Wednesday, May 14, 2008
Stuatz comedy club analysis - "property market is in serious danger of continuing to stagnate or even falling to some modest degree"
mortgagestrategy: Assetz chief: Bank should cut rates
Stuart Law, chief executive of Assetz, says the Bank of England should not use yesterdays spike in inflation as an excuse to hold back interest rate cuts........“There are however much bigger issues at stake. With mortgage lending down 48% since the same time last year the property market is in serious danger of continuing to stagnate or even falling to some modest degree. “I strongly suggest the Bank of England now lowers base rates very quickly to 3.5%"
Posted by jack c @ 02:14 PM (1435 views) Add Comment
23 Comments
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1. cornishman said...
No, the property market will be OK. Gordom Brown has just announced that he is going to buy lots of new unsold homes and use them for 'social housing'. We are all saved...
http://news.bbc.co.uk/1/hi/uk_politics/7399340.stm
er, a £200m fund - that makes about 1000 homes in total. Better than nothing, I admit - but a drop in the ocean in the great scheme of things.
The banks have all been bailed out. Now it's the turn of the developers to get GB to bail them out too.
http://www.building.co.uk/story.asp?sectioncode=284&storycode=3110826&c=3
2. dohousescrashinthewoods said...
"Falling to some modest degree" - so he's softening to the patently obvious, but hasn't yet even reached the Caroline Flint prediction level ;)
3. Crutchley said...
What a fool.. Iz he zeriously zuggezting that property 'value' iz a greater conzern than food, energy and other day to day costs?..
I spy someone who hasn't hedged his bets and is in danger of getting lynched by his stakeholders when prices come down - especially given his previous 'there wont be a crash' pontificating...
4. Rental John said...
Suggestions from a major VI !!!!
Even if interest rates were 3.5% - does he think the banks will follow suit with mortgage rates - get real! Even if interest rates were to go even lower than that - the housing market is mortally wounded....whilst banks will not lend and house prices remain too expensive. Interest rates can go up as well as down......also lower interest rates, weaker pound, and higher inflation....other than that - I would like to point out have no further time for Stuart Law - of '@rse-sets'. (sorry had a 'refain from using' message about the 'bottom word'}.
5. inbreda said...
I too think that the BoE should completely ignore inflation. In fact their official remit should be changed to reflect what is really important in society - Stuart Laws salary and personal well being.
Does he think the BoE work for him or something? Is he really that much of a tw@?
6. new user 2007 said...
I thought everything would be ok as no one was building houses and the "clever money" was going back in? Not sure I understand Mr ASSetz' concerns:)
How on earth can volumes collapse when there is so much pent up demand? Oh, that would be the reversion to mean by the very banks that inflated the market in the first place.
He gets funnier and more ridiculous with each story...obviously can't cope with the fact that the rubbish he spouts is being increasingly taken over by the numbers:)
I wonder how many of his ignorant clients he is having to convince that the government that has been saying "fundamentals" will support the market (as he says) has secretly inked in 5-10% plus falls:)
He also does not still know that the BoE has one mandate (prices) and that Mr King said today that to keep inflation down over 2 years rates could not fall to 4.5% even in 2009....
...they may well fall by more, but only if the economy weakens sharply. But that means even less lending and even more repossessions (higher unemployment)...I thought these usually result in lower prices?
7. Hubbers said...
Typical "Sell Low and Buy High" Brown
8. Peter Kiddle said...
Assetz's employment of Stuart Law is clearly depriving a nearby village of its idiot.
9. new user 2007 said...
p.s. "I strongly suggest". Obviously on his planet he is a credible knowledge guru and respected Economist that should be listened to without question, regardless of how far his logic is from reality....
He should read this slowly..."the BoE's mandate is for stable prices, because in the long run these determine stable economic growth".
Him saying the BoE should focus on housing to support the economy is incredibly self-indulgent and is clearly focussed on his own objectives. The MPC isincompetent and political , but they know more than him.
