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hpc_uk08

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About hpc_uk08

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  1. The US bond fund PIMCO has warned that Britain risks a vicious circle of rising debt costs as global investors demand a penalty fee on gilts to protect against inflation. Bill Gross, the fund's chief and emminence grise of bond vigilantes, said the UK was on its list of "must avoid" countries along with Greece and others in eurozone's Club Med (Paris: FR0000121568 - news) . The flood of British debt is likely to "lead to inflationary conditions and a depreciating currency", lowering the return on bonds. "If that view becomes consensus, then at some point the UK may fail to attain escape velocity from its debt trap," he wrote in his April monthly note. Mr Gross said the UK is not yet in crisis but gilts are sitting on a "bed of nitroglycerine" and must be handled delicately. Spreads on 10-year gilts have crept up to 14 basis points above those of Spain, itself in some difficulty. Professor Carmen Reinhart, an expert on sovereign defaults at Maryland University and author of This Time is Different: Eight Centuries of Financial Folly , said Britain's trump card is a debt maturity of over fourteen years, much higher than the US or the big eurozone states. This greatly reduces roll-over risk or the danger of a "sudden death" crisis in the event of a shock. "What we found in our research is that countries nearing default start to rely on ever shorter debt maturities and issue more bonds in foreign currencies. The UK has done neither," she said. "Britain may need a scare to force the politicians to act, just like the Canadians in the early 1990s when they started to trade like an emerging market. The lesson in these cases is that the sooner it happens the better. The risk for America is that their status as holder of the world's reserve currency will let them delay," she said. However, there are risks that Britain will have trouble finding creditors to finance a deficit of 12pc of GDP now that the Bank of England has halted quantitative easing. The Bank has soaked up £200bn of gilts, more than the Treasury's total debt issuance over the last year. Link: http://uk.finance.yahoo.com/news/pimco-fears-uk-debt-trap-tele-604390495b1a.html?x=0
  2. Down 2.83% 220p now price change % 220.00 6.40 2.83
  3. Because some bad company news from US. http://uk.biz.yahoo.com/090811/214/ip4nq.html
  4. The Link http://www.bankofengland.co.uk/publication...ws/2009/063.htm I am going to buy a home this month!
  5. I was exciting about this. Let me think house price rising is over by Q4 2009.
  6. BBC is quite bearish about Nationwide and Halifax house price rising. The link. http://newsvote.bbc.co.uk/1/hi/business/8181945.stm But if prices are going up, then they are going up. Surely there can be no doubt about it? Not quite, says Ed Stansfield of the economic consultancy Capital Economics. "I think it is probably a short-term phenomenon. Most of the indices are stabilising or falling at a more modest rate than before," he says. "It is not a transformation of the underlying picture. "The bigger picture is that the underlying economic backdrop and the lull in the mortgage market are not conducive to a recovery," Mr Stansfield adds. But even he has toned down his earlier prediction of a further 20% price fall this year. "That is most unlikely now. All indices have shown a moderation in the decline. I think something like a 10% fall is now more realistic." All that is about to change, according to chartered financial planner Jonathan Davis, a long-term critic of the housing market bubble. He says the recent pick up in prices has been "totally illusory, transient, temporary" and reckons that the number of properties for sale is about to explode. "The impetus there was in the first half of the year is over," he says. "The number of properties on the market is rising rapidly and buy-to-letters are in a dreadful state," he adds.
  7. Natwest Esaver rate is variable and is NOT a Bond.
  8. Yahoo news http://uk.biz.yahoo.com/30112008/323/brita...ro-barroso.html Current Euro interest is 3.25 %. Pound is 3.00%. Is this also mean the disappearing of Bank of England?
  9. OK. I know not many people like Nationwide. But given the choices: NatWest and Nationwide. Who will you choice?
  10. I agreed with that. I just opened a Nationwide current and am going to spread some of money into. They offer e-bond 6.5%.
  11. He is a crazy guy. Why he believe low (base) interest rate will work. Yesterday, I have chatted with a worker in a invest bank. She believed that interest rate will not be cut this month because of high inflation. Why public always believe low interest rate is a good thing .
  12. Where are you? I am in Guildford. There is the same power-cut lasting for one hour. Is this is a national thing? I think we are in serious energy shortage.
  13. Hi, newbee here. I has been rent for more than five year partly due to the unsecure employment. Currently, I am renting a two bedroom here in Surrey area for a year. This house is valued around 280K. I noticed that rent in my area has increased around 10% during last six month by watching rightmove. Although we have not been asked to pay more for the rent, we have to prepare what if. What kind of strategy we can use to negotiate the rent?
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