate mortgages.