Where will this rising inequality lead to?
For all of those that think central London housing will sky rocket forever with international wealth pouring in, its worth listening to what this multi, multi millionaire has to say about the growing equality and what has always historically happened in the past. If we look at the growing movements in Greece, Spain and wider problems around the world and the fact that major capitals have increasing numbers of properties vacant and used like cash deposit boxes by wealthy investors, how long has this house of cards got,? This was filmed some months back and already we can see more events unfolding.
Crazy Libertas is not so crazy any more.
just earlier today we, rhetorically, asked a logical - in as much as nothing is logical in the new normal - question: "Who will offer the first negative rate mortgage". Little did we know that just minutes after our tweet, we would learn that at least one place is already paying homeowners to take out a mortgage. That's right - the negative rate mortgage is now a reality. Thanks of Mario Draghi's generosity with "other generations' slavery", and following 3 consecutive rate cuts by the Danish Central Bank, a local bank - Nordea Credit - is now offering a mortgage with a negative interest rate!
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