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equitystasher

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Everything posted by equitystasher

  1. More like spend all that western toilet paper before it becomes worthless.
  2. I don't think you are far from the truth! The bailouts seems to get bigger and bigger. It seems madness to me that this lot want to get lending going when they should be concentrating on just stopping th banks from going under. Brown and co seem to think have enough money to prop the whole thing up. Instead thye are just throwing money down a black hole.
  3. Can someone explain to me how these banks can keep the promise of increasing lending despite such huge losses with probably alot higher losses to come. Surely bank bail out 2 will get get swallowed up by future losses as we are only just going into the deepest recession for a generation. Is the governments policy just another spin attempt to keep the population sweet as they sink many billions of tax payers money into the system to keep it afloat?
  4. The man on the street with a small pot of savings is waking upto the fact that he is getting feck all interest on his savings but is being charged much higher interest on his/her credit card and overdraft. It is not rocket science to see what most people will be do. Because the rate of return is so low now people will be prepared to try and look for other investments such as premuim bonds I hope savers continue to take their money out of banks as it is obvious that they do not need us. I am waiting to take mine out once the fixes end and am preparing to take the girlfriends out aswell.
  5. I am also waiting also for the next issue. I currently hold 3,5 year 1.35% and the current 3,5 year 1% issues. [email protected](government) know that inflation risk is high once the BofE presses roll so would not be surprised if they were not releasing new issues or ones on more attractive terms. Investors are starting to worry about inflation and are getting poor returns from banks which are shaky. I can't see them attracting funds away from the banks which they hold a stake and interest in. If it was me I would buy the current issue and rather than wait for a better issue. But thats just the way I see it.
  6. Which is why the goverment plans to rescue the economy and housing market are destined to fail. Gordorn Brown and cronies such as Crosby only know how do things one way. The ponzi old world way. To get out of this mess takes leadership in a different direction which I fear we will not recieve until we have a change of government. I really hope that the media join up the dots and the general public are made aware of what has gone on.
  7. Resist......dont give in.I feel like sticking two fingers up to the lot of them. I am deleberatley spending less and sticking more in index linked bonds. Our T.V went on the blink so looked in the Free ads. Picked up a immaculate 32 inch CRT Sony Trinitron Widescreen T.V with remote,original instructions no more than 3 years old for £50! Picture is fantastic just bloody heavy if you want to move it. The money I have saved will help kick Brown and co in the bolloxs.
  8. I think his comments are enough to have him sectioned under the mental health act. He is a liability to himself and more importantly to us.
  9. Totally agree with this. The question is when? We saw how quickly inflation turned to deflation as the all that money went to safety so my guess is that it could turn as quickly back the other way. Does anyone else agree on this and has a idea of time scales?
  10. Its fantastic news...........for some of us. The Land Registry is accurate for private sales but very laggy. Sales for November will be made up of sales agreed around three months earlier so maybe we will see a few more 4% drops!!! 4.3% of the average house with 25 years interest is alot of money that can be spent on yourself and family.
  11. http://www.independent.co.uk/news/uk/polit...uk-1518588.html Wait 12 months at least?
  12. Have you not considered renting for 12 months? House prices will not increase over the next 12 months and with unemployment rolling much higher you will be in a much stronger position to negotiate the price in 12 months time. There is still alot of vendors holding onto hope. If you pay 20% off you are not getting it at what future value is but what CURRENT value is. That is the way the market works. The few buyers that are around determine the current value. In my view if you buy now you might aswell throw the money out of the window. The readjustment of prices will take time but we need to see unemployment peak before we see prices stablise and that is a way off yet? Yes you are buying a home for the future but look at the benefits to your families future by waiting just a short relative time. Playing a waiting game will result in a much lower mortgage or much better house. When there is blood on the streets and everyone is saying don't buy property that is the time to step up to buy. I understand that people don't want to wait that long but at least wait for the biggest falls to pass first! There is plenty of rental property out there which is now cheaper. Sign up for 12 months to give yourself some security and some bargaing room with the land lord and save your house fund. Remember that it is now abuyers market and will be for the forseeable future.This hasnt been around for 12 years so it takes time for peoples mentality to change.
