bubbleturbo

Excellent post. As you say, in 2008, rates went from 6% to zero. House prices came down a bit and the market stalled, but then various schemes got it moving again. This time, rates were low anyway so reductions are not going to make such a difference. Also, people are so over extended with credit cards, two German cars on finance, etc, etc, they don't have much or anything in the way of contingency or rainy day funds. The wrecking ball of unemployment which is coming down the tracks in a couple of months is going to mean many overextended people are very suddenly in financial trouble. They may try and roll out various schemes for the feckless, but in the overall scheme of things it will be pissing in the wind. Expect house prices to fall and significantly.

😁😁 I would prefer they tried this with a live bear.

Stirred a pot of racial hatred? Rubbish. I am not a Boris fanboy but he has been doing his best and trying to lead through what are extremely challenging times. For what you have written, you are beneath contempt.

Ha. Nice one.

I think you should go up to 10% over asking. Lots of people will not be taking holidays now and instead will be buying houses the EA's are saying. You don't want to miss the boat. If you don't like it, you can "just rent it out, innit".

Really? Do you have any idea of the derivatives positions which are out there? Have you not noticed that the central banks one after another are attempting to stop the equity markets tanking? These are all emergency measures taking place outside of the planned schedules. Did you notice on Sunday evening the Fed cut even though they had a scheduled FOMC meeting a few days later? Ever heard of the Fed put?

Something different. We have seen over the last weeks with the actions of the Fed and ECB that the market is not buying it. Of course, preferably we would not be in this mess. The mess is entirely of the worlds central banks own making though. They have blown even bigger bubbles since 2008 and the world has not taken the medicine. Albert Einstein is widely credited with saying, “The definition of insanity is doing the same thing over and over again, but expecting different results.”

Yep......gold coming back again now.....

Yes I noticed that too. I cannot think of any explanation other that it being dumped by central banks at the same time as the announcement in a coordinated effort to try and stop gold taking off!

Exactly. These geniuses are keeping their powder dry!

FTSE positive 20 points and now falling back again. Well that was worth it.

Idiots https://www.cnbc.com/2020/03/19/bank-of-england-announces-further-rate-cut-and-launches-new-bond-buying-program.html Interest rates now down to 0.1%. Nothing to see here, move along. . . . Maybe if they print enough, the paper can absorb the virus. If not, we can all use it for toilet paper so a win win for the morons at the BOE.

I am afraid I have to strongly disagree with this statement. With the de-industrialisation of the UK over the last decades, there are very few professional jobs and careers. Many people now are self employed, many reliant on the housing "industry" plumbers, builders, etc. Many people are living hand to mouth, with large mortgages, prestige car PCP plans (because I am worth it), etc, etc. The world economy is basically grinding to a halt. We are very likely going to see another banking crisis. Even if people get a few months mortgage deferral, it is not going to change the fact than a great many people are going to see their earnings evaporate, but have a lot of debt. If the banks are feeling pain, which they will be, badly in the coming weeks, they are not big cuddly animals and many people are going to default and need cash. Expect the price of cars and big ticket items to crater. Expect many forced sellers in the housing market. Not today, not tomorrow but before the end of this year.

He clearly learnt nothing from the Feds emergency rate cut on Monday. Emergency measures tend to scare people. When people are scared, they buy less stuff. Pathetic.

I think this was well worth it. Carney is a genius (see other thread). Central Banks have gone from being Omnipotent to Impotent. All completely of their own making but the fallout from all this is going to be Depression, not recession.