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Realistbear

U K Bond Yeilds Must Rise To Pay For Deficit

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http://www.bloomberg.com/apps/news?pid=206...id=aP6s_Co8GDlo

U.K. Bond Yields May Rise as Investors Shun Deficits, BOE Says

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By Brian Swint and Gavin Finch

Sept. 21 (Bloomberg) -- Bond yields in countries such as the U.K. and the U.S. may rise as investors shun the debt of nations with large trade deficits, the Bank of England said.

Its the third piece of the puzzle that will coninue to lay the housing market to waste:

1. High unemployment

2. Tightening credit

3. Rising IR

A veritable witches brew for the coming winter months of house price doom.

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Its the third piece of the puzzle that will coninue to lay the housing market to waste:

1. High unemployment

2. Tightening credit

3. Rising IR

A veritable witches brew for the coming winter months of house price doom.

Yes indeed, a daunting combination of factors there for the housing market.

On a recent Matin Lewis programme, I couldn't believe how people are complaining about interest rates now, when they are only paying about 5%. What short memories people have, those rates of over 10% were not that long ago. (or maybe I am just giving away what an oldie I am :lol: ).

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Yes indeed, a daunting combination of factors there for the housing market.

On a recent Matin Lewis programme, I couldn't believe how people are complaining about interest rates now, when they are only paying about 5%. What short memories people have, those rates of over 10% were not that long ago. (or maybe I am just giving away what an oldie I am :lol: ).

Not just the housing market!

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http://www.bloomberg.com/apps/news?pid=206...id=aP6s_Co8GDlo

U.K. Bond Yields May Rise as Investors Shun Deficits, BOE Says

Share | Email | Print | A A A

By Brian Swint and Gavin Finch

Sept. 21 (Bloomberg) -- Bond yields in countries such as the U.K. and the U.S. may rise as investors shun the debt of nations with large trade deficits, the Bank of England said.

Its the third piece of the puzzle that will coninue to lay the housing market to waste:

1. High unemployment

2. Tightening credit

3. Rising IR

A veritable witches brew for the coming winter months of house price doom.

Everything's turning Zombie this autumn.

Gordon%20Brown%20claw.jpg

Get ready!!

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What I find interesting is the way the base rate (0.5% remember!) has so little impact on what people actually pay to borrow money these days. Bond yields are the result of an auction and BR has no affect at all on that. The BoE could reduce the BR to zero now and it would make not a single iota of difference to the economy. I do wonder if it's equally irrelevant on the up-side? Could the BR be doubled or tripled without any impact? I suspect, yes.

New Labour have broken the last lever of control. ;)

Edited by Nationalist

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What I find interesting is the way the base rate (0.5% remember!) has so little impact on what people actually pay to borrow money these days. Bond yields are the result of an auction and BR has no affect at all on that. The BoE could reduce the BR to zero now and it would make not a single iota of difference to the economy. I do wonder if it's equally irrelevant on the up-side? Could the BR be doubled or tripled without any impact? I suspect, yes.

New Labour have broken the last lever of control. ;)

It appears that the BoE the one trick pony has found it's that it's special tool is totally irrelevant.

System failure appears to be looming.

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What I find interesting is the way the base rate (0.5% remember!) has so little impact on what people actually pay to borrow money these days. Bond yields are the result of an auction and BR has no affect at all on that. The BoE could reduce the BR to zero now and it would make not a single iota of difference to the economy. I do wonder if it's equally irrelevant on the up-side? Could the BR be doubled or tripled without any impact? I suspect, yes.

New Labour have broken the last lever of control. ;)

0% base rate would affect the banks...they would have to put sales rates UP to cover for:

borrowers on BR-%

borrowers @ BR

no interest earned from deposits at the BoE.

oddly, it appears that a raising of base rates would be of benefit to the banks, and keep borrowing costs reasonably low....but then theres inflation to consider.

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Guest P-Diddly
Yes indeed, a daunting combination of factors there for the housing market.

On a recent Matin Lewis programme, I couldn't believe how people are complaining about interest rates now, when they are only paying about 5%. What short memories people have, those rates of over 10% were not that long ago. (or maybe I am just giving away what an oldie I am :lol: ).

Early 90's now. I can remember the old chap paying 21% on secured business overdraft facilities. Resulting in the inevitable.

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Early 90's now. I can remember the old chap paying 21% on secured business overdraft facilities. Resulting in the inevitable.

How long did he last?

Jesus that would take some profit to keep that overdraft serviced.

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http://www.bloomberg.com/apps/news?pid=206...id=aP6s_Co8GDlo

U.K. Bond Yields May Rise as Investors Shun Deficits, BOE Says

Share | Email | Print | A A A

By Brian Swint and Gavin Finch

Sept. 21 (Bloomberg) -- Bond yields in countries such as the U.K. and the U.S. may rise as investors shun the debt of nations with large trade deficits, the Bank of England said.

Its the third piece of the puzzle that will coninue to lay the housing market to waste:

1. High unemployment

2. Tightening credit

3. Rising IR

A veritable witches brew for the coming winter months of house price doom.

Yet the largest falls in property prices came ain the period when bond yields were getting lower? I would rather say that low bond yields will be a symptom (not the cause) of falling house prices not rising house prices. If bond prices are rising and yields are going down this will be symptomatic of a very weak economy and in response to falling asset prices. We have had bond yields rising heavily since March yet in this period house prices have been rising...

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How long did he last?

Jesus that would take some profit to keep that overdraft serviced.

The sort of profit that would be almost unthinkable now for the majority of businesses, BUT achievable for some in the 90's as the recession was worked through.

Shows how close to the wire things are now though, thanks to the fixed costs which are way, way too high for the market environment even of a few years ago.

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Guest P-Diddly
How long did he last?

Jesus that would take some profit to keep that overdraft serviced.

Not long. But here is a trick. Shadow director under the Insolvency Act, don't know if it's been repealed by later Acts but it's a serious frightener to the banks.

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Not long. But here is a trick. Shadow director under the Insolvency Act, don't know if it's been repealed by later Acts but it's a serious frightener to the banks.

still naughty. A bankrupt Director of course cant BE a director. but maybe the wife can...she takes no part in the new business except to perform the duties....sign the dividend award minutes, annual return and so on.

SHADOW DIRECTOR A person not officially appointed a director but who’s opinions are influential in the company’s decision making process. Shadow director assume the responsibility of directors under company law even though they have not been formally appointed as a director of the company ..

so a bankrupt shouldnt be a shadow either.

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Guest P-Diddly
still naughty. A bankrupt Director of course cant BE a director. but maybe the wife can...she takes no part in the new business except to perform the duties....sign the dividend award minutes, annual return and so on.

SHADOW DIRECTOR A person not officially appointed a director but who’s opinions are influential in the company’s decision making process. Shadow director assume the responsibility of directors under company law even though they have not been formally appointed as a director of the company ..

so a bankrupt shouldnt be a shadow either.

Accused the bank of acting as shadow director. It worked too.

So I guess you're right, as most UK banks are now bankrupt.

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It appears that the BoE the one trick pony has found it's that it's special tool is totally irrelevant.

yes i saw him interviewed on the bbc programme and he did indeed seem irrelevant + made the most pathetic remarks about how the public don't want to hear bad news when things are seemingly going well and he had to bear that in mind - i mean once you run an economy based on popularism you are doomed, thats why we had/have the bubble syndrome, the people in charge are utter morons of the highest order

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