10. hpwatcher said...
Stuart Law.....what a big idiot.
11. Jackas said...
What a complete and utter moron.
I'm going to watch his descent into oblivion with joy over the next 12-18 months.
12. Ijjhall said...
'There are however much bigger issues at stake. With mortgage lending down 48% since the same time last year the property market is in serious danger of continuing to stagnate or even falling to some modest degree'.
And Chelsea won the league last Saturday not Man Utd...
13. letthemfall said...
"Ztuart Law, chief candidate for bankruptcy, says the Bank of England should not use yesterdays spike in inflation as an excuse for anything that will put him out of business.
He says: " Today’s hike is largely due to rising prices, nothing serious."
“There are however much bigger issues at stake. With mortgage lending down 48% my shabby little company is in serious danger of continuing to stagnate or even collapsing to some modest degree.
"The knock of confidence is already having dramatic effects on my spending on flashy cars and rubbish like that.
“I strongly suggest the Bank of England bails me out and throws free money at anyone stupid enough to do business with me.
"This should significantly protect against inflationary effects while producing windfall profits for me and not putting my ar5e under economic pressure from such a sudden change upwards in payable interest costs dribble dribble."
14. monty032 said...
It's good to see that even Stuart Law has now been forced to use the F-word - "falling".
15. little professor said...
As recently as last month he was sticking to his predictions of 5% house price rises in 2008.
16. Landedgentry said...
3.5% hahahahaha you joker!
Office a bit quiet Stuaarrtzzz? Phones not ringing like they were a year ago for the "luxury" 2 beds in manchester, or villas in bulgaria?
17. Timwest100 said...
I couldn't let this article go without making a comment, even though its been said above a few times.
Who does this guy think he is kidding? None of his remarks make any sense. They are very shallow disguises for tyring to promote his selfish interests by preteneding to support everyone else. Even the lousiest politions are a little more sophisticated than this.
"Bank of England should not use yesterdays spike in inflation as an excuse to hold back interest rate cuts" Hmm. He seems to have scribbled out the BoE's remit and written in "Help Stuart Law" in crayon.
I like the comment about depriving a nearby village of its idiot... Nice.
18. the haunted said...
Stuart Law = What a tool.
19. James said...
I love the way he says, whilst discussing cutting rates to 3.5%:
"This should significantly protect against inflationary effects"
HOW? WHAT?
20. Another Alan said...
One seriously discredited person.
21. it_is_going_with_a_bang said...
He says: " Today’s hike is largely due to rising food prices and energy costs and was not unexpected.
- What on earth has that got to do with it? it is still INFLATION. we are all still paying more aren't we?
What does Stuart Law mean? Inflation is only inflation if you don't expect it?
Or is it just a case of his predictions being completely wrong that worries him?
22. doom&gloom said...
"the property market is in serious danger of continuing to stagnate". That's absolutely terrible - everyone knows house prices are supposed to keep going up forever.
"I strongly suggest the Bank of England now lowers base rates very quickly to 3.5%...This should significantly protect against inflationary effects while producing windfall profits for the banks and not putting the country under economic pressure". My god man, we don't even need the MPC any more. Get Stuartz Arzetz in to run the show. He's an economic genius.
23. new user 2007 said...
The links (or lack of) he makes when talking about interest rates and their inflationary effects are astonishing...I think his logic is that if the cost of mortgages goes up so does the RPI and so then do wage demands. This of course ignores the broader links of domestic demand, capacity utilisation rates, wage bargaining power.
And if he was that concerned about the impact of the rising cost of accommodation and its impact on people's wage demands, perhaps he and Paragon should stop making up that rents are rising (or are these not going to have any impact on wage demands BECAUSE rising rents would, unlike higher mortgages, help his profits).
Bubbles and pyramids are built on ignorance. There are plenty of mugs that listened to this voodoo economics for us to end up where we are!