Dorkins Posted August 11, 2009 Share Posted August 11, 2009 Well, it’s certainly true though isn’t it. I’m personally seeing quite a few in their early 20s buying their first home, all with substantial assistance from their parents – typically around £40,000. Maybe that Times article was right about a new two-tier society emerging? It’s not what you do, but to whom you were born. All this BOMAD stuff is great news for future social equality, families with money seem determined to lose it all on overpriced assets so they can join the masses who have to make their own way in life on their wages alone. An added bonus is that these huge deposits (many no doubt MEWed) are helping to recapitalise our stricken banks and building societies. Happy days! Quote Link to comment Share on other sites More sharing options...
kilroy Posted August 11, 2009 Share Posted August 11, 2009 All this BOMAD stuff is great news for future social equality, families with money seem determined to lose it all on overpriced assets so they can join the masses who have to make their own way in life on their wages alone. An added bonus is that these huge deposits (many no doubt MEWed) are helping to recapitalise our stricken banks and building societies. Happy days! Of course, factor in that BOMAD is not a fractional reserve institution so for every 100k that BOMAD takes out of a bank and lends, it could have been around 900k if lent by a fractionally reserving bank. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted August 11, 2009 Share Posted August 11, 2009 Local BBC news last night ran a story on not enough affordable homes are being built because of the property crash so schemes are having to build less than originally planed to get the schemes going (50% down to 25% affordable houses). The piece finished by saying that when property prices recover more affordable homes will be built. I can't even laugh about it anymore. Apart from Nazi Germany are there any other examples in history of a country in the grip of such mass delusion? Quote Link to comment Share on other sites More sharing options...
bear_or_bull Posted August 11, 2009 Share Posted August 11, 2009 The 'bank of mum & dad' syndrome reminds me that this whole scam is about distribution of wealth, not creation.Parents who've downsized rub their hands with glee at having a hefty pot of cash only to end up passing it on to their kids to keep this ludicrous bubble inflated. Who benefits? The government, the banks and the odd investor who times it right. I saw this ad appear again recently, too - a brazen attempt to get mum & dad to help out. Shameless. Exactly. This is how it happens. Social change. You cannot have rising prices relative to earnings without it. The brovernment has preferentially helped rich families though its policies. And as most baby boomers own property, most families are rich families. This generational passing of wealth in these family helps out their "younguns" ( who might be anything to their mid-30s) at the cost of significanly reduced meritocracy. To those under 30 it matters most what your parents did. We've seen this before. It's a transfer of wealth. A zero sum game. Property in this case really is theft. If it continues, and remember it's 100% government supported and encouraged, it will lead to a society of property haves and renting have nots. A rentier Victoriana. The bulls on this site seem to think this is great, although I've not known one publically admit it. They pretend rising prices are good for everyone and attack ad hominem any free thinkers as doom mongers, as does the conventional establishment. More surprising is that the general public seems to think it's great too. They know it's going on, otherwise they wouldn't worry about "missing the boat" but they either think it's good (as they presume to be on the winning side) or they don't think at all. Who knows? We will see which way it goes, but there are only two choices: property price falls relative to earnings or social change. At the moment it's still 60:40 to price drops, but the momentum is clearly the other way for now. Choose your poison. Quote Link to comment Share on other sites More sharing options...
richcrashman Posted August 11, 2009 Share Posted August 11, 2009 Make a complaint with Ofcom about it. If we all complain about this it will at least take up some up time of the ditors etc and maybe make them think twice if they know they'll get another complaint. Quote Link to comment Share on other sites More sharing options...
Captain Cavey Posted August 11, 2009 Share Posted August 11, 2009 I can't even laugh about it anymore.Apart from Nazi Germany are there any other examples in history of a country in the grip of such mass delusion? Tulip Mania and this turned out right for everyone, didn't it?? Quote Link to comment Share on other sites More sharing options...
bear_or_bull Posted August 11, 2009 Share Posted August 11, 2009 Of course, factor in that BOMAD is not a fractional reserve institution so for every 100k that BOMAD takes out of a bank and lends, it could have been around 900k if lent by a fractionally reserving bank. Now that is a very good point. Another poster presumed that this infusion of capital from BOMAD would not work. I'm not so sure. If the market can rise on small volume to the point where credit is relaxed and people pile back in (partly through fear) it's at least hypothetically possible that it could be a recovery. (of course, if wages don't rise then you need to continue this transfer at a suitable scale and rate forever, as you can only borrow so much). But this observation is a good one. BOMAD is not fractional reserve. This matters. Quote Link to comment Share on other sites More sharing options...
xcojo Posted August 11, 2009 Share Posted August 11, 2009 I can't even laugh about it anymore.Apart from Nazi Germany are there any other examples in history of a country in the grip of such mass delusion? Godwin. Now I've seen it all Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted August 11, 2009 Share Posted August 11, 2009 Godwin. Now I've seen it all Have you seen the inside of a bankruptcy court yet? Quote Link to comment Share on other sites More sharing options...
xcojo Posted August 11, 2009 Share Posted August 11, 2009 Have you seen the inside of a bankruptcy court yet? I don't know about you but my house has increased in value for four months in a row and my shares on the FTSE are going mad. Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted August 11, 2009 Share Posted August 11, 2009 xcojo - Joined: 28-July 09 Another one Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted August 11, 2009 Share Posted August 11, 2009 I don't know about you but my house has increased in value for four months in a row and my shares on the FTSE are going mad. Oh dear. Into property AND shares? It's going to be a long, hard winter for you, old chap. Quote Link to comment Share on other sites More sharing options...
kilroy Posted August 11, 2009 Share Posted August 11, 2009 I don't know about you but my house has increased in value for four months in a row and my shares on the FTSE are going mad. I am always pleased to meet people taking the other side of my trades Quote Link to comment Share on other sites More sharing options...
