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Saving For a Space Ship

Credit Crunch Consequences 3 Yrs After The Crisis

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Happy

for monday !

http://www.guardian.co.uk/business/2010/aug/08/credit-crunch-analysis

It was supposed to have been the day the world changed. The credit crunch "officially" began on 9 August 2007, and there were plenty ready to dance on the grave of capitalism and the free markets. But three years on, for all the hand-wringing, the economic upheaval and the promises of politicians, there is a whiff of business as usual in the air. The banks have returned to substantial profit, City bonuses are moving back to dizzying heights, international efforts for further co-operation have largely come unstuck, cranes are once more rising over the Square Mile and house prices are moving north.

Many are beginning to question whether anything has really changed at all; others maintain that things have simply got worse, that the old hegemony has been reinforced rather than loosened, widening the disparity between the wealthy and the rest.

Getting a mortgage has been put out of the reach of many people, savings are dwindling, high streets have become bleaker places and the expansion of public sector debt, partly to keep the world from plunging into a depression, means there will only be more painful austerity measures to come, affecting everything from arts funding to welfare. Politically, the shift has been to the right, particularly in Britain.

"Money was virtually free – in the case of Japan, where it had zero interest rates, it was literally free – and it was available in limitless quantities, which does not correspond to any definition of normalcy, so that created a bubble and bubbles burst.".....

.............Capital, though, is still broadly in the same hands: "You have the same people making the most money, doing broadly the same thing, but – we hope – more sensibly and prudently," says Gieve.

Edited by Saving For a Space Ship

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All such a LIE......

House prices are not going "north"...... They're sinking like a brick in a pond --- and this article is YET ANOTHER pile of HOGSH1T - stuck in this newspaper by a bunch of PR/VI C*NTS. :angry:

Wow, extreme reaction, Mr Pebble. As usual you are COMPLETELY RIGHT

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All such a LIE......

House prices are not going "north"...... They're sinking like a brick in a pond --- and this article is YET ANOTHER pile of HOGSH1T - stuck in this newspaper by a bunch of PR/VI C*NTS. :angry:

I disagree - the house price line is wrong obviously, but the general sentiment of the article has some merit.

Home ownership is probably further out of reach for the man in the street due to mortgage availability, public services and welfare will get hammered, unemployment continues to increase... But at the same time, the banks, the landowners, the CEOs, and the richest few percent are doing better than they ever were!

Events of the last few years don't seem to have equalised things at all, and if we fall back into the old status quo now then we're locking in more disparity and storing up bigger problems for the future.

Edited by Kyoto

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Wow, extreme reaction, Mr Pebble. As usual you are COMPLETELY 'RIGHT'

"Fascism is extreme far right - whereas Marxism is at the opposite end of the scale."

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"Fascism is extreme far right - whereas Marxism is at the opposite end of the scale."

Are not Fascism and Marxism but two sides of the same coin?

Edited by Cicero

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Are not Fascism and Marxism but two sides of the same coin?

Indeed they are. I wrote an undergraduate dissertation on the similarities of capitalism (especially of the Anglo-Saxon variety) and Communists*. Ruffled a few Marxist feathers and had to get it moderated as they'd never had anyone in the history of the Uni who had gone down this track.

* Look at how many 'Neo-Cons' are ex Marxists. Indeed my great uncle fought against Franco then became one of Mrs. T's most trusted advisors!

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I am sorry to say this, but if you followed this website posters advice and put off buying a home up until 2008 then you have missed the boat. I admit property prices were hight but at least you could borrow. Now your ******ed. It sorry for you and property heavon for me.

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In the year of the credit crunch, 2007, the bank's crucial tier one ratio – a measure of its financial health – was 4.7%. Today it is 10%, showing that the bank is holding a larger capital cushion to support its business. In the same period, the bank's leverage has fallen from 33% to 20% of that tier one capital, and the amount of liquid assets it holds – such as government bonds – has jumped from £20bn in the year of the credit crunch to £160bn now.

I can't get my head around the bold bit, can anyone explain what it means?

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All such a LIE......

House prices are not going "north"...... They're sinking like a brick in a pond --- and this article is YET ANOTHER pile of HOGSH1T - stuck in this newspaper by a bunch of PR/VI C*NTS. :angry:

Please tell me when they will sink and whether it will be inflationary falls or sterling denominated falls.

Everytime there is a good chance house prices are about to fall under their own weight the government intervenes at the expense of the prudent que the current situation.

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Please tell me when they will sink and whether it will be inflationary falls or sterling denominated falls.

Everytime there is a good chance house prices are about to fall under their own weight the government intervenes at the expense of the prudent que the current situation.

It's either going to take 20 years - via inflation etc. - Or it will happen quickly. Your guess is as good as anyone's. I agree - the VI's have made a very good job of stalling the fall -- as I predicted they would. And they will fight on! :rolleyes:

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I am sorry to say this, but if you followed this website posters advice and put off buying a home up until 2008 then you have missed the boat. I admit property prices were hight but at least you could borrow. Now your ******ed. It sorry for you and property heavon for me.

Trying to read through the typos here I think the gist is "2008 was the best time to buy".

I'll save your post to my list of predictions, and let's see in a few years' time if history judges it correct.

You might be right, of course. But my personal opinion is the prediction is more likely to join the ranks of those below:

I reckon the big new story for 2009 will be the tanking of the bond market in the UK and the USA (UK in particular as not reserve currency) .

the euro to be 1=£1.15 + by the end of march 2009..

we will see it [the FTSE 100] below 1000 possibly around beginning 2010 if not before

I like people who are prepared to make a proper prediction (one with both an outcome AND a timescale, rather than just the unprovable "house prices to fall 50%" or "we're screwed") but it's important to watch to see if they come true :lol:

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  • 150 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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