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Guest sillybear2

We cannot complete globally because our cost of living is so high, and unless houses are kept artificially inflated The City goes bust (again).

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Guest UK Debt Slave

"City of London"........dieing centre

Northsea Oil/Gas........Falling away

Uk Manufactoring........

http://www.telegraph.co.uk/finance/newsbysector/industry/7857941/UK-slides-in-manufacturing-rankings.html

& one day they see that the UK is BUST!

Mike

More terrifying still is the absolute ignorance and denial of the masses.

Even more terrifying is the likely scenario that the same will accept 'government designed solutions' to the above when there is no solution without a drastic cut in living standards and quality of life for everyone, which of course are not 'politically acceptable'

Conclusion:

What a fekkn mess we are in! :(

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We cannot complete globally because our cost of living is so high,

Exactly.

BTW, I've updated my sig. See below.

and unless houses are kept artificially inflated The City goes bust (again).

Actually I've found out that the UK banks can absorb a loss of up to 150bn, according to the BoE. See thread on "Financial Stability".

LINK: http://www.housepricecrash.co.uk/forum/index.php?showtopic=145958&view=findpost&p=2592601

Edited by Tired of Waiting

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We cannot complete globally because our cost of living is so high, and unless houses are kept artificially inflated The City goes bust (again).

Nah... Japan isn't any cheaper than UK and yet they are a manufacturing powerhouse...

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Its wrong

They decrease the cost of buying other currencies :lol::lol:

Yes, in the short term, whilst the bubble is inflating, the pound was "strong" ( = high), making imports cheaper than our national products, and our exports more expensive abroad. Not very sustainable. And now we are where we are.

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Nah... Japan isn't any cheaper than UK and yet they are a manufacturing powerhouse...

Japan fast growth in the 70s and 80s stopped when they had a property bubble, and they have been stagnant for 2 decades.

Germany did much better (despite the huge costs of re-unification), and is still a strong exporter. Properties there are much cheaper than here - for workers, businesses and governments. All have lower costs.

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Japan fast growth in the 70s and 80s stopped when they had a property bubble, and they have been stagnant for 2 decades.

Germany did much better (despite the huge costs of re-unification), and is still a strong exporter. Properties there are much cheaper than here - for workers, businesses and governments. All have lower costs.

and theyre better at football :D

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More terrifying still is the absolute ignorance and denial of the masses.

Even more terrifying is the likely scenario that the same will accept 'government designed solutions' to the above when there is no solution without a drastic cut in living standards and quality of life for everyone, which of course are not 'politically acceptable'

Conclusion:

What a fekkn mess we are in! :(

At least we've got the football to distract us....

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"City of London"........dieing centre

Northsea Oil/Gas........Falling away

Uk Manufactoring........

http://www.telegraph.co.uk/finance/newsbysector/industry/7857941/UK-slides-in-manufacturing-rankings.html

& one day they see that the UK is BUST!

Mike

I really can see what you mean..... the ciy is vibrant and theres no reason at all to belive it won't continue to be a strong financial centre, probably the strongest in Europe for many years to come ( in world terms though China/hong Kong will become the big new chief).... didn't they just make a new discovery in the north sea, aren't they also looking at all these north sea rim developments like nuclear and wind and haven't they just struck a new big field off the coast of eastern scotland.... equally if we still have an army to defned it theres the potential gushers in the flaklands to reap benefits from.. and if we get a look in some of the supposed mineral jackpots in afghanistan..... plus of course the devlopment of new techniques such as burning seams of coal under the north sea to produce powere ( like they do in australia)..... of course it won't all come off but things are cenrtainly not as dark as you make them out to be.

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Guest spp

I'll throw in a massive pension deficit and a distinct lack of Gold and Silver mines!!

Thank god we have a printing press! :ph34r:

Edited by spp

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Actually I've found out that the UK banks can absorb a loss of up to 150bn, according to the BoE. See thread on "Financial Stability".

LINK: http://www.housepricecrash.co.uk/forum/index.php?showtopic=145958&view=findpost&p=2592601

Isn't the housing stock of the UK around the £4,000 billion mark?

Even if only 25% of that is mortgaged, then the total UK loss is 10 billion per percentage point fall in house price.

Oh dear. I wonder what they'll do to stop it?

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Isn't the housing stock of the UK around the £4,000 billion mark?

Even if only 25% of that is mortgaged, then the total UK loss is 10 billion per percentage point fall in house price.

Oh dear. I wonder what they'll do to stop it?

It's only a problem for the banks if

  1. There's a HPC

  2. They repossess and have to realise the falls

Otherwise, the banks are fine - it's the borrowers who take the knock. Or have I missed something?

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Nah... Japan isn't any cheaper than UK and yet they are a manufacturing powerhouse...

Just imagine if we had experienced properly controlled house price inflation over the last 30 years? We would not need the wages which make us so uncompetitive. High house prices are a key driver of wages even when they cannot keep up like now! It does play a good part in our problems. It also causes people to have a paper wealth that they do not earn and then want to mortgage out and spend, mainly on imports. That unbalances the economy too. We are not like Japan atall and have a very small manufacturing base now.

In 1980, you could buy a very good house in many parts of the country for £30k.

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Apparently...

Though I can't explain that one.

Cheaper football fields??? :unsure:

Germany plays more as a team.. in football and in working environments. Not so many individual egos.

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Guest sillybear2

Nah... Japan isn't any cheaper than UK and yet they are a manufacturing powerhouse...

I dunno, they're being undercut by Taiwan and China and it causes them great concern.

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Guest sillybear2

The figures in the budget didn't look too promising and surely they'd be on the optimistic side?

The North Sea is way off its peak, even find a new whale of a field doesn't change that trend :-

article-0-0A3F70B7000005DC-419_468x568.jpg

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It's only a problem for the banks if

  1. There's a HPC
  2. They repossess and have to realise the falls

Otherwise, the banks are fine - it's the borrowers who take the knock. Or have I missed something?

Other risks such as exposure (direct and indirect) to EZ sovereign debt. I doubt very much if debt-deflationary troubles will come singly ;)

("indirect" meaning UK loans to French/German/other banks who hold even more EZ sovereign debt, rather than UK loans to the countries themselves).

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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