The first banker to say, if you can't pay it should go in your credit file. Banks need to know your are not a good and liquid borrower.

This effectively would be paying off peoples mortgages for free. I'm a bit surprised that there hasn't already been a revolt amongst savers. I have lost count of the number letters I have received saying my savings rates have been reduced to figures like 0.05%

Posted by tenyearstogetmymoneyback @ 03:45 PM 6 Comments

Well is people ever bothered to pay for what they buy, the wouldn't buy at the stupid prices they agree to in the first place.

Interesting to see how the growth in house prices as I put in a couple of days ago adds up here. As people are lining up for food banks, some people think house prices are going to go up

There is no information about the value at what these are traded. One thing I learn't in my stats class, if the numbers are not big enough and transactions are at margin the value / price is not valid. But that is something that the housing index providers will never tell you. Even if one house of sold at the high price they will quote all of them at high price. That is how they remain in business.

I do understand this is for US market, with over 30 million people loosing their jobs, I'm not sure who are buying this homes at an increasing prices? How these numbers can even be arrived at. Would people in difficulty not try to sell to whatever they can get and move on. During the 2008 crisis everything was so leveraged that when only few people started to fail the dominoes started to unravel very quickly. Now the debt level are even higher in the system, not sure how this is even possible?

Remember NINJA loans, you don't need any income or assets to get a loan. 80% income is still too much as long as you want to buy at an inflated price to keep the house prices up, we got the money. When you can't pay then there can be forbearance and its the banks fault to lend to you rather than your greed. If all fails, others will bail out the banks for lending to you. And the economy continues.....

Posted by deepak @ 11:24 AM 6 Comments