The Realist Posted August 11, 2009 Share Posted August 11, 2009 Please allow me. You are a VI doom and gloom ramper. It's all gone pear shaped and you have started to realise you're not getting a 90% off 2007 price house. You can choose. Try and get a bargain now while they are about 10% off, even though the houses for sale aren't the pick of the crop. Or option 2, save a deposit and pay the going rate for a nice place. We didn't have a crash. Nice try for ramping one up but homeowners didn't allow it to happen. Oh Sibley, they'll never love you until you stop spoiling their pyschological mutual support game. Try reading 'Games People Play' by Eric Berne. The game (called Ain't It Awful) goes like this - Poster A feels unsure and thinks that he might be wrong, so he looks for pyschological support. Poster A posts 'I think that things are awful' Poster B replies 'Yes I do' Poster C adds 'I think that they are very awful and going to get worse' etc, etc ..... Poster A feels happier now and less unsure because everybody agrees with him. Then you appear. Shame on you! Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted August 11, 2009 Share Posted August 11, 2009 Joined: 26-July 09 And another one Is anyone keeping count of these clowns? Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted August 11, 2009 Share Posted August 11, 2009 Oh Sibley, they'll never love you until you stop spoiling their pyschological mutual support game. Try reading 'Games People Play' by Eric Berne.The game (called Ain't It Awful) goes like this - Poster A feels unsure and thinks that he might be wrong, so he looks for pyschological support. Poster A posts 'I think that things are awful' Poster B replies 'Yes I do' Poster C adds 'I think that they are very awful and going to get worse' etc, etc ..... Poster A feels happier now and less unsure because everybody agrees with him. Then you appear. Shame on you! A very valid point. Mutual reinforcement fed the property bubble and it's why the MSM is trying so desperately to find people who agree there are 'green shoots' everywhere. You see your analysis cuts both ways. Quote Link to comment Share on other sites More sharing options...
kilroy Posted August 11, 2009 Share Posted August 11, 2009 Oh Sibley, they'll never love you until you stop spoiling their pyschological mutual support game. Try reading 'Games People Play' by Eric Berne.The game (called Ain't It Awful) goes like this - Poster A feels unsure and thinks that he might be wrong, so he looks for pyschological support. Poster A posts 'I think that things are awful' Poster B replies 'Yes I do' Poster C adds 'I think that they are very awful and going to get worse' etc, etc ..... Poster A feels happier now and less unsure because everybody agrees with him. Then you appear. Shame on you! Did your spine shrivel as a child? Quote Link to comment Share on other sites More sharing options...
The Realist Posted August 11, 2009 Share Posted August 11, 2009 Did your spine shrivel as a child? No, but yours obviously did. Quote Link to comment Share on other sites More sharing options...
Si1 Posted August 11, 2009 Share Posted August 11, 2009 I think this guy was on the radio this morning, and his solution to the low volumes was to let first time buyers borrow more money, rather than let prices fall to affordability levels. Criminal. nice of him to offer - shame the banks aren't! Things have got infinitely better...The UK's banks may be struggling with huge losses and bad debts, but the Bank of Mum and Dad is flush with cash and, so it seems, is single-handedly reviving the country's housing market.... "One of the flats I sold at the weekend, the buyer brought his mum and dad down because they are putting down the deposit of over £100,000," says David. Quote Link to comment Share on other sites More sharing options...
DeepLurker Posted August 11, 2009 Share Posted August 11, 2009 (edited) Joined: 26-July 09And another one Is anyone keeping count of these clowns? I wish the forum had a feature to track posters who use the same IP address. It would greatly please the devil inside me to have confirmation that Rinoa/Valerius/Osborne are all posting from the same computer. EDIT: for clarity. Edited August 11, 2009 by DeepLurker Quote Link to comment Share on other sites More sharing options...
The Realist Posted August 11, 2009 Share Posted August 11, 2009 A very valid point. Mutual reinforcement fed the property bubble and it's why the MSM is trying so desperately to find people who agree there are 'green shoots' everywhere. You see your analysis cuts both ways. Good point. But the key is to recognise it for what it is whichever way you cut it. Thanks for the sensible reply. Quote Link to comment Share on other sites More sharing options...
kilroy Posted August 11, 2009 Share Posted August 11, 2009 No, but yours obviously did. Why so? Quote Link to comment Share on other sites More sharing options...
The Realist Posted August 11, 2009 Share Posted August 11, 2009 Why so? Sorry, impulse reply. Enough personal abuse on this site without me adding to it. Quote Link to comment Share on other sites More sharing options...
MinceBalls Posted August 11, 2009 Share Posted August 11, 2009 I don't know about you but my house has increased in value for four months in a row and my shares on the FTSE are going mad. Green shoots then? More like Brown pants for you. Quote Link to comment Share on other sites More sharing options...
kilroy Posted August 11, 2009 Share Posted August 11, 2009 Sorry, impulse reply. Enough personal abuse on this site without me adding to it. Accepted. Of course I was being ironic as it is an overused term in Eric Berne's book. Not obvious I guess. Quote Link to comment Share on other sites More sharing options...
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