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zugzwang

Fls Extension Announcement Tomorrow

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It's official, sports fans. BoE tweeted this afternoon:

Bank of England Following embargo breach by Reuters, Bank confirms 6am (BST) announcement tomorrow on Funding for Lending Scheme (FLS)

Mark Carney, the incoming Bank of England Governor, revealed that “a number of central banks around the world are looking at [the FLS] and looking to emulate aspects of it”. :lol:

Perfectly timed to distract attention from the triple-dip confirmation that's coming on Thursday. B)

http://www.telegraph.co.uk/finance/economics/10012840/BoE-to-expand-funding-for-lending-to-aid-small-businesses.html

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It's official, sports fans. BoE tweeted this afternoon:

Bank of England Following embargo breach by Reuters, Bank confirms 6am (BST) announcement tomorrow on Funding for Lending Scheme (FLS)

Mark Carney, the incoming Bank of England Governor, revealed that "a number of central banks around the world are looking at [the FLS] and looking to emulate aspects of it". :lol:

Perfectly timed to distract attention from the triple-dip confirmation that's coming on Thursday. B)

http://www.telegraph...businesses.html

Shame it's too late for Francis Maude to run around telling everyone to fill cans of petrol to boost sales/gdp.

Whatever happened to him?

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It's official, sports fans. BoE tweeted this afternoon:

Bank of England Following embargo breach by Reuters, Bank confirms 6am (BST) announcement tomorrow on Funding for Lending Scheme (FLS)

Mark Carney, the incoming Bank of England Governor, revealed that “a number of central banks around the world are looking at [the FLS] and looking to emulate aspects of it”. :lol:

Perfectly timed to distract attention from the triple-dip confirmation that's coming on Thursday. B)

http://www.telegraph.co.uk/finance/economics/10012840/BoE-to-expand-funding-for-lending-to-aid-small-businesses.html

Showtime for Carney, he must be delighted at the tools at his disposal.

Will imputed rents save us from a triple dip?

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shocking. they are stealing the savers money much like the cypriots only more underhand, more British.

i see the government borrowed three hundred million less than last year, but still borrowed 120 BILLION POUNDS, that's money you and i and your children need to cover. so much for austerity.

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shocking. they are stealing the savers money much like the cypriots only more underhand, more British.

i see the government borrowed three hundred million less than last year, but still borrowed 120 BILLION POUNDS, that's money you and i and your children need to cover. so much for austerity.

Why don't you vote for someone to stop it?

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shocking. they are stealing the savers money much like the cypriots only more underhand, more British.

i see the government borrowed three hundred million less than last year, but still borrowed 120 BILLION POUNDS, that's money you and i and your children need to cover. so much for austerity.

They want us to spend but it is not in our interest to do so, so we must tough it out.

I've been putting a lot of effort into obtaining the best available rates and now average about 3.25% gross. Down on last year, but not too bad in the current climate and most of it is fixed for at least a year. Having done all I can at the moment, I'm off to France for three or four months to spend some Euros :D.

The more they try to make me spend it, the more determined I become not to.

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Isn't this a case of pushing on a piece of string ?

No matter what they do they can't force lending. Each time they come up with a new scheme the deals for new entrants just get better don't they ?

So ... for getting a mortgage alright you may not have the hpc, but the amount you have to pay in interest has reduced considerably.

Me, I'm going to wait. I reckon there are going to be some huge deals somewhere down the line. They must be crapping themselves at the way lending isn't expanding at the moment.

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shocking. they are stealing the savers money much like the cypriots only more underhand, more British.

i see the government borrowed three hundred million less than last year, but still borrowed 120 BILLION POUNDS, that's money you and i and your children need to cover. so much for austerity.

When what you have been saving is other peoples debt, how do you expect your savings to increase without others taking on more debt. You should be happy if there is another 120bn to save - go chase it.

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Carney ensured that 'housing' made up 27% of Canadian GDP which given Canada is a resource rich nation is unbelievable, and he also got debt up to higher levels than the USA. Not surprisingly (got to admire the timing) the Canadian property market is collapsing just as Carnage is leaving.

