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House Price Crash Forum

aa3.1

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About aa3.1

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  1. In Britain the printing has been strong enough that the country is still in inflation. But look at America as an example. Clearly there has been deflation over these last 5 years. By far peoples biggest cost is housing, and not only has the price of houses fell substantially, but the interest rates have meant a 50% fall in payments.
  2. This is where demand side management comes in. Should the poor masses have the lights on at night with the curtains closed.. they should be resting for the next day of work, not wasting energy and causing rising carbon emissions.
  3. You guys are highlighting a big reason why people buy property and rental houses. At least they own it, it goes up with inflation.. and they don't have to put their faith in the integrity and intelligence of the city boys for their retirement.
  4. I remember when Gordon Brown increased the top marginal rate from 45% to 50%. But it was a head smacking moment for Labour when they realized that 90% of the people in Britain in that bracket, work for the government. Everyone from senior change agents, to productivity consultants, to regional directors of communications strategy were hit.
  5. It is the crazy world Labour and friends like the Tories have created.. where everyone is a very important person with a prestigious title. It is like a friend of mine's sister is a 'vice president at HSBC'.. at first I said no way that is incredible. Then I found out they have dozens of vice presidents just in one city. She sells mutual funds, and is very successful at selling them in fairness to her.
  6. Don't worry 3 seconds after a bank fails the politicians will blink and bail out their buddies. But they are talking big now when it is all talk.
  7. As Bloo Loo predicted at the start of austerity several years ago, when the Tories announced salary freezes to get a control on spending(in 2009).. they would be unable to enforce it on the ministries. First off each level people are on has many tiers that they can move up. So even with a freeze on the tier pay rates, people move up each year. Secondly the ministries make positions higher level than before. For example what once was the lowest level file room clerk, become file room manager, and then regional director of information management. Same job - different level. Throughout the
  8. Money looks so simple to understand when you first learn about it. But the more you learn, the deeper the rabbit hole goes. Look at how on this forum, using common sense it seems to a bright young person the goal is to save your money, take responsible levels of debt, and pay down that debt as fast as you can. Yet that strategy fails miserably time and again.
  9. I see your points about venture capital, but I don't want to say without security. Like say they were funding a wood cutting enterprise, everything from the timber license, to the land title, to the equipment, mills, roads, ships is going to be secured in case of default. Even for Columbus the investor paid for 3 ships with his loans, but the ships became the collateral. The problem with the investor model is it only works for small stuff. Like we see venture capital funding several million investments in apps. The growth of Britain's colonial empire was financed by fractional reserve ban
  10. Ten years ago I worked in banking, and one reason I was sickened was their risk aversion. If it wasn't a piece of real estate securing the loan they were not interested. I argued in futility that throughout history banking has been built on commercial loans - the riskier the better. Even Christopher Columbus had a banker backing his expedition. This risk aversion by all the banks, leads to a systemic risk. Which when the systemic risk eventually blows up the bankers get criticized for taking too much risk. The reason for the need of risk taking, is exactly what you say, it is the reaso
  11. We have seen the Euro authorities attempt to disprove Keynes by going for austerity in the midst of a credit deflation.
  12. The leaders in China cannot cling to ideology when it stops working, because a dictatorship ironically must answer to its people. When the world economy got hit so hard in late 2008, the Chinese leaders moved with incredible speed to find real jobs for the 40 million people who had lost their jobs as their export model no longer worked. Dictators like Mubarrak and Ghaddafi who failed to find jobs for their people, are dead or in prison now. If some Chinese are getting super rich and investing in capital plant, creating jobs, taxes and opportunity in China, then it is promoted. If wealth is
  13. Destroying the formation of stable families and the conception of the next generation.. is a small price to pay to keep house prices high.
  14. The responsibility is a tell-tale sign. Obviously if an auto or steel company is failing, responsibility must lie at the top. But today we blame the bottom, the workers for the failures. When I worked in banking there was a unified code among the managers to never blame each other for any failure. Targets were missed, because staff were not properly cross-selling products to customers. Large losses on loans, were because frontline staff did not perform proper due-diligence. Managers who consistently missed targets.. were promoted - because after all it was not their fault. From the
  15. It is pretty obvious that the managers have seized control of the government. In the days of strong leaders like Atlee or Churchill, when orders were given, the bureaucrats largely carried out those orders(sure they were also trying to empire build but it was risky). Today when the modern political leaders give the bureaucracy orders, the managers just laugh in their face. The corporations are the same. The widely held public corporation model has failed, because no shareholder had enough power to control the managers. So today even the boards of directors have managers from other corpo
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