Wednesday, Feb 17, 2010
Are we in fairytale land-yes!
Citywire: New banks rules could mean mortgages jump 33%
How long can this charade go on? Everyone knows interest rates have to rise... and will... but banks are lending to people who when it happens won't know what happened... This is the reason why the credit crunch happened in the first place.
Posted by taffee @ 09:31 AM (1421 views) Add Comment
14 Comments
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1. yorkshireman said...
Biting the (taxpayers) hand that feeds them ? Some mistake surely.
2. taffee said...
raise interest rates,build council houses,let the housing market correct
result......repossessed people can get a council house,banks get more capital,banks more inclined to lend as asset prices fall
3. mark wadsworth said...
@ Taffee, that's music to my ears, but if we let the housing market correct (i.e. prices would halve) they wouldn't need to raise interest rates as lending on mortgages would be far less risky. And we can speed up house price correction by replacing as many taxes as possible with .... ..... tax, of course.
4. taffee said...
I think we have forgotten that historic interest rates are around 6%...why do people think we will not return to that level?..The reason that is the historic average is so people save and asset bubbles are avoided and banks have capital to lend to businesses...its not rocket science
5. Stevie B. said...
"JP Morgan calculates that prices on all products - retail banking, commercial banking and investment banking - would have to increase by an average of 33% if current levels of profitability were to be sustained."
It's all just JPM they-would-say-that,-wouldn't-they propaganda
6. Crunchy said...
2. taffee
look into "Agenda 21."
A different perspective that starts to make more sense as this whole charade developes.
7. Crunchy said...
On a side issue.
It has been some time now that Uncle Tom or Japanese Uncle have posted. Can anyone shed some light?
JU with his savage and stinging one liners (The Freight train) and UT with honest money burning a hole in his pocket. (itchy feet)
?????? I'm intrigued.
8. Ndg said...
Oops-up-side-your-head. Migraines must be escalating.
New paradigm. Hard to get to grips with as you can't balance the past as a prediction for the future anymore. Could be good fun actually. Anything becomes possible. So only positive vibes please!
9. mark wadsworth said...
Crunchy, that's true you know. We need JU predicting that house prices will fall by 90% peak-to-trough and UT with his clever calculations.
10. mr g said...
"Everyone knows interest rates have to rise... and will... but banks are lending to people who when it happens won't know what happened..."
Since October 2009, 3, 3 bed semi detached houses on the same road in a mediocre area of Leeds have sold for, in order of sale, £115k, £135k and £140k, the only difference in the properties, I am told, is the state of the decor.
The point I am making, and I hope that this doesn't sound patronising or elitist, is that this is hardly the type of area where an up and coming "executive" or professional would choose to buy into.
Consequently, I presume that the buyers are manual workers (nothing wrong with that, been there done it etc) and / or people on lower to mid earnings who, I suspect, are less financially savvy and are jumping in before prices go higher. Unfortunately, when interest rates rise, I suspect they will be the “people who when it happens won't know what happened..."
11. happy mondays said...
Ju is on the ball, he knew how much a jar of pickled onions had gone up from 1 year to the next & Ut again a person i would listen to & respected his knowledge...I am sure they are still viewing from time-time..
12. Crunchy said...
11. happy mondays
That's why I'm intrigued.
13. freemanphil said...
Only 33%?! Prices must probably rise 100 fold to bring us away from this current fraudulent system.
14. braindeed said...
Nice to seeMunchy .
a bit more relaxed