Carnage has all to tools to generate HPI (NewBuy, HelptoBuy, FLS, SMI, QE, ZIRP etc) and HPI increases imputed rents and this provides the holy grail of GDP growth. A 25 % growth in property prices will add 2% in GDP and this is the only way the GDP will grow .... down the line the whole thing will collapse but they don't care about that.

Imputed rent calculations are not quite as straightforward as a straight correlation with HPI, mortgages or rents for that matter. It's a thoroughly opaque concoction of a 'quality factor' (subject to upwards-only revisions), the overall number of owner-occupied houses, and some determination of the benefit derived from it. If it were as simple as something which tracked prices, it could not explain the huge increase in UK imputed rents since 2007, when selling prices have fallen in the interim and the stock of houses from which imputed rents are derived has actually fallen too. In short, it looks well dodgy. Carney's aims over here will doubtless be similar to his actions in Canada, but its effect on imputed rents is not as straightforward as it seems. Not that it matters much, as HPI is the main thing they are aiming at in any case.

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I've been putting a lot of effort into obtaining the best available rates and now average about 3.25% gross. Down on last year, but not too bad in the current climate and most of it is fixed for at least a year.

Hi Bruce,

Any chance of some info on where to get these good rates?? Thanks!! :)

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You are right about how imputed rent is calculated ... as a % of GDP it only increases. From 2008 to 2011 imputed rent increased from 6% to 8% of GDP, imputed rent has never fallen as a % of GDP since 89 when it was just 4% of GDP, even in the recessions of the 90 and even now with no GDP growth imputed rent is still soaring (as the Excess would say).

Since 2007, imputed rents have accounted for about a quarter of nominal GDP growth, without an obvious explanation as to why. They've risen from (IIRC) ~£80Bn in 2007 to ~£120Bn in the last full year's data, following the proportions of overall GDP you quote. This is from a broadly similar number of owner-occupied houses. Neither rents, house prices or mortgages have done likewise, or even come close to that. It requires explanation since it looks like an error which has convenient political ramifications.

Edited by cheeznbreed

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Hi Bruce,

Any chance of some info on where to get these good rates?? Thanks!! :)

NS&I 3.9% Guaranteed Growth Bond fixed (three years to run) instant access with 3 months loss of interest.

Santander 4% ISA fixed (one year to run).

Santander 3% ISA fixed (two years to run).

Virgin Money e saver, variable, currently 2.4% (existing customers only) instant access.

Leeds BS 1 year fixed rate bond (issue 130) 2.45% (available for a week earlier this month).

Unfortunately, the only one you can get now is the Santander 3% ISA, but there are various accounts at around 2.25% that become available for short periods if you keep your eyes open.

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NS&I 3.9% Guaranteed Growth Bond fixed (three years to run) instant access with 3 months loss of interest.

Santander 4% ISA fixed (one year to run).

Santander 3% ISA fixed (two years to run).

Virgin Money e saver, variable, currently 2.4% (existing customers only) instant access.

Leeds BS 1 year fixed rate bond (issue 130) 2.45% (available for a week earlier this month).

Unfortunately, the only one you can get now is the Santander 3% ISA, but there are various accounts at around 2.25% that become available for short periods if you keep your eyes open.

...but what are you intending to do when your existing fixed rates end?.........spend less to make up for it, reducing your own inflation rate or invest into something with far better potential like a good business? ;)

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...but what are you intending to do when your existing fixed rates end?.........spend less to make up for it, reducing your own inflation rate or invest into something with far better potential like a good business? ;)

That will depend on what is available at the time. On thing is certain though, I'd rather earn zero interest than have my money locked into an illiquid, depreciating, asset.

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That will depend on what is available at the time. On thing is certain though, I'd rather earn zero interest than have my money locked into an illiquid, depreciating, asset.

Well I knew that option that was totally out of the question. ;)

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FLS = Funding for Santander Scheme

People ought to understand by now that banksters paying sportsmen/women to sell abnormally high savings rates (3% for example) is a mega contra-indicator.

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  • 238 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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