Doom Lord

Got another 9 months to go on the lease so plenty of time for these cuts to work through the system and see what happens, but I will be keeping a close eye it. I guess the battle is really kicking off now.

If I can get a house reduced by over 20% from the peak and a cheap fixed mortgage then I will have to seriously think about buying when my rental agreement runs out as it's costing me close to £18,000 a year in rent. There thats as bullish as I can get.

I think you could be right. Looks like Gordon has learnt a lesson from the sale of the countries gold after all.

The way I see it is that sellers are in denial and no houses are selling as a result of their unwilingness to reduce prices. The press, the VI's and home owners have all been baying for a rate cut and now they have got the mother of all cuts. Once it becomes apparent that this has not worked and there is nowhere left to go then sellers will realise that it's game over and thats when the bloodbath will start for real. If the rate cut saves jobs and business in the process then thats an added bonus imo. I may not be getting the best rate on my deposit but when you add in savings from the reduction in the price of a house and interest not paid over the 25 years I will still be quids in.

Tax Land.

Teach yourself how to trade and how to program computer software (maybe a course in programming). There are plenty of brokers that give you demo accounts and access to their API's for free. That way you can develop a system yourself and it will cost you nothing until you go live. Everything you need to know is already in the public domain. I would recomend Forex trading for a number of reasons the main two being: High leverage and personally I dont want to own a share in a business I just want to make money, so it makes sense to just swap one form of money for another. I would start your search for information by typing in "Trend Trading" into Google. Even if it took you 10 years to develop a winning system you will still be only 34.

I'm in the same position as you. There are some real bargins in the 2nd car market. I have been looking at cars that sold for £40,000 new\£80,000 mew now going for £8000.

As Requested....... BrownTurn.bmp BrownTurn.bmp

Always read the terms and conditions, not all mortgages are the same If you want to save money look into the ofset\current account mortgages

Most of us are only interested in the current business cycle and will be using these various measures as indicators as to when the right right time to buy will be.

War is highly inflationary.

You still have full access to you money in the virgin one account for a rainy day. I would also think that they don't have to much of problem with sub prime because most people that would use this product are heavily overpaying their mortgages.

OK very rough sums: Repaymenyt Mortgage on 65K 25 years @ 6.25% (HSBC) Monthly: 433 Total paid back: 129900 Savings 35K @ 5% 25 years: Interest: 83522 interest after Tax (40%): £50113 + £35000= £85113 Total cost: 129900 - 85113 = £44787 Repayment Virgin one mortgage on 30k for 25 years @ 6.7% Monthly: 208 Total: 62400 However you take that £208 saved interest @ 6.7% for 25 years tax free= £161,365.37 Total COst £62400 - 161,365 = -£98965 Obviously you cant have a minus number and all this shows it that your mortgage gets paid off sooner than 25 years and that you then have to reinvest you money in other tax free savings. This doesn't take into account both salaries offsetting the account or any other cash you use to offsett. Yes you could be more "Clever" with your 30K but I am trying to do a "Like for Like" with this example. Have I Missed something?

Incorrect, you Actually have 30K of debt. On top of that you are also paying tax on this debt and paying considerably more interest than you should be. Get an offset mortgage. I will also add the Sainsburys have been doing a credit card where you can buy your shopping without paying any interest on the balance for a year. Combine these two together and you will make a tidy saving.

Sorry, I have no idea what your talking about?

Before I came to HPC I was: Living with my partner and baby son in a small 2 bedroom flat, 100%+ mortgage with Northern rock working in IT support. Partner also owned a flat that was BTL. We decided that we needed to move into a bigger house and whilst looking on the web at property web sites found this site and thats when things started to change. (2004) Went freelance to earn more money. Sold the two flats and banked the cash. Brought an old house that needed a lot of work which I would do, to a least cushion us from a crash. Finished the work Late (2007) and the writing was on the wall so we sold that too. Now sitting on a nice STR fund, renting a townhouse in SW London. Also thanks to all the investment talk on this site I got really interested in currency trading. I taught myself VB .net and have now programmed a Forex trading system that is currently it's the final stages of testing. It's profitable but does need some more optimization, However I should be able to give up working altogether in the next year. It would be just my luck if the Forex market collapsed as well My friends and partner all thought I was a crazed nutter from 2004 - Summer 2007 but now realise that what I was saying had been right all along. In between I had another son, oh I am 34. Personally it's been quite a journey comming to HPC.

Spot on in my opinion.

Last night really made me think hard. I have a nice sum of money deposited in various banks and ISA's but last night made me think it's time to pull the lot in put it into government bonds. The reason being: If we get inflation the bonds will at least attempt to keep pace with it, a lot more than housing will. If we get deflation then even better, but the key thing is the money is safe. I don't really want to go through the FSCS trying to claim it back with all the other millions of people. Now I realise that there will be opportunities in the next couple of years for people who are williing to take a few risks to make considerable amounts of profit but thats not for me. This money is to be used to buy a house outright so that me an my family are debt free for the rest of our lives. So it's game over, end of the road and i'm walking away a winner. 100% down to this web site and the posters on it. Thanks. Now if I loose my job and I am unable to find a new one then my family and I will be moving on a temporary basis to somwhere where the cost of living is cheaper until this thing blows over. I'm thinking Thailand because I have friends and family there. I wont have to work and I will will spend the time enjoying my family and educating my children. Thats the plan

If there wasn't an interest payment then yes you could unravel that side of the money creation process I understand that. However because there is an interest payment there isn't enough money in the system to do this once you have paid the banks their due.

Your talking nonsense now. So your saying that if all the depositers in the UK went to their banks and removed all their deposits at the same time everything would be OK?

Is there enough of this physical paper and coins in existense to pay back all the debt money with interest?

I appreciate you trying to help me understand this. Yes I aggree they take a spread. To take the spread implies that this money must already exist would it not?. If it already exists how and by what means did it come into existence?

Lets say I earnt that extra one pound from the economy. Who created it and how?

Ok Let me rephrase the question: How and who created that extra £1 in our current fiat system?