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Michael Coogan Claims Help To Buy Will Fail

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Lets hope!

The problem i can see now is that irrational attitudes (plebs i know are all talking property up again) coupled with govt money to buy will lead to another increase in prices when we haven't had the bust that we all know should have happened by now if the market forces loving government had let market forces do their work!!

There is one potential saving grace now and that's interest rates. I remember from my uni days studying economics we were always told that nobody had ever developed a reliable long term model to predict interest rates they were always to prone to unforeseen fluctuations. The govt cannot manipulate interest rates low forever the last few years is already a record their luck is bound to run out soon and when it does even IR at 3-5% will bring the whole house market nonsense down

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Lets hope!

The problem i can see now is that irrational attitudes (plebs i know are all talking property up again) coupled with govt money to buy will lead to another increase in prices when we haven't had the bust that we all know should have happened by now if the market forces loving government had let market forces do their work!!

There is one potential saving grace now and that's interest rates. I remember from my uni days studying economics we were always told that nobody had ever developed a reliable long term model to predict interest rates they were always to prone to unforeseen fluctuations. The govt cannot manipulate interest rates low forever the last few years is already a record their luck is bound to run out soon and when it does even IR at 3-5% will bring the whole house market nonsense down

Sorry to say that I disagree. The government can manipulate interest rates forever and keep them low.

What they can't do is stop the consequences of that, which would be the pound losing value and significant inflation. But they might decide (indeed they may have already decided) that that's OK.

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When interest rates do go up and we have to follow those countries that have actually had a property crash, we will be going nowhere mired in the quagmire of not dealing with the property price bubble; worse, our rulers deciding that they must prop them up regardless - with money we don't have!

Madness.

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When interest rates do go up and we have to follow those countries that have actually had a property crash, we will be going nowhere mired in the quagmire of not dealing with the property price bubble; worse, our rulers deciding that they must prop them up regardless - with money we don't have!

Madness.

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Sorry to say that I disagree. The government can manipulate interest rates forever and keep them low.

What they can't do is stop the consequences of that, which would be the pound losing value and significant inflation. But they might decide (indeed they may have already decided) that that's OK.

Interest rates maybe, the cost of borrowing no.

They have decided it is ok though, the economy can be sacrificed to save the economy, apparently. And banks must lend irresponsibly to keep the bubble inflated but must also not lend irresponsibly.

You see it's all been well thought out, we're in safe hands.

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someone remind me, what are the interest rates of the Spanish, Portugese, Greek and Cypriot central banks?

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The Government has not confirmed how much it will charge lenders for the guarantee.Coogan says the cost of the guarantees may put lenders off signing up for the scheme while borrowers may also be dissuaded if the cost of the guarantee is passed on through higher mortgage rates.

Of course this is the crux of it and given the hammering he's taken from the media, economists, the treasury select committee etc., what began as an incredibly risky economic gamble has also become an incredibly risky political gamble.

Fortunately for the Gidiot, he has an out by simply pricing the guarantees too high and so would take credit for attempting to 'help' the housing market without actually doing anything and avoiding a blatant u-turn in the process.

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  • 246 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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