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the end is a bit nigher

2 Questions Bulls Can't Answer

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It doesn't matter how many times you ask, they just can't give a decent answer.

1) What is DEMAND?

2) Where is the £200bn funding gap required to get house prices back to 2007 levels going to come from?

Now to be fair, L2M had a go at Qu.1 a couple of weeks back. Yes, he was completely wrong, but at least he tried, but ask Sibley etc. and you get nothing.

Come one Bulls, we won't laugh at you.

Much.

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It doesn't matter how many times you ask, they just can't give a decent answer.

1) What is DEMAND?

2) Where is the £200bn funding gap required to get house prices back to 2007 levels going to come from?

Now to be fair, L2M had a go at Qu.1 a couple of weeks back. Yes, he was completely wrong, but at least he tried, but ask Sibley etc. and you get nothing.

Come one Bulls, we won't laugh at you.

Much.

1. Speculation.

2. PRINTY, PRINTY to quote Injin.

This is my worry for you guys, QE has never been tried before. I seriously consider this a risk.

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1. Speculation.

2. PRINTY, PRINTY to quote Injin.

This is my worry for you guys, QE has never been tried before. I seriously consider this a risk.

1. Well, I hoped for more a proper definition, but at least you replied!

2. Agreed, this is going to lead to massive inflation, but will it lead to a return to 2007 prices? Not while there are so many people losing their jobs and getting zero pay rises. We just all get worse off.

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1. Speculation.

2. PRINTY, PRINTY to quote Injin.

This is my worry for you guys, QE has never been tried before. I seriously consider this a risk.

Mugabe is having a pretty good practice run for us.

At least the Zimbabwean govt had the decency not to come up with a BS name for printing.

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Well, apart from Mr. P., no bull replies. Funny that.

Mr P = NOT A BULL.

It's meant to be silly.

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Your profile shows you are a bull??

Yes it does.

But most on this site know me as an uber-bear.

Bearish as a great big bear's bare ar$e!

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The question I always ask but never get answered is "why would it be good if prices were to go up?"

It would not be good for the majority of us...it would only be good for those who have something, and want even more without paying for it, in other words...they love the idea of making money for nothing. ;)

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The question I always ask but never get answered is "why would it be good if prices were to go up?"

The rich get richer....

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The question I always ask but never get answered is "why would it be good if prices were to go up?"

Never ever understood that one either, Harry.

Neither did the Germans when Brown was over there lecturing them about prudence. "Ull ze invlation iss badd, ya!"

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It doesn't matter how many times you ask, they just can't give a decent answer.

1) What is DEMAND?

2) Where is the £200bn funding gap required to get house prices back to 2007 levels going to come from?

Now to be fair, L2M had a go at Qu.1 a couple of weeks back. Yes, he was completely wrong, but at least he tried, but ask Sibley etc. and you get nothing.

Come one Bulls, we won't laugh at you.

Much.

1. Is the price that someone is prepared to pay...over priced = no demand.

2. Prices in real terms will not go back to 2007 levels any time soon...if ever.

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1. Speculation.

2. PRINTY, PRINTY to quote Injin.

This is my worry for you guys, QE has never been tried before. I seriously consider this a risk.

Printy Printy seems to be upsetting quite a few of the West's creditors at the moment, short term it may well provide support but medium to long term it could have dire consequences (not only financial) .... IMHO of course.

Printy Printy = protectionism in the extreme.

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The question I always ask but never get answered is "why would it be good if prices were to go up?"

That's because you are not sitting with four similarly minded 'friends' on the 8'x6' patio on a bank holiday Monday afternoon, sluicing your mouth with cheap rose to get rid of the taste of toasted (but uncooked) value beefburgers, wondering whether your sales job will still be there by the end of the week; and hoping to hell that somebody feels that the wood-framed eyesore that you borrowed to the hilt to buy for nigh on 300K really has performed as promised and is now worth 400K. Otherwise you would have to pay for the cars already bought and holidays already taken out of your 23K salary - if that lasts past Friday. Friend Mandy's announced pregnancy hasn't helped because you know that this evening's post friends' departure conversation is going to be about 'another one' and the missus can't wait to stop working part-time at the estate agency.

p-o-p

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That's because you are not sitting with four similarly minded 'friends' on the 8'x6' patio on a bank holiday Monday afternoon, sluicing your mouth with cheap rose to get rid of the taste of toasted (but uncooked) value beefburgers, wondering whether your sales job will still be there by the end of the week; and hoping to hell that somebody feels that the wood-framed eyesore that you borrowed to the hilt to buy for nigh on 300K really has performed as promised and is now worth 400K. Otherwise you would have to pay for the cars already bought and holidays already taken out of your 23K salary - if that lasts past Friday. Friend Mandy's announced pregnancy hasn't helped because you know that this evening's post friends' departure conversation is going to be about 'another one' and the missus can't wait to stop working part-time at the estate agency.

p-o-p

Brutal, but it does hammer home the reality of Blighty.

