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Methinkshe

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Everything posted by Methinkshe

  1. But of course it might be expensive to build. But if an individual, unhampered by a need to apply for planning permission, is prepared to pay whatever premium dictated, then why not? It cannot be worse than the grotty 60/acre developments that are already ruining our villages.
  2. I live in the middle of nowhere on the Cornwall and Devon border and I've watched as PP has been granted on a field here and a field there that fall within the local development plan for our nearest village.. Tiny houses, totally out of keeping, get crammed into the available space. Surely it would be much better to dispense with PP and just allow those farmers whose land fronts a main road and thus where there is access to electricity and water, to sell off a few individual plots than to keep strictly within boundaries drawn by planning officials which means high density housing that is totally unsuited to the area. Yes, you could argue that ribbon development might ensue, but then again if, as you suggest, some individuals were prepared to pay for additional cultivable acreage and not just a minimal sized plot, this could break up the tendency toward ribbon development.
  3. I still think that it wouldn't be an impossibility, assuming a tighter rein on credit, to dispense withh PP and let those who own land sell at agricultural prices and let people build at their convenience but only on a one-off basis - owner occupation only, which would prevent developers from cramming in 60 per acre.
  4. At the time I didn't think we could afford the mortgage required - about 4.5 x income. These days that would be considered more than acceptable! But then again, I wasn't to know that capital gains would come to our rescue. I honestly didn't believe that there was another round of re-inflation left in the housing market. Turns out there were another 2 rounds!
  5. Maybe if you could sit tight for a few years you could get a bargain. Biggest deal I never did was not to buy our rented house in 1996. Rent was £500 pcm - quite a lot in those days - but it was 5-beds, indoor swimming pool in 6 acres. Could have bought for £130,000. Last year I noticed it sold for £850,000.
  6. But just consider all the old quirky houses that were built BEFORE PP was an issue? Bits of Georgian added to Tudor topped off with some Victoriana - would never have got past today's planners. But these houses are now considered a delight and sell for a premium. Maybe one generation's monstrosity is the next generation's characterful property. In any case, could the individual do any worse than the council homes of the 50's and 60's, the tower blocks of the 60's and 70's, the Wimpey and Barrett houses of the 80's and the new-build flats of the nineties and noughties? If this is what planning committees advocate, I think I could tolerate a few individually designed monstrosities! At least they'd be one-offs! Edited for typos.
  7. For a long time savers have been penalised in comparison with mortgage debtors so it's about time the balance was redressed, and it seems to me entirely possible that cash-strapped banks will have to offer very attractive savings rates to depositors if they are to rebuild their depleted balance sheets - that is, if they want to, or even can, survive without recourse to Saudi or China Sovereign Funds which is appearing less and less likely.
  8. Not land per se but the artificially inflated value of land with PP. That's the point I was addressing in my previous post: So what is the REAL cost of, say, a three-bed house of x sq ft? i.e. materials + labour? Forget the land cost for the moment - that is artificially inflated via the PP system. What SHOULD a small family home cost in terms of current labour and materials costs? And how much SHOULD a plot on which to build the house cost? I've often wondered what might happen if houses could be built anywhere to any individual design. I know, it sounds like chaos would ensue, but is that really true? Remove the added value of PP and a building plot would fall back in value to being worth no more and no less than the number of potential buyers competing to buy that plot, which in turn would depend on the desirability of its location, local services and amenities, etc etc. In other words, PP creates a false market. And if people spent their hard-earned cash building design monstrosities, then they would end up the losers because they'd never find a buyer! In other words, perhaps people ought to be trusted to make sensible decisions without heavy-handed govenment regulation.............
  9. It's not that we disagree that the government would LIKE to kick-start HPI again, it's that we don't believe that they CAN engineer it this time around. Of course the government want to prevent a HPC. But how do you think they are going to do it? Easy money isn't the answer once sentiiment has turned - which it has - and banks have are facing a solvency crisis - which they are. It is not possible for interest rates to fall below zero - i.e. for banks to PAY people to borrow! Read what happened in Japan when sentiment turned and instead of borrowing to buy assets the whole population started saving and repaying debt. Never underestimate the power of sentiment - it is what drives and controls markets - not governments, even though they'd like you to think they do.
  10. So what is the REAL cost of, say, a three-bed house of x sq ft? i.e. materials + labour? Forget the land cost for the moment - that is artificially inflated via the PP system. What SHOULD a small family home cost in terms of current labour and materials costs? And how much SHOULD a plot on which to build the house cost? I've often wondered what might happen if houses could be built anywhere to any individual design. I know, it sounds like chaos would ensue, but is that really true? Remove the added value of PP and a building plot would fall back in value to being worth no more and no less than the number of potential buyers competing to buy that plot, which in turn would depend on the desirability of its location, local services and amenities, etc etc. In other words, PP creates a false market. And if people spent their hard-earned cash building design monstrosities, then they would end up the losers because they'd never find a buyer! In other words, perhaps people ought to be trusted to make sensible decisions without heavy-handed govenment regulation.............
