apom Posted September 26, 2005 Share Posted September 26, 2005 Imagine there was a world where we could all buy at peak. If we were prepared to.. forget that we couldn't manage the repayments.. £1,100,000,000,000 currently.. now pan forward a decade.. First time buyers are back.. we all have debts two to three times what they would be at normal cost.. How much would the countries debt be.. We have a limited number of people buying at peak.. Now make that unlimited and not over 7 years.. But everyone.. over 17 years.. Mortgage debt =? personal debt =? Can anyone work this out? imagine the economy then.. What I am trying to say. Is that for house prices not to come down personal debt that is already crippling the economy would have to increase by what I would expect to be many multiples. Can anyone work out some sort of expected figures for this theory? We are seeing the economy buckling under the current debt levels.. If house prices do not come down then many.. many more would have to enter into massive debt... Economically is this possible for the economy? Quote Link to comment Share on other sites More sharing options...
Gwailo Posted September 26, 2005 Share Posted September 26, 2005 Imagine there was a world where we could all buy at peak.If we were prepared to.. forget that we couldn't manage the repayments.. £1,100,000,000,000 currently.. now pan forward a decade.. First time buyers are back.. we all have debts two to three times what they would be at normal cost.. How much would the countries debt be.. We have a limited number of people buying at peak.. Now make that unlimited and not over 7 years.. But everyone.. over 17 years.. Mortgage debt =? personal debt =? Can anyone work this out? imagine the economy then.. What I am trying to say. Is that for house prices not to come down personal debt that is already crippling the economy would have to increase by what I would expect to be many multiples. Can anyone work out some sort of expected figures for this theory? We are seeing the economy buckling under the current debt levels.. If house prices do not come down then many.. many more would have to enter into massive debt... Economically is this possible for the economy? I shouldn't think so? It is possible, however, for the various Central Banks of the Western World to conspire to 'Inflate' their way out of the massive debts they have built up. This could lead to massive prices in Sterling for property, although they would really only be worth 50 RMB. Cheers. Quote Link to comment Share on other sites More sharing options...
Once Bitten x2 Shy Posted September 26, 2005 Share Posted September 26, 2005 Imagine there was a world where we could all buy at peak.If we were prepared to.. forget that we couldn't manage the repayments.. £1,100,000,000,000 currently.. now pan forward a decade.. First time buyers are back.. we all have debts two to three times what they would be at normal cost.. How much would the countries debt be.. We have a limited number of people buying at peak.. Now make that unlimited and not over 7 years.. But everyone.. over 17 years.. Mortgage debt =? personal debt =? Can anyone work this out? imagine the economy then.. What I am trying to say. Is that for house prices not to come down personal debt that is already crippling the economy would have to increase by what I would expect to be many multiples. Can anyone work out some sort of expected figures for this theory? We are seeing the economy buckling under the current debt levels.. If house prices do not come down then many.. many more would have to enter into massive debt... Economically is this possible for the economy? Don't know about going forward, but this where we have come from since 1997! http://www.sky.com/skynews/xml/article/0,,...7496060,00.html Quote Link to comment Share on other sites More sharing options...
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