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sombreroloco

Economy Figures Set To Show 'positive Growth'

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Housing market up, GDP up, election 2015...................no chance of the government holding back on the housing market incentives now. Short termism is everything when your job depends on it. Maybe they will be looking for even more creative schemes to artificially boost house prices.

Edited by crashmonitor

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The old bag got it right, savings ratio down from 7% to 4%. I wonder where we go from here considering that people in the sand pit can't see it.

Wow! That low! Squeezing out the last drops of blood.

united-kingdom-personal-savings.png

From 1970 - 2000 we have an average of about 7-8%.

We now have a lower percentage of workers who are home owners, who are saving less, terrible pension and with large student debts. Not to mention personal debts (Wonger loans etc.) So they will end up with nothing. No home, no pension and lots of debt. Slaves to the banking industry.

post-33525-0-13967600-1374406121_thumb.png

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Housing market up, GDP up, election 2015...................no chance of the government holding back on the housing market incentives now. Short termism is everything when your job depends on it. Maybe they will be looking for even more creative schemes to artificially boost house prices.

Benny's dropping $110bn on the dealers this month, very little treasury supply to mop that up. Melt-up liquidity conditions for stocks and oil. When Carnage starts up the presses again things should really start flying. China still a wildcard, however.

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The old bag got it right, savings ratio down from 7% to 4%. I wonder where we go from here considering that people in the sand pit can't see it.

So, what's happening to make the savings ratio fall again? Is it people covering every day expenditure or are we going to see a consumer boom?

Edited by oldsport

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So, what's happening to make the savings ratio fall again? Is it people covering every day expenditure or are we going to see a consumer boom?

Err.. Inflation at 3%, wages rising by 1.7%

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Tractor production is up again comrades

At least the communists pretended to be making something useful. Our lot just fiddle the imputed rents.

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Err.. Inflation at 3%, wages rising by 1.7%

That's been the case for the past 5 years but the savings ratio went up a lot. It's only just started to fall again.

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At least the communists pretended to be making something useful. Our lot just fiddle the imputed rents.

you shouldnt mock imputed rents.

It took thousands of Man hours to even think up a name that sounds really technical, but is a measure of nothing at all.

How about imputed eating for the poor....look, that tramp is producing £50 a week on soup and bread he isnt spening on.

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The consumer has reduced his savings ratio very substantially from about 7% a year ago to about 4% now so they are spending their way out of this recession.

Sounds likely consumers reducing savings are only male.

So savers are now spending to safeguard their future - good luck to them with that but they've only got 4% of their savings ratio left to spend.

Edited by billybong

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That's been the case for the past 5 years but the savings ratio went up a lot. It's only just started to fall again.

If you look at the chart above, it seems that when interest rates plummeted, people saved, now real inflation has soaked up that windfall.

Before that savings dropped as house prices rose.

During that 5 years, we were supposed to get decent growth and wage rises,that hasn't happened.

There is now no room for manoeuvre.

If the trend continues people end up in debt and then default.

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That's been the case for the past 5 years but the savings ratio went up a lot. It's only just started to fall again.

Could it be that wages are not the same as bonuses and they in the main have been falling. ;)

Edited by winkie

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If you look at the chart above, it seems that when interest rates plummeted, people saved, now real inflation has soaked up that windfall.

Before that savings dropped as house prices rose.

During that 5 years, we were supposed to get decent growth and wage rises,that hasn't happened.

There is now no room for manoeuvre.

If the trend continues people end up in debt and then default.

So this recent drop in the savings ratio could be a real sign of distress?

Surprised it's not been mentioned much before - it had passed me by, anyway. I'll be keeping an eye on it.

Although net lending is going negative recently - could this also explain why less is being saved now?

Edited by oldsport

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you shouldnt mock imputed rents.

It took thousands of Man hours to even think up a name that sounds really technical, but is a measure of nothing at all.

The strange thing is that it actually seems more honest to fake tractor production figures because it's at least theoretically possible to go and count the tractors. Faking the size of rents which everybody agrees don't exist just seems like cheating at cheating.

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you shouldnt mock imputed rents.

It took thousands of Man hours to even think up a name that sounds really technical, but is a measure of nothing at all.

How about imputed eating for the poor....look, that tramp is producing £50 a week on soup and bread he isnt spening on.

+1

Pretend rents - too obvious. Nobody would buy it.

Apparently imputed means attributed - meaning there's no choice and it's whether anyone likes it or not, a bit like tax but that's imposed.

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Err.. Inflation at 3%, wages rising by 1.7%

The consensus of most economists is that CPI overstates by 1% (indeed some economists go further and argue for 2%) because the index is hopeless at keeping pace with consumers substitution and why you get the paradox of increasing consumption even when inflation adjusted earnings are supposedly falling. The link is US related, but covers this point. Certainly my drawings are not up 25% since 2006, but my consumption is up....so summats wrong.#

http://www.economist.com/blogs/freeexchange/2013/03/divergence-between-cpi-and-pce-prices

Edited by crashmonitor

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So, what's happening to make the savings ratio fall again? Is it people covering every day expenditure or are we going to see a consumer boom?

The propaganda machine is kicking into gear, ordinarally they'd now be saying "well have to tighten our belts" so that the savings rate can get back to 8 or 10%.....but this isn't happening, and the longer they leave it the worse it will get. The tennis will save us perhaps?

I'd guess that the savings ratio will fall to 2% before GO will get the message.

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The propaganda machine is kicking into gear, ordinarally they'd now be saying "well have to tighten our belts" so that the savings rate can get back to 8 or 10%.....but this isn't happening, and the longer they leave it the worse it will get. The tennis will save us perhaps?

I'd guess that the savings ratio will fall to 2% before GO will get the message.

They don't want you to tighten your belts, they want you to spend your savings then beg or borrow to live out any worthwhile years left. ;)

Edit:.....one consolation is, if you ain't got it they can't take it from you only give it to you...maybe that's what they want, their subjects to become dependant, going the right way about promoting it.

Edited by winkie

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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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