Nicholas Cage

True, the FSA under the Tories set Labour up for a fall.

Low interest rates have boosted the investment appeal of buy-to-let. Agents are reporting a renewed interest in the sector, on the basis that it looks tempting to withdraw money from the bank, where savings earn next to nothing, and invest it in property (see auction report on page 7). About 75 per cent of agents reported a rental yield of 4 per cent or more in a recent survey by the Association of Residential Lettings Agents (ARLA), with the majority reporting between 4 and 5 per cent — a cut above the interest from many savings accounts. Ian Potter, operations manager at ARLA, says: “With interest rates at 1 per cent, our members are seeing investors tempted back into the buy-to-let market as rental yields offer a greater return than the banks. With the financial markets in crisis, it’s clear that bricks and mortar are a safer bet than stocks and shares.” But Nick Blamford, managing director of the independent financial advisor Informed Choice, says that investors should be cautious. “Buy-to-let should be seen as a long-term investment. Less than five years and you will probably lose equity because of a fall in house prices. And if interest rates start to rise again, you may be paying more on your mortgage while bank savings make money again.” Savers should shop around — a quick hunt on moneysupermarket.com found that short-term savers with around £50,000 could find deals with rates of up 3.5 per cent. Letting out a property could make more but that is before agency fees and maintenance costs. And what if the property sits empty? Related Links * Second homes: credit crunch casualty or money-spinner? * A ray of hope for the housing market? * Top 10 tips to improve to move Blamford said: “Rates get better the longer you leave the money where it is, whether it is property or corporate bonds, a popular choice right now. If you need fast access, your money is probably better in the bank.” Dear Ross - repeat after me: not everyone can get a mortgage, not everyone wants the responsibility of home ownership and some of us aren't in final salary pension schemes. I saved for 4 years to buy a second house to rent out - no foreign holidays, no car, no big nights out. Hardly "stealing"! Becky, Leeds, Repeat after me: houses are for living in, not for investing in. Landlords are driving up the house prices, which means families don't get a look in. And a lot of the time, they rent so students, so families can't even rent the houses the landlords steal from underneath their noses. Ross, Lancaster, UK Have your say

You do understand no savers are moving into property?

The missing figure is the % interest you pay for the 114K. Other than that you could hedge the inflation on the government debt with index linked government investments with Index-linking + 1.00% AER. So only 0.75% below your deal for zero risk. Edit: http://www.nsandi.com/products/ilsc/rates.jsp 1.67% can't see your income anywhere.

The CPI Rossi RPIX RPIY RPI are all built off the same household survey from random post codes followed by interviews. They split and combine at different stages but that explains why the index changes, film for digital for example.

There were a couple of these previously, plus another that was a porscheaea

Very apt, hope we will seem more of these trips to the edges of London.

Let's just hope everyone else has a go at QE or Gordon can convince them at the G20. So we aren't left alone as the basket case of the world.

But it's not, there is no evidence of that. The article this thread is based on quotes two estate agents. Tom Dogger, of Winkworth, the estate agency, said: “We anticipate this further rate cut will create an even greater incentive for individuals with savings to transfer their funds into bricks and mortar.” Charlie Ellingworth, of Property Vision, a firm that seeks homes for well-off buyers, reports a steady influx of new customers dissatisfied with negligible returns on savings accounts. The NS&I show massive influx of funds Yet you are claiming something which is not being reported , that people are scared into spending their money.

This is a great point, we eat fewer calories and less fat and more fruit but our lifestyles are so energy efficient that we get fat anyway. There is a downward trend in energy intake but a bigger downward trend in expenditure * Trying to run in the urban environment invovles stopping every 100 yards to cross a junction, avoiding walkers and street furniture. Plenty of people near me run on the road which means they don't have to stop. * http://statistics.defra.gov.uk/esg/publica...stats/fsiyp.pdf

So, is there any evidence of savers buying property?

It's very interesting how this crash will cover the whole of the UK instead of being as you say in the previous one South and London based. This will make unemployment that much worse with such high debts surrounding houses and unfairly damage communities just as the miners strike did. The withdrawl of income on this level as seen through HEW/MEW dying out can only spread the pain even further. The first total UK house price crash, coupled with the financial system. Truly terrifying.

So the only evidence is this ?

Just not sure what the 500Bn is. I get SLS swapped assets like mortgages for government debt which the BOE are now buying back in exchange for cash. Then at some point we (BOE/treasury/taxpayer) bought lots of shares, non voting preference shares in RBS, Hbos Lloyds whoever. Now that didn't work so we are going to insure 500Bn or their debt or half our GDP, and the banks will pay us in non voting shares of a new class. Meanwhile we give them an extra 50Bn or so split between them, so they can cover the risk of them not paying us. Buy the debt we exchanged with them, pay the insurance cost and take 90% of the loss if needed. I'm very confused and alphaville has nothing explaining it AFAIK. Needs a big flow chart

What is it, mortgages and stuff?

BT was one of my top picks, not a good choice it seems.

My move was from textiles after losing my job recently, so now looking for IT work. Steer well clear of IT Networking, there are no jobs available at the moment and it's not even worth trying. So don't because it's a waste of time .

I think BOE speeches and HPC are the same, everyone has been talking about the BOE using the wrong measure for targetting, also that deflation will take the big things like houses.

Is this behind the FSCS being moved into central government from public corporation? The massive rise in levies to build a fund capable of covering the compensation claims. Recently a city firm were bailed out by the FSCS , they gave bad advice to their customers around share dealing. Same as a ponzi scheme could raise a claim.

Minus ten points for Gryffindor

So high inflation isn't priced in?

Some good common sense sadly lacking amongst all the doom and gloomers. You would all be wise to listen carefully and not think yourself too clever or as I was taught "Generosity is giving more than you can, and pride is taking less than you need" I remember talking to an old chuffer who had a simple message, A cup o’ tea an’ a slice o’ cake and he'd talk for hours, Once while we were shifting an old safe from the bottom of a building he told me of WWII and how he used to hide behind it at night for fear of the bombs coming in, "I'll be bum-swizzled" he said, it's my old savings. We peered inside and sure enough his collection of coins was still there, but badly corroded. "I guess it just goes to show" he said " you can't put money anywhere safe for long". And he was right enough as next week Bozzy MCoo lost all his savings in RBS shares.

Yes, at least as bad if not worse. Although comparing figures is difficult. Russia is at 8.1% unemployment http://www.rgemonitor.com/us-monitor/25575...rate_in_january

60 or whatever Bloomberg forecasters gave a range, 8.1% was within the forecast so in my view with revisions and the forecast it was going to be worse than forecast, it was as expected. Edit: can't see anything moving in reaction to unemployment data.

It is within revision, within previous forecast accuracy and close enough and expected to be on the worse side of forecast.