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Why Politicians Are Obsessed With High House Prices?

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Quote:Mr Brown said there would also be an extension of the credit guarantee scheme and a new strategy for

Northern Rock in an effort to increase capacity in the mortgage markets

http://uk.news.yahoo.com/4/20090119/tuk-ta...ut-dba1618.html

Mr Brown and his Darlings are pouring billions in to banks to facilitate their lending; mainly for mortgage

( I can understand the point about businesses). They want high house prices. Why this obsession with house

prices? Is it not better to restrict mortgages to 3.5 times salary and allow house prices to fall to relevant levels?

This will bring in the needed FTBs and get houses to be sold. This can probably bring economy also to move again.

Or am I wrong in thinking like this?

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Because they are trying to stave of repossessions, if prices fall so far that millions are in neg equity, there is a big possibilty that hundreds of thousands of mortgaged familys will find they cannot remortgage. If they can hold prices high now it will help limit the carnage.

Hopefully when the goverment force the banks to lend it will be similer to 3.5 times earings.

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Quote:Mr Brown said there would also be an extension of the credit guarantee scheme and a new strategy for

Northern Rock in an effort to increase capacity in the mortgage markets

http://uk.news.yahoo.com/4/20090119/tuk-ta...ut-dba1618.html

Mr Brown and his Darlings are pouring billions in to banks to facilitate their lending; mainly for mortgage

( I can understand the point about businesses). They want high house prices. Why this obsession with house

prices? Is it not better to restrict mortgages to 3.5 times salary and allow house prices to fall to relevant levels?

This will bring in the needed FTBs and get houses to be sold. This can probably bring economy also to move again.

Or am I wrong in thinking like this?

I'm with you , war

But remember rising house "prices" make good headlines . Many people still believe that if they buy a house for £100,000 ,and a year later a guy/gal in a suit with a clipboard says it's "worth" £150,000 , that they have made £50,000 profit .

It is the biggest con on the genreal public of all time ,and plenty sre still gullible

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Guest Steve Cook
Quote:Mr Brown said there would also be an extension of the credit guarantee scheme and a new strategy for

Northern Rock in an effort to increase capacity in the mortgage markets

http://uk.news.yahoo.com/4/20090119/tuk-ta...ut-dba1618.html

Mr Brown and his Darlings are pouring billions in to banks to facilitate their lending; mainly for mortgage

( I can understand the point about businesses). They want high house prices. Why this obsession with house

prices? Is it not better to restrict mortgages to 3.5 times salary and allow house prices to fall to relevant levels?

This will bring in the needed FTBs and get houses to be sold. This can probably bring economy also to move again.

Or am I wrong in thinking like this?

Because fictitious wealth based on house prices is our economy.

It is all there is

Without the above, we get to find out how poor we really all are, and have been for several decades

Edited by Steve Cook

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Quote:Mr Brown said there would also be an extension of the credit guarantee scheme and a new strategy for

Northern Rock in an effort to increase capacity in the mortgage markets

http://uk.news.yahoo.com/4/20090119/tuk-ta...ut-dba1618.html

Mr Brown and his Darlings are pouring billions in to banks to facilitate their lending; mainly for mortgage

( I can understand the point about businesses). They want high house prices. Why this obsession with house

prices? Is it not better to restrict mortgages to 3.5 times salary and allow house prices to fall to relevant levels?

This will bring in the needed FTBs and get houses to be sold. This can probably bring economy also to move again.

Or am I wrong in thinking like this?

I think this is more a case of having NR enter the mortgage market again, rather than increasing the number of loans or supporting house prices.

we did hear all this stuff in Sept Oct 2007 when the US banks were really discovered to be in the doodoo... nothing came of it as all these schemes are a mathematical and banking impossibility.

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the country has nothing else to offer.

all the last 7 years of consuder spending was based on consumers borrowing.

its a one trick pony.

theres no back up infrastructure and they are POURING what little future reserves the country has into a black hole.

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Guest Steve Cook
the country has nothing else to offer.

all the last 7 years of consuder spending was based on consumers borrowing.

its a one trick pony.

theres no back up infrastructure and they are POURING what little future reserves the country has into a black hole.

exactly

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Surely, the main ereasons Godron and Darling Darling et al want to re-boost lending and borrowing into the housing market is to somehow recover their dysfunctional economy?

And their political crediblity.

Sadly neither can be recovered: they have come up against a little problem called reality.

Standing aside and thinking logically, the only way the house market could recover to its earlier levels of effective insanity, is if wages and salaries expand rapidly to allow mortgages on average of 3.5 X gross income, on the silly high capital values.

Which would cause hyperinflation.

