Trade deficit

FT: UK trade deficit swells to eight-month high

One of the responsibilities of the central bank is to manage the trade deficit by raising interest rates, however, Carney for some reason never does this. So it continues on. The UK is all over the place really I wonder how long it can all last.

Posted by stillthinking @ 12:31 AM 2 Comments

Wednesday, Aug 16, 2017

Fewer houses for sale

Business Insider: Barclays: housing transactions are in structural decline

Nothing to add.

Posted by stillthinking @ 01:36 AM 3 Comments

Tuesday, Aug 15, 2017

I thought house prices were dropping...

Telegraph: Housing market speed towards 'crisis point' as average price rises £10,000 in a year

House prices in the UK increased by £10,000 in the last year on average, according to official figures, with estate agents warning that affordability of houses is reaching "crisis point".

Posted by hpwatcher @ 12:44 PM 3 Comments

Friday, Aug 11, 2017

Auto enrollment torpedo incoming

CityAM: The pensions submarine will sink low earners with auto-enrolment torpedos

By 2019 wage costs for employers are going to rise, while at the same time wages received by employees is going to fall. Consider this with the previous post.

Posted by stillthinking @ 02:16 AM 2 Comments

Credit issues

Business Insider: What Carney knows but doesn't say

excessive credit as per usual

Posted by stillthinking @ 02:11 AM 1 Comments

Thursday, Aug 10, 2017

Grand old duke of York v. Bulls and bears

The Guardian: House price slowdown is excellent news – even if estate agents disagree

House prices and a story about betfair / paddy power merger...subliminal reference to punting the market, perhaps ???

Posted by techieman @ 06:49 AM 1 Comments

Thursday, Aug 3, 2017

Ch-ch-ch-ch-Changes

Economist: A little-noticed change in Britain’s housing market spells trouble for everybody

The market for London’s fanciest properties looks weak and overall price growth has slowed, but Britain’s housing market hardly appears to be in freefall. Poke beneath the surface, however, and it looks as if trouble is brewing. Britons are buying and selling houses less frequently than they once did. Official data suggest that the rate of residential transactions this year is set to be the lowest since 2013. The number of sales in parts of London is approaching an all-time low as home-buyers become more cautious about their personal finances.

Posted by jack c @ 02:56 PM 18 Comments

Tuesday, Aug 1, 2017

Buyers market round the corner

Dailymail: Sluggish houseprices buyers market round the corner

things dont look too good out there and that with all the props.The only thing they haven't tried is giving money away free which they did in japan but it didnt stop prices falling as much as 90% and even 23 years later they are still 40-60% less

Posted by taffee @ 10:59 AM 11 Comments

Thursday, Jul 27, 2017

Caveat emptor

Grauniad: Leasehold houses and the ground rent scandal

Apparently much of the newbuild stock of houses has leasehold arrangments, with clauses such that the ground rent doubles every 10 years! So a guaranteed return to a spiv or offshore entity (ultimately the same) of 7% p.a. I won't bore you with the anecdote about the chessboard and the exponential function, but by 2060 many houses would have groundrent charges of over £10,000 p.a. And so by 2090 £80,000 p.a. In related articles, a figure is given of 42% of new houses with leasehold, and it is pointed out that England is one of the few places in the world where leasehold remains, it being formerly spread through the Empire. Christ...

Posted by nickb @ 06:23 PM 3 Comments

Monday, Jul 24, 2017

QE, source of asset-price inflation and rising inequality

RT: QE, the largest transfer of wealth in history

QE has inflated the prices of property and other assets and in other ways enabled the wealthy to steal the wages of workers, in addition to causing havoc in 'emerging markets'. But what's do be done now? If the Fed, BoE and ECB unwind QE, sell govt securities into the market and raise IRs that's a lot of taxation to be raised to pay off the interest on the national debt. The Fed, e.g., is planning to do these things, with fed funds rate going up to 3.5%. Eventually US taxpayers would be paying bondholders over $800bn a year in interest alone. Is Japan on the right track? It creates lots of money for the BoJ to buy back the govt debt and to pay the interest to the govt - an interest-free debt rolled over each year - effectively a debt cancellation.

Posted by icarus @ 01:15 PM 8 Comments

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