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The Real Problem: Inability To Release Equity

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According to some geezer being interviewed on the BBC this morning, this is one of the major factors behind the continued economic slump.

Did anyone else hear this earlier, can you elaborate? Absolutely unbelievable, I was tearing my hair out. The statement wasn't even questioned! This kind of stupid idiotic mentality pedalled bythe media to the masses sounds the flashing signals that we are blissfully sewing the seeds of the next bust and next time, if not this, it will finish the current fraudulent system. It can't come soon enough.

Reading between the lines - through quantitative easing they are pillaging savers and production in general to give to debtors to redeem them and/or go and spend on the high street and drive a 'recovery'.

They were discussing the following story...

http://www.google.com/hostednews/ukpress/a..._0V-TZHKiHQXF_A

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Guest KingCharles1st

I listened to something similar on R5 around 9am, with Nicky Campbell hosting a discussion with an intelligent bearish realist(FP?) and some BBC idiot journalist regarding the 125% mortgage deal.

Basically, few people can understand anything and it just pisses me right off.

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I listened to something similar on R5 around 9am, with Nicky Campbell hosting a discussion with an intelligent bearish realist(FP?) and some BBC idiot journalist regarding the 125% mortgage deal.

Basically, few people can understand anything and it just pisses me right off.

It was Andy Verity who was the bloke who sold to rent a few years back because he thought prices were too high. He is pretty balanced for the BBC.

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It is true, the inability to MEW has massively reduced spending, at the Peak MEW was 10% of UK disposable income, now the value is -4%, as people overpay there mortgages.... The change is equiv in size to the UKs military defence budget each year (or 24 Billion Pounds). This money now isn't being spent in shops and isn't going round the money go round, it is one heck of a pay cut for the UK, and a heck of alot of money missing from the high street. Here is the graph from the BOE

hew.gif

It is the real problem, but is the reverse the solution?

Edited by moosetea

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It is true, the inability to MEW has massively reduced spending, at the Peak MEW was 10% of UK disposable income, now the value is -5%.... the change is equiv to twice the UKs defence budget, this money now isn't being spent in shops and isn't going round the money go round, it is one heck of a pay cut for the UK....

It is the real problem, but is the reverse the solution?

...all of which would be severe enough with stable employment and incomes

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