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House Price Crash Forum


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About spotthedog

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  1. They are not government-backed, they are merely 'sponsored'. Which means nothing. The government does not have to put their debt on their balance sheet, because they are not liable if they fail. Such a failure would not affect the US credit rating if the government does nothing to help. However if the goverment decides to come to the rescue, *that* could affect the US credit rating!
  2. In England, banks are regulated by the FSA. You need a stack of capital (ie millions) and lots of officers with separation of business controls between them.
  3. If you want to own physical gold as a hedge against a total collapse of the fiat paper system, be aware that that is a very unlikely event and the risk of robbery is far greater, so don't buy more gold than you can afford to lose. Also, a gold bar is too large a unit - nobody will be able to give you change. It is worth paying the premium for coins - soverigns and a few half-soverigns are best in the UK as they are exempt from capital gains tax. For more normal value speculation without trying to hedge for the apocalypse, take a look at gold exchange traded funds (ETFs) instead, you can buy and sell using a regular trading account and you can wrap it in an ISA too.
  4. Bizarre. I guess they might mean that a valuation for mortage purposes would never support the price, but more likely there is some legal condition or existing claim that conflicts with the claim a mortgage would make against it.
  5. With the russian moves in Georgia, and Fannie Mae and RBS posting more massive losses, all timed to coincide with the opening ceremony of the Olympics, I am guessing there will be more attempts to bury bad news over the course of the event. Thought we could do with a thread to keep track of them.
  6. Yeah, it's not like there is inflation happening or anything like that. Target => Window Nuff said
  7. Money is whatever people agree to accept in payment. The important issue is how the choice is made, and how that money supply is rationed. For gold money, the answer is by choice, with rationing provided by nature. For fiat money, the answer is by coercion, to serve the interests of the elite.
  8. I disagree (sort of). It is long-term lettings that establishes a rentier class parasitic on the earnings of their tenants. For example all the rented accomodation around here has a minumum 2 months notice (in practice up to three) which means one of the main potential benefits of renting - flexibility - is denied us. By all means add security of tenure to the client side, but it is more important to increase flexibility. Only short lets (max notice to landlord of 1 week) should be treated as business for tax purposes (ie mortgage interest as a business expense). This tax advantage should be removed from longer term tenancies (such as the standard 'assured shorthold'). This would ensure the ongoing viability of the only part of the lettings market that really makes sense - when you are in town for a few weeks or months and really want flexibility. The resulting increase in labour mobility would be great for the overall economy too.
  9. It is entirely possible, provided the BoE drops interest rates to about 1% and underwrites the entire mortgage market. But then a sandwich would end up costing you more than the price of the house so maybe not a good argument for property investment anyway?
  10. Why should I care about the velocity of the housing market? I care about the underlying reason for a slowdown - if it is because of revulsion from the asset class then that is a good thing from the the point of affordability - I don't want to have to bid against people who are prepared to be reckless in their borrowing to finance an unbalanced obsession with housing
  11. This is no logical reason whatsoever to believe this. Who are these 'pundits' anyway?
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