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phil7

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About phil7

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  1. Interesting article that raises doubts over the official line defending QE as much needed stimulus for our ailing economy. Can it be that QE is really only intended to correct our financial institutions' balance sheet exposure ... This lets me to believe that the government is sticking to Plan A because it actually is working just as it was meant to be. It’s main objective is to recapitalize the banking sector. The question then is; how far away are our banks from recapitalizing their balance sheets, and what will happen then? http://www.publications.parliament.uk/pa/cm201213/cmselect/cmtre
  2. Monetary policy in the UK is stuck in a catch 22. QE is not necessarily bad - it is misdirected and gravitates around property. The solution needs to be more sophisticated, perhaps even radical, a debt jubilee. Here is how a debt jubilee could work: Give every legal person in the UK a choice: Either half residential UK mortgage debt Or double UK cash savings deposits Funding for this one-time only debt jubilee comes from new money issued by the BoE (QE) underwritten not by government/public debt but by bank/corporate debt to be repaid through a time bound levy on financial institutions i
  3. It beggars belief that this country supports all those crazy property buyers, who chose to participate in a ponzi scheme of enormous proportions, while punishing the prudent and innocent (those who did not partake and decided to rent, and of course the next generation). Fact is, the price of our homes needs to come down across the line. The high cost of living harms our economy. In some areas, such as London, buying/renting was expensive 10 years ago. Now it is a joke. It is one thing to support all those owner occupiers who got carried away when they purchased their home. Ok, give them acce
  4. Given the vast amounts of funding that went into the support of the economy since the beginning of the debt crisis, is there a case to argue that the government has unfairly discriminated parts of the population, namely those who did not partake in the secured debt madness? I am thinking of all those who have been hit by artificially low interest rates on savings, or those who were forced into renting to await a much needed cooling of house prices while their landlords benefited from low mortgage rates and sustained house prices. The low interest rates have clearly supported the housing mar
  5. Does anyone know how many buy-to-lets have been financed by people remortgaging their family homes to the max in a bid to raise capital to invest in properties? Isn't the strong property demand over the last years down to the buy-to-let market compensating for the lack of 1st time buyers? If those buy-to-let investors have bought on the expectation that rents cover the cost of their 2nd mortgages, and now realize that this isn't sustainable, then the big question would be can they cover the monthly delta with their disposable incomes? If enough buy-to-let investors can't then this will me
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