  13. People need to be a bit more patient. The amount of drops in [email protected] are the fastest on record. I know we would all want it to bottom in the next year so we can buy but that simply is not going to happen.People selling still have not come round to the new order but they will. Looking at past recessions it takes on average 6 years for prices to bottom and we are at the START of the worst recession post war. The fastest drops come in the first 3 years so I would say to people to wait at least another 12-18 months before even considering making a offer or untill unemployment has peaked. If you buy earlier you will be paying back with interest over the term of mortgage a large amount of money which can be easily avoided by just sitting tight.Sit down and work out out with average interest rates what you will save yourself.Think how you can use that extra capital. We are at a start of a large rebalancing which the government cannot avoid.Everyday items will get more expensive and will remain expensive and assets will get cheaper.
  14. We need to let the economy rebalance which means I am afraid letting companies lay of staff and lean out to demand. This is just drawing the pain out Japanese style and makes for an ineffcient economy.
  15. I have 45% of my STR in inflation linked bonds with [email protected] The rest is spread around fixed high interest accounts which are coming to a end next year and the rest is in Tesco which is currentl earning 5.1%. The way I see it is that you should hedge against inflation in some way with at least half of your fund. Looking at the current situation I will be buying more Index linked bonds once they become available.
  16. Common sense says they should.....................oh dear :angry:
  17. This would be the best avenue to persue as a government. To run down by western standards massive reserves. 75% capital ratios!Have I understood thjat correctly? What do we run here? Think its something like 6-9%. It looks to me that the Chinese are willing to run these ratios down to stimulate the economy. No more cheap Chinese money for us. Inflation here we come!
  18. This is a very interesting development which we should all keep a close eye on. I should imagine that alot of these loans are for business and internal projects rather than loans to private indviduals as the Chinese people have a saving mentality. The Chinese government know that they can no longer rely on the indebted West to purchase their exports with Chinese money and the slack has to be taken up. This massive increase in lending/spending could cause the indebted west to see a increase in inflation if the Chinese are successful in inflating their economy with their large reserves. This will also cause problems with the West seeking funds as the Chinese turn their investment inward.
  19. There are normally two issues 3 and 5 year. You can invest £15,000 per issue per person. They are issued at the will of the Treasury and withdrawn whenever they please. The prevoius issue to the one currently running only offered about .15% above RPI. These were withdrawn quickly and more attractive ones issued. I Imagine because not many people took them up. Also remember another benefit with them is that unlike the stock market,metals or foreign currency you are guaranteed to at least get your money back. If we do get severe deflation your profits are locked in annually. I should imagine that if the [email protected] see inflation on the horizon then they could offer less attractive terms on new issues or could completley withdraw them so bear that in mind. I think if you load up on these you proabaly won't go far wrong. You might not get amazing returns but they will go quite far I am sure in insulating your savings against inflation and the threat or a possible bank collapse. I personally think we will end up like Iceland and have inflation without the corresponding wage inflation.
  20. The other agents will see this and follow suit. They know who is successful selling and who is'nt. They will all capitulate through 2009
  21. Oh except houses and anything bought on credit aswell of course.
  22. This is why we might end up with the worse of both worlds like Iceland. Inflation in everything except wages. They need to learn that there is no free lunch. We owe and now it is time to pay back.
  23. Brown does not care. Along as he is in number 10 after the next election. He won't go hungry.
  24. You are completely right and it is that simple. But unfortuantly the solution to cure the ills is very very painful and for the policy makers to make to right decision for all our own good would be deeply unpopular and it would take someone with balls to make those kind of decisions. It would also require far reaching moves to stop this again but that would mean the rich elite becoming poorer.
  25. Good Thread Crash, I have been pondering this very subject since 2007 since I sold my flat. I want to protect my house fund and if possible grow it. Inflation is the biggest threat to the conservative saver. The best way I feel is [email protected] inflation bonds. I know people do not have faith in the headline figures but if you try and look at the headline figures overall I don't think they are that far off. Look at the huge devaltionary effect that has been happening recently. The headline figure has dropped but not as much as I expected bearing In mind the price falls on the high street,houses,cars etc. I know that the money in them has yielded better returns than the money I have moved around chasing rates and money in fixed interest accounts. I currently hold half my fund in index linked bonds.You don't earn interest in the first year but as you say you will not be buying for at least a year and then you can take them out on a monthley basis and still earn interest upto that period. If there are more issues then I will be buying more. I think that you will find that these bonds will out perform money in the bank and the stock market in the medium term. We will see inflation alot sooner than people think but if they QE and you want to stay in sterling then these will be the best low risk inflation proof haven. The stock market is riskier but with that risk the potential gains are higher. An in such you could gain alot but lose alot more.
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