  11. Just yesterday Gordon Bean was busy telling assorted journos that he and his NuLab pals had built a stable economy that remains stable and will continue so while NuLab are in government. I tend to agree that the economy is stable - full of straw and horse-shit.
  12. Thanks for taking the time to explain - I'm getting a glimmer of light. To draw an analogy with something I DO understand a little better, would it be a bit like trading early surrender life insurance policies? Except that the risk factor is more quantifiable since death is a certainty whereas bank default is not, and therefore the potential to underestimate the risk of default is greater.
  13. Just been reading that - that's my problem. I'm just not getting it - too abstract for my old brain. I can't understand exactly what asset is being traded when CDSs are traded. I understand the insurance part, but how can CDSs have a tradeable value, i.e. a value in their own right? It seems more like some form of betting to me. Sorry to be so thick. Perhaps I ought to leave this kind of stuff alone - I'm obvioulsy too thick to work it out! It's so frustrating, though.
  14. Finding it difficult to get my head around these default swaps. To use an analogy: is it like person A with a mortgage having insurance against unemployment, then person B packages the insurance along with a few hundred others, which turns it into an asset with an income stream (percentage of premiums, presumably) which in turn is repackaged by person C which creates an asset on the back of an asset on the back of an insurance policy against Person A's continued employment which is a liability, is it not? Now, when person A loses his job and makes a claim on his insurance, who is liable to make his mortgage repayments? The original insurer, or the repackagers of the liability who turned it into a tradeable asset? Or have I completely misunderstood CDSs?
  15. Interesting post. So the central banks are damned if they intervene and damned if they don't. Banks are screaming from the sidelines: do something, do something, yet when they do, the very same banks take it as evidence that the central banks know something they don't and thus what was meant to relieve the situation, exacerbates it, so the bankers scream even louder: do something! What a vicious feedback loop. Perhaps all that the Central banks CAN do now is sit and watch as the system implodes.
  16. Just look at what governments and central bankers are getting away with at the moment, not to mention CPI fiction. I really do believe that the sweep-under-the-carpet job that is already being practised on the unaware will lead to a global currency to replace a meltdown of current currencies, and it will be hailed as an innovation that will have 99% of the global population gagging for it. That it will mean that you and I become enslaved via a microchip that records our every transaction ( and if you refuse you will not be able to buy or sell) is just par for the course. That's the way we are heading......imo. Wish I could find it, but about 12 years ago I wrote an essay about the dangers of a cashless society......while Joe Bloggs earns his weekly wage in pound notes there is some protection, even if his pound notes are fiat, against enslavement, but the truly cashless society which I believe we are heading for, is an Orwellian nighhtmare.
  17. I just wonder how much taxpayer's money was paid to this bunch to state the bleeding obvious?
  18. My honest opinion is that the masses will largely be unaware of the global currency meltdowm by the time a global solution is imposed. They will sense a little discomfort but that's about it. Very few will recognise the resultant mark of the beast (whatever that might be, i.e. a totally cashless society and instead individual microchip implants) without which no-one can buy or sell - and it will take such a Biblically anticipated solution to get the global economy out of its current mess. "A bushel of wheat for a day's wages...."
  19. Any of you familiar with Salterns? My daughter's BF has a couple of flats there - one lived in, one let. Been advising him for three years to get rid but I fear I cried wolf too early.
  20. Thanks. I need to do more research on Ludwig...
  21. I posted the following on another thread as an incidental, but I'd really like some further input if anyone can offer. As I understand it, governments cannot continue indefinitely to inflate the money supply without risking debasing the currency which in turn leads to a flight of capital which requires more printing press activity to plug the hole, which leads to further depreciation of the currency which requires more funny money etc etc and before you know it you are in an inflationary spiral a la Germany in 1923.
  22. As I understand it, governments cannot continue indefinitely to inflate the money supply without risking debasing the currency which in turn leads to a flight of capital which requires more printing press activity to plug the hole, which leads to further depreciation of the currency which requires more funny money etc etc and before you know it you are in an inflationary spiral a la Germany in 1923.
  23. £3950 pcm? Are you sure it's not in Barking......?
  24. Only half-listening to this story on Radio Five, but I heard a figure of 100 billion bandied around as the extent of these guarantees, but no-one need be concerned because it is all secured against property!
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