Debt doesn't matter if you plan to default on repaying it

Maxkeiser: This is why talk of UK recovery is nonsense. Osborne’s shock growth in UK debt.

At 9.30am 2moro @ONS data will confirm George Osborne has grown National Debt more in 4 yrs than Labour did in 90 yrs

Posted by khards @ 01:42 PM 14 Comments

The Tories should be appalled - but what should they do about it.....

Torygraph: Honest work can't put a roof over people's heads: true Tories should be appalled

Its good we have political consensus growing for reducing the cost or housing. While I think building more houses is important - it is of far more fundamental importance to enact policies that reduce rents and house prices, shifting the tax burden being the first.

Posted by pete green @ 10:57 AM 3 Comments

Well, this should be easy to monitor and enforce

Daily Mail: The mortgage inquisition: Borrowers face tough new quiz..

The FCA's new 'macroprudential' regulation of mortgages to rein in house price rises. Mortgage applicants are to face 'invasive' and 'inquisitorial' questions about their finances and lifestyles in an interview lasting 'up to 3 hours'. There will be stress tests like: what if IRs rose sharply, say to 7%. And there'll be far fewer short, fixed-term teaser rates and virtually no interest-only mortgages. Ray Boulger thinks it's silly.

Posted by icarus @ 09:51 AM 20 Comments

Tuesday, Apr 22, 2014

The shape of things to come - probably pensions and more QE next.

Zerohedge.com: Martin Armstrong Warns "Abandon The UK Before You Can't"

''The politicians have squandered everything and now they are hunting down capital everywhere and the view is people have to pay whatever they demand or you are just a criminal.''

Posted by hpwatcher @ 08:21 PM 2 Comments

London has started to crash

Mindfulmoney: Three reasons not to rush into housebuying now

I came across these charts while trying to figure out the best places to hunt for houses in London on a value-for-money basis; I think they speak for themselves… Slump in new buyer enquiries and the gulf in house prices has never been greater. These three charts seems to suggest that the sharp surge in London house prices over the last few months could be at risk of cooling or even partially reversing over the next few months, hard though it may be to believe at the moment!

Posted by khards @ 06:08 PM 24 Comments

Very surprising stats and some interesting conclusions

BBC News: Is the UK mending fast enough?

Not what I expected at all, tbh. Last info I'd read on UK debt was in the Economist last year, accurate at Sept. 2012. It turns out the situation has much improved since then, but only as a % of GDP. Banking debt has apparently fallen significantly, though.

Posted by reticent @ 06:07 PM 6 Comments

Economists warn on toronto bubble

Huffington post: Average toronto price $1 million

Thought it was Interesting how similar this is to london/uk...particularly in the comments lots of talk about shortages etc but most telling was that in reality its super low interest Rates that make these prices affordable.btw Mark Carney caused this.as he was the canada bank Boss..so I thought it was relevent

Posted by taffee @ 04:03 PM 0 Comments

Keiser does the housing super bubble!!

RT: Keiser Report - Episode 591

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the rentier rising from the dead, generation debt and harvesting the young with student debt. In the second half, Max interviews Ross Ashcroft about the housing super bubble in London and what it means to the rest of the economy to have a rentier class in charge.

Posted by khards @ 12:44 PM 2 Comments

The new rentier pradigm

Daily Kos: Housing Secretary: “the worst rental affordability crisis that this country has ever known"

What if our economic crisis was not the start of a House Price Crash but heralded a new rentier economic paradigm in the west. Bringing back the days of serfdom between renters and house owners , BTL landlords and the new breed of corporate landlords we see in the states. Are the poorest and youngest to give half of their income straight to the landlord or banks' enshrining poverty unless your lucky enough to inherit a house. I am sure rentiers wish this to happen where landlords and banks pluck half the incomes from the majority of productive workforce, but could a system happen and could it be stable?

Posted by pete green @ 11:15 AM 41 Comments

Saturday, Apr 19, 2014

Here's your answer, Mr Weale (see lib's post)

Zero Hedge: Chief economist (of BIS): (QE) is extremely dangerous

Ex-BIS man says QE was meant to get seized-up markets going again but that aim has morphed into inflating asset prices to get people to spend (or is it to make the rich richer?). But QE doesn't tackle the excessive debt that caused the problem in the first place. The solution to that is write-offs, restructuring, recapitalisation. But QE is la la land where nobody needs to do anything while big problems stack up unseen - mainly zombies which suck the life out of the healthy parts of the economy. And it's worse than 2007 because emerging economies have been sucked in to the world of debt/liquidity-driven bubbles. And moral hazard is now worse among bankers. He says that Japan is in a particularly bad place and that "(with QE) housing tends to be the big thing that goes wrong".

Posted by icarus @ 11:12 AM 47 Comments

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