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House Price Crash Forum

caparn

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About caparn

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  1. I would certainly like to see the prices including repossessed houses. If I was in the market for a house I would consider repossessions just as much as normal sales so this should be included in the index. The only reason I can see to exclude these prices is to protect house prices by not revealing the true story.
  2. You can't have inflation of essentials like food and electricity without wage inflation and expect other items dictated by demand alone to keep their price. Hence house prices are falling. And when people see the price falling they don't seem such a good investment so people stop buying them as investments. The financial markets is riddled with positive feedback that causes boom and bust.
  3. I wish people would stop knocking QE. It's most peoples hope that the houses they purchased will go up in value and that they can afford to pay the mortgage. I have a massive mortgage, obtained through a liar loan and far more than the banks should have let me borrow but as I have a job and the interest is less than 1% on it it is easily affordable in fact I've never felt like I've had more money. If interest rates went up to 5% I would find it really difficult to pay my mortgage, it would be very close to my take home pay and the house might be repossessed. As it is the repayments are easy with record low interest rates and as money devaluing so does the value of my debt. In my eyes QE is certainly the best policy the BOE could have thought of.
  4. Well as Stephanie Flanders said when she was in Japan, if this is QE not working then bring it on. They have a very high standard of living there. QE is the only hope I have that my massive liar loan mortgage will not go into negative equity.
  5. Yes, the average Chinese person will want to save their money as they have to pay for their own healthcare out of a very meagre wages. But there are over 1 million millionaires in China who do have plenty of spending money
  6. Poverty and poverty line are two completely different things. Child poverty is defined as a household income of less than 60% of median income. Listen to this Radio 4 - More or Less - 08/05/2011 from about 0:13:20 it gives quite a good explanation. It is in fact more of a measure of income inequality than anything else.
  7. Of course the governement can keep house prices at the current level just by increasing the money supply as necessary. That's not to say that house values won't crash, the important figure to look at is house prices relative to inflation. House values are currently plummeting even though the price is remaining the same. The value of your money in the bank is also plummeting at the same rate due to the BOE policies of increasing the money supply through QE. monetary inflation
  8. Yes, It's simple, historic charts of money creation vs inflation prove that there is a direct link. But most economists refuse to admit that the only cause of long term inflation is printing money. monetary inflation What's going to happen when the 3 year's is up? They are going to have to make another cheap loan offer, that's for sure.
  9. I vote stay the same (or near enough) the BoE will print as much money has they have to with QE measures or similar to increase the monetary base to create inflation to keep prices at their current level. Of course we may experience 6% or more inflation which really means house prices will decrease by 6% if their prices stay the same. The real thing to watch is how pay rises do/do-not keep up with inflation. The economy is contracting so it is doubtful that they will match inflation. Monetary Inflation
  10. The prices based on a 2000 price are often unreliable. Different areas and different house styles will have risen by different amounts. The best thing to do is to find recent sold prices of similar houses nearby.
  11. Is this about the regulation where they actually will check what you earn before they lend you the money? I really want to have a laugh and try to see people find any problems with that regulation.
  12. The difference is the UK can print money to buy government debt. The BoE can print unlimited amounts. So the UK never needs to get in any debt problem. If you are in the eurozone you can't do that as you'd have to go to the ECB to beg for money.
  13. Anywhere people get the opportunity to vote for their own salary you will see pay rocket. Just look at what board members and CEO choose to pay themselves. But let's face it if we could choose our own salary wouldn't we all think we deserve a rather large pay rise for ourselves? It's human nature.
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