PropertyGuru Posted June 21, 2010 Share Posted June 21, 2010 early bequests to offspring is to a significant extent equivalent to de-leveraging the ponzi because the boomers transferring this wealth to their kids are not likely to ever see it back. Therefore it is similar in essence , when the whole macro picture is considered, a bit like a default which is eactly how ponzis are de-levered. In this case the defaulters are then genX/genY FTB-ers, and the creditors that take a haircut on their 'investment' are the Bank of Mum and Dad. you're one of these wierdo losers who, having been caught out, rather than holding his hands up and saying 'its a fair cop', tries to argue till he's blue i the face on a position that is laughably wrong. YOU SAID parents extracting money from their property to give to their kids to buy property 'deleverages' the property ponzi. It doesn't. Obviously. ******wit. Quote Link to comment Share on other sites More sharing options...
Timm Posted June 21, 2010 Share Posted June 21, 2010 you're one of these wierdo losers who, having been caught out, rather than holding his hands up and saying 'its a fair cop', tries to argue till he's blue i the face on a position that is laughably wrong. YOU SAID parents extracting money from their property to give to their kids to buy property 'deleverages' the property ponzi. It doesn't. Obviously. ******wit. Where did he say that? I'm only seeing "the boomers are passing their fake wealth onto their offspring early", which could be deposits in a bank account, rather than nominal equity in property. Perhaps he was getting at the idea that if the bank deposits of the wealthy are used to purchase property from over leveraged owners, this would have  a deleveraging effect? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 21, 2010 Share Posted June 21, 2010 Parents should teach their children to 'aggle. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted June 21, 2010 Share Posted June 21, 2010 Perhaps he was getting at the idea that if the bank deposits of the wealthy are used to purchase property from over leveraged owners, this would have  a deleveraging effect? Maybe. But more to the point, it means the beneficiaries of this parental money are buying with far less leverage than those on the larger mortgages pre-Northern-Rock. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted June 21, 2010 Share Posted June 21, 2010 I was thinking along those lines as 45 passed (that was around peak-bubble-time, so I had to resist!). So I embarked on the alternative strategy: tax-efficient investing. I may become a fiftysomething FTB, but at least I shall pay off the mortgage from untaxed money Well played. Quote Link to comment Share on other sites More sharing options...
DeepLurker Posted June 21, 2010 Share Posted June 21, 2010 The prodigal son / forgiveness slant on things doesnt take your fancy then? I find the Prodigal Son story from the christian bible a very difficult story to get my head round; it seemed to me to be a tale of rewarding laziness and stupidity, rather than a tale of forgiveness Its use in the context of home buying is rather appropriate, although I suspect that we find it appropriate for different reasons Quote Link to comment Share on other sites More sharing options...
Riedquat Posted June 21, 2010 Share Posted June 21, 2010 Where did he say that? I'm only seeing "the boomers are passing their fake wealth onto their offspring early", which could be deposits in a bank account, rather than nominal equity in property. Perhaps he was getting at the idea that if the bank deposits of the wealthy are used to purchase property from over leveraged owners, this would have  a deleveraging effect? If it's that then you could view it as simply making a net correction to the prices, just in a bodged, messy roundabout way. The problem is that still doesn't completely compensate for the rises that generation has viewed as their wealth, and that it's a lousy way to correct the market anyway. My parents have tried to push me to do this to buy a house. Quote Link to comment Share on other sites More sharing options...
DeepLurker Posted June 21, 2010 Share Posted June 21, 2010 One thing I've noticed on the DM article, none of the comments have been published! Still nothing... Time to get out the tinfoil hats? Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted June 21, 2010 Share Posted June 21, 2010 You really are a pillock aren't you. Excuse me ? ! Care to explain that ? Quote Link to comment Share on other sites More sharing options...
scepticus Posted June 21, 2010 Share Posted June 21, 2010 YOU SAID parents extracting money from their property to give to their kids to buy property 'deleverages' the property ponzi. It doesn't. Obviously. yet you have not actually addressed the point I made to show why it is wrong, you just said its wrong without explaining why. And then tried to cover up this deficiency of your argument by appending a little insult. very poor, for a self proclaimed guru. Quote Link to comment Share on other sites More sharing options...
twatmangle Posted June 21, 2010 Share Posted June 21, 2010 (edited) To paraphrase "I'm 22 and I demand to be able to borrow money to buy a house. I have been turned down for a mortgage because I wanted to borrow 4x my salary to buy a property in a very depressed market, in the most uncertain economic climate for decades. I have relied on others to fund me for everything in life so far, and have not demonstrated any ability to save money or budget properly, indeed I am actaully in debt. The system is stacked against me. It's stressful." Sorry if this sounds harsh, but I have no sympathy for her plight. EDIT: Clarity. Edited June 21, 2010 by twatmangle Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted June 21, 2010 Share Posted June 21, 2010 To paraphrase "I'm 22 and I demand to be able to borrow money to buy a house. I have been turned down for a mortgage because I wanted to borrow 4x my salary to buy a property in a very depressed market, in the most uncertain economic climate for decades. I have relied on others to fund me for everything in life so far, and have not demonstrated any ability to save money or budget properly, indeed I am actaully in debt. The system is stacked against me. It's stressful." Sorry if this sounds harsh, but I have no sympathy for her plight. EDIT: Clarity. id feel more sympathy for her parents theyve probably just pissed 70K up the wall Que Sera Quote Link to comment Share on other sites More sharing options...
Fishbone Glover Posted June 21, 2010 Share Posted June 21, 2010 I've no sympathy for her plight either. The bit that I can't understand is why a 22 year old would want to saddle themselves with that amount of debt for a crappy one bed flat in the first place! She must be doing alright though - I make her to be on £45K a year, which is bloody good for someone of that age, which further highlights just how overpriced that flat is. Quote Link to comment Share on other sites More sharing options...
scepticus Posted June 21, 2010 Share Posted June 21, 2010 id feel more sympathy for her parents theyve probably just pissed 70K up the wall which is exactly my point. Quote Link to comment Share on other sites More sharing options...
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