Of course, Godron could run the Mint presses 24/7/365 to allow funding government owned banks to grant 130% LTV, 45 year mortgages with just a 2.5% deposit, however this would have precisely the same effect!

The fraility of the Godron "Miracle Economy" and the over-reliance by Thatcher on her Wunnderkind, Service Economy and Financial Services can now be seen in real terms.

Paint and corners are two words which sort of come readily to mind....................

:rolleyes:

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I'm with you , war

But remember rising house "prices" make good headlines . Many people still believe that if they buy a house for £100,000 ,and a year later a guy/gal in a suit with a clipboard says it's "worth" £150,000 , that they have made £50,000 profit .

It is the biggest con on the genreal public of all time ,and plenty sre still gullible

Because they have made 50k profit (if you sell you have an extra 50k, if you bought as a second house its an extra 50k, it is real profit)! Rising house prices shows wealth in an economy, crashing prices are due to economic problems. House prices drive the consumer side of the economy, people end up buying more things, they do DIY they tend to look after there own place and worry more about the area... Rising prices is good for the economy, falling prices is bad for the economy...

The link between the economy, the success of the government in power and rising prices in property is very very real

Edited by moosetea

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I am sure that it has absolutely NOTHING whatsoever to do with the fact that all their mates are up to their eyeballs in property.......

Alan Sugar?

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Because fictitious wealth based on house prices is our economy.

It is all there is

Without the above, we get to find out how poor we really all are, and have been for several decades

Thank you for saving me the time.

I would add, though, that 99% of people are missing the point of this affair. The problem ISN'T the lack of finance or equity reduction, it is the actual cessation of most economic activity over amny years, coupled with an explosion of sconsumption COVERED UP by the HPI.

The Emperor has no clothes, Darling & Brown are trying to tell us he has.

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Guest Steve Cook
Thank you for saving me the time.

I would add, though, that 99% of people are missing the point of this affair. The problem ISN'T the lack of finance or equity reduction, it is the actual cessation of most economic activity over amny years, coupled with an explosion of sconsumption COVERED UP by the HPI.

The Emperor has no clothes, Darling & Brown are trying to tell us he has.

This is exactly it

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I agree with other posters who are saying it is becuase high house prices is all there is.

If house prices actually do crash, I don't think the UK will survive in the current form. Not just an economic depression, but state collapse. The elites in the current order will do anything and everything to keep this game going - even if the policies only buy a year or two more, because when a new order comes most of them won't be the elites in that new order.

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Thank you for saving me the time.

I would add, though, that 99% of people are missing the point of this affair. The problem ISN'T the lack of finance or equity reduction, it is the actual cessation of most economic activity over amny years, coupled with an explosion of sconsumption COVERED UP by the HPI.

The Emperor has no clothes, Darling & Brown are trying to tell us he has.

ugh! Mr Brown Naked. thats discusting.

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I am sure that it has absolutely NOTHING whatsoever to do with the fact that all their mates are up to their eyeballs in property.......

Alan Sugar?

as is everyone else, apart from mainly us here on the forum.

look at MSE to see the average uk citizens position.

their only hope is the rest are more stupid than they are, and clearly the uk has run out of fools.

so now they are simpl STEALING our funds to fuel it, in a temporary measure to attempt to get re-elected one more time. these are desperate times, run by desperate people trying to save a desperate population with desperate measures.

that will FAIL. they are wasting the next two generations education, defence and healthcare money as well as the pensions of the current one, all to pretend that hpi is a sustainable business model for a countries wealth. its utter utter madness. its borderline traitorous.

I agree with other posters who are saying it is becuase high house prices is all there is.

If house prices actually do crash, I don't think the UK will survive in the current form. Not just an economic depression, but state collapse. The elites in the current order will do anything and everything to keep this game going - even if the policies only buy a year or two more, because when a new order comes most of them won't be the elites in that new order.

we will have to collapse like the communists did, and rebuild again a manufacturing economy based on rock solid fundamentals. this is sheer denial of the highest order and a folly that will cost up 20-30 years to recover, if we recover.

these times will be looked back on as the collapse of capitalism.

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Quote:Mr Brown said there would also be an extension of the credit guarantee scheme and a new strategy for

Northern Rock in an effort to increase capacity in the mortgage markets

http://uk.news.yahoo.com/4/20090119/tuk-ta...ut-dba1618.html

Mr Brown and his Darlings are pouring billions in to banks to facilitate their lending; mainly for mortgage

( I can understand the point about businesses). They want high house prices. Why this obsession with house

prices? Is it not better to restrict mortgages to 3.5 times salary and allow house prices to fall to relevant levels?

This will bring in the needed FTBs and get houses to be sold. This can probably bring economy also to move again.

Or am I wrong in thinking like this?

