Jump to content
House Price Crash Forum
Sign in to follow this  
Pluto

What's Up With Sterling?

Recommended Posts

The British economy is in the crapper and the lunatics at the BoE cut interest rates while Greenspan was raising his.... we're likely to continue to be weak against the dollar until the US bubble bursts too or the BoE get their heads screwed on and join the rest of the world in raising rates.

Share this post


Link to post
Share on other sites

Possibly the news on a minor readjustment of the Yuan;

http://news.bbc.co.uk/1/hi/business/4274658.stm

Sterling is one of the currencies it has more scope to increase value against. Not good for inflation prospects seeing at the only things seemingly left in the CPI basket are CD's, DVD players and hamster food.

Edited by DoubleBubbleTrouble

Share this post


Link to post
Share on other sites

Is it related to the relative position of each country in the cycle. UK being a bit further along the road towards HPC and its related recession? US HPs still booming, lots of MEWing and apparently healthier economy?

How is the pound doing against the ozzie dollar?

Share this post


Link to post
Share on other sites
Is it related to the relative position of each country in the cycle. UK being a bit further along the road towards HPC and its related recession?

Agreed. Also the resource-based currencies like the Australian and Canadian dollars are still going up as prices rise.

Love Canada, but now watching our GBP dwindle

But think how much more you'll have in sterling if you do decide to come back :).

I just wish there wasn't such a damn long wait for visas so I could have been over there last year... I'm glad I got most of my money out near $2.20.

Share this post


Link to post
Share on other sites

Foreign investors who ploughed in at the top of this bubble stand to get caned.

30-50% on the capital and another what 10/20/30% + on currency if they are unlucky - kiss goodbye to your assets territory.

Share this post


Link to post
Share on other sites

A weaker pound means that Chinese DVD player and Microwave is going to more expensive. Geeze they are going to really hunt around to find stuff that's cheap to keep the inflation under 3%.

They really are in a pickle. "To Raise or Not to Raise (interest rates), that is the real question" Naw.... I think they'll reduce them by 1/2 % just to keep the BTL'ers and Home owners happy for a few more weeks.

Job loses are becoming an everyday event. Who's going to buying houses even a 0% interest!!!

Share this post


Link to post
Share on other sites
A weaker pound means that Chinese DVD player and Microwave is going to more expensive.  Geeze they are going to really hunt around to find stuff that's cheap to keep the inflation under 3%. 

They really are in a pickle.  "To Raise or Not to Raise (interest rates), that is the real question" Naw.... I think they'll reduce them by 1/2 % just to keep the BTL'ers and Home owners happy for a few more weeks.

Indeed, the MPC only have a mandate to deal with inflation, that's their only objective, the housing market or even growth figures are not their concern.

When they were cutting rates like stupid two years ago despite the housing market going off like a friday night in Belfast they boldy stated that the 'housing market is not part of our mandate' along with 'there doesn't appear to be a bubble, etc'

Shame they don't follow the same logic on the way down.

Share this post


Link to post
Share on other sites

Another possibility is that people are expecting a rally after the hurricane and they're starting this one early... even before it hits :).

Edited by MarkG

Share this post


Link to post
Share on other sites
it's been lower than now before and I think the long term avg is 1.6 dollars

Indeed and I believe that is where it is headed. If confidence in the UK economy wobbles at the same time that growth prospects are seen in Germany and Japan, we could see further weakening. What really matters is how is sterling doing against the yuan and against a barrel of crude.

Share this post


Link to post
Share on other sites
What really matters is how is sterling doing against .. snip...  a barrel of crude.

i.e. the US dollar... against which it's sinking fast.

Share this post


Link to post
Share on other sites

Looks like Sterling in a another free fall. The money markets don't like GB's flippent attitude towards the incredible debt everyone has and the way he dismisses the bubble as a non event.

Share this post


Link to post
Share on other sites
High oil price, low pound against the dollar. Looks like inflationary pressures are building in tandem again. Thank GB.

IR's up soon then. :)

It's different this time. :rolleyes:

Share this post


Link to post
Share on other sites
Possibly the news on a minor readjustment of the Yuan;

http://news.bbc.co.uk/1/hi/business/4274658.stm

Sterling is one of the currencies it has more scope to increase value against. Not good for inflation prospects seeing at the only things seemingly left in the CPI basket are CD's, DVD players and hamster food.

I walked into Tesco's on Sunday and was quite surprised to see a DVD player for sale for £22. They'll be cheaper than a packet of fags soon.

Wonder if the Chinese person that made it can afford one? I can afford one in every room in the house. There is some weird imbalance in the global economy. There always has been to some extent, but it's getting nuts now.

Share this post


Link to post
Share on other sites

When i was on holiday in greece we made friends with the viatnamese guy that ran the chinese resterant in the hotel! He invited us back to his house and cooked for us.... Anyway he started showing off about his tabacco he gets his wife sends to him. It costs 0.20 euros for a KG of tabbacco, but he has to pay 8.00 Euros Tax on it.

Talk about global imbalance....

Edited by moosetea

Share this post


Link to post
Share on other sites
Out of interest, every 1% off sterling is (of course) 1% off the real value of your house. It's one of the ways bubbles in other markets have been dealt with in the past.

Durch,

Very good point had not thought about it! That should encourage the foreign investors to start off loading their UK Realestate investments!

Oh goody! Bring it on. :D

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

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.