Jump to content
House Price Crash Forum
boo

What Have The Govt Actually Done?

Recommended Posts

Hi

The media seems to have gone into hyperdrive telling us that everything is ok now, but I cant see what really has been done to cause this?

From what I can see only 2 things have been done

1. the lowering of interest rates so as to help those struggling financially and to shaft savers into spending as they see their savings diminish. (I know a few people who have bought houses recently as their savings were earning bugger all so they decided to fix at a low rate and buy)

2. Print money

People are feeling more confident but this is due to all the positive spin and not really based on any substance. Unemployment will get worse as those made redundant will have spent their pay off and be showing up on the dole queue soon. What new jobs are being created? I dont see where, the govt told us that it was ok for manufacturing to go as we had the service sector but those jobs are going...so then what?

What worries me is the govts refusal to really discuss how they intend to pay everything back. I mean its got to be taxes we all know that. And what happens when interest rates go back up, I know people who are ok now as they have a bit of spare cash due to low rates making their mortgages easier to pay, but they will be screwed when it goes back up.

I want to believe that we are over the worst but if you dig just a little bit its clearly isnt

Share this post


Link to post
Share on other sites

They've done a bit of artexing over the cracks. Sadly they've used cheap poisonous artex that'll break off and crack worse than what's underneath fairly soon.

They been spinning so hard I think they could generate enough electric to power half of the UK if you could wire the buggers up.

Share this post


Link to post
Share on other sites

They think it's a confidence problem, and if confidence can be restored then it's back to the good 'ol days. Trouble is most people think it's a problem of massive, crippling debt and are reducing their exposure to it..... while the government is borrowing on our behalf to make up this shortfall. <_<

They been spinning so hard I think they could generate enough electric to power half of the UK if you could wire the buggers up.

Good idea!

metallicafanatic_ride_the_ligting.jpg

Share this post


Link to post
Share on other sites

I stole this from list from the other website, there's more to add to the list on the other thread.

From what I've picked up, the following have a sell by date:

1 September 2009 - fuel duty will rise by 2p a litre (2.3p including VAT)

1 January 2010 - end of stamp duty holiday on properties costing under £175,000

1 January 2010 - standard VAT rate will return to 17.5 per cent

April 2010 - new higher rate tax rate of 50%

April 2010 - £350 million brought forward by government for house building in 2008-09 from 2009/2010 and 2010/2011 starts to run out, leading to significant decline in house building

April 2010 - end of Open Market Homebuy and Mychoice Homebuy schemes to "help" first time buyers worth £200 million

June 2010 - emergency Conservative budget seeking to deal with largest peacetime projected UK government deficit. Tax rises or spending cuts needed to cut deficit by at least £70-80 billion.

Edit, removed the link because it won't work on here.

Edited by enrieb

Share this post


Link to post
Share on other sites
They think it's a confidence problem, and if confidence can be restored then it's back to the good 'ol days. Trouble is most people think it's a problem of massive, crippling debt and are reducing their exposure to it..... while the government is borrowing on our behalf to make up this shortfall. <_<

+1

From the idiocracy perspective it would be interesting to see what would happen if confidence returned. Could we actually have another hedonistic boom and avoid the trap door of deflation?

Share this post


Link to post
Share on other sites
+1

From the idiocracy perspective it would be interesting to see what would happen if confidence returned. Could we actually have another hedonistic boom and avoid the trap door of deflation?

In my opinion to go back to those booming days would require the banks to start offering att least 95% ltv for houses again, and at competative rates. The banks has still a lot of crap to clear off their balance sheets and with bankruptcies rising it will get worse. This boom is a temporary blip brought on by low transactions and large deposit holders. However if the media are sucess with their spin the could turn sentiment.

Edit : sorry about spelling typed too quick and can't be bothered to fix

Edited by boo

Share this post


Link to post
Share on other sites

The construction of a secret Morlock cage, deep underneath buckingham palace has brought much of the problem under control.

Hopefully the last few will soon fall into the government constructed Morlock traps, the recession will be over, and we can all start breeding Morlocks again.

Share this post


Link to post
Share on other sites

In September 08, They shat themselves and showed panic. Then they threw money at the problem, gave it to the banks. Now it looks like they were lucky with the big gamble they took in the short term.

Long term who knows.

Share this post


Link to post
Share on other sites

they have screwed us all and wrecked this country, they have robbed savers and pensioners of their interest to meet their own agenda's ie keep property prices high so their portfolio's do not lose to much value, and they have screwed over the next 2 generations with this huge amount of debt and they don't care as it's i'm alright jack F**K you all

Share this post


Link to post
Share on other sites
I stole this from list from the other website, there's more to add to the list on the other thread.

Eh...there is another website :o

Share this post


Link to post
Share on other sites

pulling the same trick they did back in 2001-02

nothing new here

their only plan nowdays to increase economic growth is by increasing the money supply

Share this post


Link to post
Share on other sites

we've been stuck at 0.5% interest rates for quite some time, before that we had pretty severe IR cut's [albeit belatedly] plus that and the VAT we were told would take time to have an impact on the 'real economy'. And the full effect of the impact is still unlikely to have been seen yet, we probably need to wait a few more months.

Then there's other fiscal stimulus in addition to the VAT cut which involved mainly some tax breaks, welfare spending and brining forward of some future spend.

Then there's the rescuing of the financial sector. That was pretty important in putting a floor under that particular problem.

Anyone who tells you QE was the magic bullet is a bit of an idiot in my view. It has it's effect as part of IR policy, but any idea that it's required to 'get banks lending' sounds nonsensical. The debate is in the relative impacts of IR policy and fiscal policy, the lefties tend to push for a ZIRP policy but emphasise fiscal policy above monetary policy as the catalyst for recovery. The monetarist loons [and george osborne] will bigup the role of monetary policy.....that's becuase they don;t like govt. deficit spending.

As for what the tories will do, i don't really know why anyone thinks their policies won't be anything but dictated by news headlines. If gordon the gormless ran deficits even after a mild bump in the economy post 2001, then i'd hazard a guess that reducing the deficit to anything below the levels the gormless ran would wreak havoc without a major resurgence in GDP and private sector employment. And where would that resurgence come from, why the govt. sector silly.

We also might have to get used to 0.5% IR's being normal, and we might have job in weaning that lot at the BoE off of their QE fix. They might dip in and out of that nasty little habit.

Share this post


Link to post
Share on other sites

What the Gov. have done is equivalent to paying off your mortgage payments with a new credit card.

tis all alright till mr repo man knocks at your door.

Nonetheless this could keep the insanity going for another 2-5 years.

Considering Anglosaxon western societies are now utterly bankrupt, economic disaster zones, it makes me laugh at how long they have kept the whole thing going.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   292 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.