YOU ARE ABSOLUTELY BANG ON THE NAIL.

LIAR LOANS [i.E. SELF CERT AND STUPID MULTIPLES' MORTGAGES] GROSSLY INFLATED HOUSE "PRICES" -- AND THE GOVERNMENT AND PROPERTY VESTED INTERESTS WILL EAT THEIR BABIES RATHER THAN ADMIT AND FACE UP TO THE REALITY -- THESE HOUSE "PRICES" ARE COMPLETELY INSANE - THEY ARE UNSUSTAINABLE -- AND YET THEY ARE TRYING TO KEEP THE ENTIRE ROTTEN AND FRAUDULENT SYSTEM GOING -- BECAUSE THEY JUST WILL NOT FACE UP THE ABSOLUTELY OBVIOUS FACT STARING US ALL IN THE FACE: LENDING OVER 3.5 X SALARY IS FRAUD -- IT IS UNSUSTAINABLE -- IT IS UNAFFORDABLE -- IT WILL NEVER, EVER, EVER WORK --- BUT THEY WANT US TO KEEP DOING THIS ANYWAY SO THAT HOUSE "PRICES" DON'T COLLAPSE --- THEY ARE TRYING TO STOP THE TIDE COMING IN

THEY DO NOT WANT TO FACE UP TO THE FACTS

HOUSE PRICES ARE WHERE THEY ARE TODAY - I.E. THEY ARE UNSUSTAINABLE, UNAFFORDABLE -- AND THEY GOT TO WHERE THEY ARE THANKS TO MORTGAGE FRAUD, LIAR LOANS AND UTTERLY INSANE, IRRESPONSIBLE AND DISHONEST MULTIPLES OF SALARIES.

Edited by eric pebble

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as is everyone else, apart from mainly us here on the forum.

look at MSE to see the average uk citizens position.

their only hope is the rest are more stupid than they are, and clearly the uk has run out of fools.

so now they are simpl STEALING our funds to fuel it, in a temporary measure to attempt to get re-elected one more time. these are desperate times, run by desperate people trying to save a desperate population with desperate measures.

that will FAIL. they are wasting the next two generations education, defence and healthcare money as well as the pensions of the current one, all to pretend that hpi is a sustainable business model for a countries wealth. its utter utter madness. its borderline traitorous.

we will have to collapse like the communists did, and rebuild again a manufacturing economy based on rock solid fundamentals. this is sheer denial of the highest order and a folly that will cost up 20-30 years to recover, if we recover.

these times will be looked back on as the collapse of capitalism.

Does the UK need defense anymore? It's not like anyone would want the place is it :lol:

Edited by Soul Reaver

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Hopefully when the goverment force the banks to lend it will be similer to 3.5 times earings.

If the the goverment force the banks to lend to 3.5 times Brown and his gang will be stuffed because 3.5 times salary means an average of £100K lending that means another 40% crash of house prices :lol:

Surely corrupt Brown and his co don't want that do they?

Rising prices is good for the economy,

False economy!

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Quote:Mr Brown said there would also be an extension of the credit guarantee scheme and a new strategy for

Northern Rock in an effort to increase capacity in the mortgage markets

http://uk.news.yahoo.com/4/20090119/tuk-ta...ut-dba1618.html

Mr Brown and his Darlings are pouring billions in to banks to facilitate their lending; mainly for mortgage

( I can understand the point about businesses). They want high house prices. Why this obsession with house

prices? Is it not better to restrict mortgages to 3.5 times salary and allow house prices to fall to relevant levels?

This will bring in the needed FTBs and get houses to be sold. This can probably bring economy also to move again.

Or am I wrong in thinking like this?

At this point they are just desperate, anything to keep the market up before the next election.

But over the last 10 years (atleast) the game was:

Asset price inflation (stocks, houses etc) is good and desirable.

Consumer price inflation (wages) is bad and undesirable.

Its a game. And those with the most power, assets and influence made these rules for their own benefit.

Edited by Iron Condor

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Why Politicians Are Obsessed With High House Prices?

Because paying double what your parents had to pay for shelter (in real terms) is the path to wealth, according to the TV property experts ;)

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Many people still believe that if they buy a house for £100,000 ,and a year later a guy/gal in a suit with a clipboard says it's "worth" £150,000 , that they have made £50,000 profit .

It is the biggest con on the genreal public of all time ,and plenty sre still gullible

Exactly. That £150,000 would only buy the same house that you could have bought for £100,000.

Technically, if they sell the house for £150,000, they do make £50,000 profit. But the money is devalued by house price inflation.

If house prices are a significant factor in inflation (which they have been for years) then buying a house is not an investment, it is a hedge against inflation. Which you cash in before house prices crash and go deflationary.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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