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gruffydd

Britain No Longer Having A Nice Time

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People are waking up to the reality that without the housing boom and unsustainable consumer spending fueled by debt, the UK economy is a lame duck.

It's taken a long time...

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Mods - can we merge this and Gryyfyds other thread? They're about the same article and it would be good to build up a critical mass on this one, it's quite interested, cheers

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Two factors are thought likely to stay the MPC's hand. The first is that there is some evidence the Bank has managed to pull off a soft landing for the housing market which, after weakening steadily for the past 15 months, is now showing tentative signs of stabilising. Mortgage approvals have started to pick up, even though house-price inflation is still falling.

I thought the BoE didn't target asset prices. <_<

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Mods - can we merge this and Gryyfyds other thread? They're about the same article and it would be good to build up a critical mass on this one, it's quite interested, cheers

they will ger out of this mess the same way they got out of the economic mess building up before March 2003. they will start another war. it worked last time so they will try it again.

for those who say war is OT they are very wrong.,

the new Labour deal is a package, accept some of it and you have to accept it all.

the package includes war , house price inflation and plentiful immigration to keep labour competitive at the low end of the market.

they are all inter-connected strands of the new Labour tapestry.

just when you think its about to unravel - as it looked in late 2002 - they pull another rabbit out of the hat.

they WILL NOT let this unravel without a bitter fight . who they pick that fight with is looking increasingly likely to be Iran.

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Guest Charlie The Tramp
Mods - can we merge this and Gryyfyds other thread? They're about the same article and it would be good to build up a critical mass on this one, it's quite interested, cheers

If gruffydd agrees it will be done, but the end result is a little messy.

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I thought the BoE didn't target asset prices. <_<

You thought wrong. "The Bank’s monetary policy objective is to deliver price stability – low inflation – and, subject to that, to support the Government’s economic objectives including those for growth and employment." Since house prices have a significant effect on growth and thus employment, the Bank takes a keen interest in them.

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Since house prices have a significant effect on growth and thus employment, the Bank takes a keen interest in them.

The BoE loves graphs, just like we do. They must know that the housing market is cyclical if they'd bothered to look at graph of Real house prices.

They should just let prices correct themselves and let's just get on with trying to make Britain tick over without relying on house prices.

It is the most pathetic economic management, which has let a modern economy survive purely because of a housing bubble.

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"Two factors are thought likely to stay the MPC's hand. The first is that there is some evidence the Bank has managed to pull off a soft landing for the housing market which, after weakening steadily for the past 15 months, is now showing tentative signs of stabilising. Mortgage approvals have started to pick up, even though house-price inflation is still falling."

'The housing market has been 'weakening steadily'. So not falling then just going up a bit less dramatically than before.

'House price inflation is still falling'. We don't have house price inflation - we have deflation. When house prices go up they don't say deflation is weakening do they!?

Gets me every time!!! Argh!!

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You thought wrong. "The Bank’s monetary policy objective is to deliver price stability – low inflation – and, subject to that, to support the Government’s economic objectives including those for growth and employment." Since house prices have a significant effect on growth and thus employment, the Bank takes a keen interest in them.

they didn't seem to take an interest in them when they were forming a bubble

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  • 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%



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