Fear not, back to normal soon.

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The problem with the answer of "printy printy" to the £200bn shortfall a year due to the RMBS market closing is can the banks print enough to give A LOT MORE to the banks and building societies who feel they cannot afford to lend the money they have already been given? :

The Bank of England is concerned that the UK's banking system is heading for a third wave of crisis that could snuff out fragile signs of recovery in the economy.........

......Continued weakness at these banks may prevent the increase in lending that ministers are desperate to see, and dash hopes of a pre-election recovery for Labour.

The Bank of England is also worried that continued stresses in the global financial system will suck money out of the UK as cash-starved international banks bring money back home. Foreign banks are thought to be withdrawing funds from Britain once loans expire, rather than roll them over.....

The Government must consider pumping more cash into struggling British banks and conceivably nationalise more of them, or consign itself to years of insipid growth, the Bank of England Governor has warned

Mervyn King said although banks' survival had been assured by recent bail-outs, they would not start lending freely unless more capital was pumped into their balance sheets.

Mr King said: "There is a big difference in practice between the levels of capital banks need to be stabilised... and those required to persuade banks to exhibit normal levels of risk-aversion. How big that gap is is impossible to say... but it looks as if it will be quite big. If the banks are going to continue as private sector entities they will naturally behave in a risk-averse way for a while... [The state] could put in more public sector capital but that has ramifications for the Governments' shareholdings in banks."

And now of course the FSA have said the government must bail out the building societies , so can they print enough to give to ALL THE LENDERS to keep their heads above water AND to lend?

The building societies have already said they are going to have to put up their mortgage rates to cover the FSCS payments. And there has been talk about mortgage funding drying up:

Without funding, mortgage lending will dry up. “To the extent that funding is restricted, it will restrict our ability to lend,” Nationwide chief executive Graham Beale told the TSC. The BSA’s Adrian Coles reckons “it is quite conceivable that lending will fall this year” as funding evaporates

Last week the IMF said the government will have to nationalise the banks to get them lending but WHERE WILL THE MONEY COME FROM?

Edited by Sybil13

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Last week the IMF said the government will have to nationalise the banks to get them lending but WHERE WILL THE MONEY COME FROM?

Xerox?

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Xerox?

No Epson. Those printers have the cheapest non-brand cartridges.

Ink might run a bit mind.

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Yes it does.

But most on this site know me as an uber-bear.

Bearish as a great big bear's bare ar$e!

Apologies Mr. P., I thought you had started batting for the other side...........

1. Is the price that someone is prepared to pay...over priced = no demand.

2. Prices in real terms will not go back to 2007 levels any time soon...if ever.

1. Nearly. It's the ability to undertake a transaction at defined price i.e. to have the funds to complete the transaction. Need and want by itself is not demand. Until the funding gap is filled then demand is not at the same level as in 2007. And as lenders will never lend in the same way as they did in 2007, I can't see any way that prices will go back up again.

Notice, no replies from BULLS.

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Apologies Mr. P., I thought you had started batting for the other side...........

1. Nearly. It's the ability to undertake a transaction at defined price i.e. to have the funds to complete the transaction. Need and want by itself is not demand. Until the funding gap is filled then demand is not at the same level as in 2007. And as lenders will never lend in the same way as they did in 2007, I can't see any way that prices will go back up again.

Notice, no replies from BULLS.

I am becoming rather camp when looking round garden centres. "Oh look at that . . . (hand goes to side of face), that's simply gorgeous."

I've no thoughts about fixing dix or anything, just a bit precious around shrubs and the like and in particular I am partial to a mixed colour Bougainvillea.

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Notice, no replies from BULLS.

Too busy trying to get an answer to Number 2 other than "printy printy". When they get to the end of their sentence and realise that will lead to inflation then they'll think better of it and go hide.

McHammy knew all along we were in for 35% falls and yet has tried his hardest to change that figure ever since. And Rinoa is so obviously an EA or BTL landlord that has nothing else to do other than spend his time on here trying to convince anyone (including himself) that prices have bottomed.

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