Mark Carney Set For Interest Rate Promise To Lift Economy

[winkie]

Yes, this is what I thought yesterday. IMPO IRs are not going up for a generation.

In fact, now the banksters know they have gotten away with it I suspect and introducing charges for our banking is the next step. ZIRP and charges.

Yes...charges for banking will be next........then it will be charges to hold savings.

[heffsta]

I take some crumb of comfort that everyone is talking "bubbles". It might just sink into the nations psyche and make people be wary and think.

That is with my positive stance. I must admit that I am feeling fairly gloomy today. It feels that you need to borrow money to succeed in this country - although of course it is not success, it is a charade.

Until very recently, I was angry for those I saw being cynically sucked by their government into a lifetime of debt through overpaying for a house through HTB - but **** 'em. Having visited a Taylor Wimpy new build estate and looking around the show home at the weekend (out of curiosity) - that was priced at £450k - I feel that any purchaser deserves what they get if that is their idea of either value or success in life.

But certainly, this morning I despair.

My wife and I went to look at Linden built homes on a really nice development. All looked good until we walked into them. Tiny spaces terrible build quality and paper thin walls. I even caught them out in the show home, there was a "double" bed in the room. I had my tape measure with me and measured it, it was one of the one and a half type beds not a full double. I called her out on it, she denied it and said it was a double.

I asked how negotiable they were on the price, and she said not at all, they would consider helping out on stamp duty only. Luckily my wife is now even more against buying a house than I am now. She says renting is fine with her as we live in a nice place, no issues and get things fixed when needed.

I got a call yesterday from the sales women to discuss further incentives to buy, I politely declined.

[winkie]

My wife and I went to look at Linden built homes on a really nice development. All looked good until we walked into them. Tiny spaces terrible build quality and paper thin walls. I even caught them out in the show home, there was a "double" bed in the room. I had my tape measure with me and measured it, it was one of the one and a half type beds not a full double. I called her out on it, she denied it and said it was a double.

I asked how negotiable they were on the price, and she said not at all, they would consider helping out on stamp duty only. Luckily my wife is now even more against buying a house than I am now. She says renting is fine with her as we live in a nice place, no issues and get things fixed when needed.

I got a call yesterday from the sales women to discuss further incentives to buy, I politely declined.

Well done you.....buying a bad house is like renting from a bad landlord.

[interestrateripoff]

http://www.bbc.co.uk/news/business-23611955

New Bank of England Governor Mark Carney has said that his new regime will boost the UK's economic growth.

He told the BBC that keeping interest rates at the current level until unemployment fell below 7% was expected to boost the economy by "more than half a percentage point of GDP".

But he warned that this prediction should be taken "with a grain of salt".

He also told the Today programme it was "striking" that there were no women on the Monetary Policy Committee (MPC).

FFS is this the quality we now have running the bank.

So he fully expects 0.5% interest rates to boost growth, we've had them now for years and it's not boosted growth now suddenly it will!

[The Masked Tulip]

http://www.bbc.co.uk/news/business-23611955

FFS is this the quality we now have running the bank.

So he fully expects 0.5% interest rates to boost growth, we've had them now for years and it's not boosted growth now suddenly it will!

As I posted yesterday - IMPO he is a one trick pony and will simply try to repeat the massive housing bubble that he created in Canada.

In 5 years time he will move on with his fat salary, pension and having had 5 years living in London at the British tax-payers' expense.

[The Knimbies who say No]

My wife and I went to look at Linden built homes on a really nice development. All looked good until we walked into them. Tiny spaces terrible build quality and paper thin walls. I even caught them out in the show home, there was a "double" bed in the room. I had my tape measure with me and measured it, it was one of the one and a half type beds not a full double. I called her out on it, she denied it and said it was a double.

I asked how negotiable they were on the price, and she said not at all, they would consider helping out on stamp duty only. Luckily my wife is now even more against buying a house than I am now. She says renting is fine with her as we live in a nice place, no issues and get things fixed when needed.

I got a call yesterday from the sales women to discuss further incentives to buy, I politely declined.

Fair play, any idea what 'further incentives to buy' meant? Carpets and curtains?

[winkie]

"There's no earthly way of knowing

Which direction we are going.

There's no knowing where we're rowing

Or which way the river's flowing.

Is it raining?

Is it snowing?

Is a hurricane a blowing?

Not a speck of light is showing

so the danger must be growing.

Are the fires of hell a glowing?

Is the grisly reaper mowing?

Yes! The danger must be growing

For the rowers keep on rowing.

And they're certainly not showing

any signs that they are slowing!"

[dances with sheeple]

Well done you.....buying a bad house is like renting from a bad landlord.

Worse, it is easy to walk from a bad landlord.

[winkie]

Worse, it is easy to walk from a bad landlord.

Yes....and who would want to buy a bad house without a 20% discount?

[dances with sheeple]

As I posted yesterday - IMPO he is a one trick pony and will simply try to repeat the massive housing bubble that he created in Canada.

In 5 years time he will move on with his fat salary, pension and having had 5 years living in London at the British tax-payers' expense.

That was done during the biggest global credit bubble ever, a one off experiment in feeding the masses credit, really can`t see him pulling that off again, and probably neither can he

they are just trying to keep the music going a bit longer, trouble is, the piano player has had a stroke and most of the kids playing pass the parcel have had more than enough jelly

Edited August 8, 2013 by dances with sheeple

[dances with sheeple]

Yes....and who would want to buy a bad house without a 20% discount?

For Edinburgh prices I would need 50% discount, at least.

[winkie]

For Edinburgh prices I would need 50% discount, at least.

[dances with sheeple]

George (or rather the taxpayer) is providing funds for a 20% price increase and FLS allows people to pay more as mortgages are more affordable.

But, the scheme hasn`t started yet, and maybe never will? And I don`t think UK government alone can compete with the previous global securitized loans Ponzi, we will be downgraded long before this has any effect. When rates go up in the US it is game over here.

[The Masked Tulip]

But, the scheme hasn`t started yet, and maybe never will? And I don`t think UK government alone can compete with the previous global securitized loans Ponzi, we will be downgraded long before this has any effect. When rates go up in the US it is game over here.

Bernanke is not going to do it and his likely successor is more in favour of ZIRP and QE than he is.

[Venger]

Until very recently, I was angry for those I saw being cynically sucked by their government into a lifetime of debt through overpaying for a house through HTB - but **** 'em. Having visited a Taylor Wimpy new build estate and looking around the show home at the weekend (out of curiosity) - that was priced at £450k - I feel that any purchaser deserves what they get if that is their idea of either value or success in life.

But certainly, this morning I despair.

Don't understand how anyone can have a sliver of sympathy for such buyers. They're probably, as often has been the case, are paying 2 or even 3 times what I would think their house is worth. That's their own decision. £450,000 for a Taylor Wimpey house on a newbuild estate. Wouldn't care if it's in London. Does not add up to me. Too few people earning the type of money to comfortably pay for that, even with savings.

There can be 'no hope' for many of us hoping to afford homes at a price we think represents value for our families, until the flow of buyers able and willing to but at such prices dries up. Hopefully HTB2 won't catch for long, with only a limited number of buyers or upsizers willing to take on the extra 'help' debt.

When prices do slide back, I hope the forum doesn't become obsessed by these victim buyers again, blaming authorities for them believing house prices only go up, demand greater than supply, small island, media made them overborrow and renting is dead money nonsense. Lobbying for more reflation.

Nothing to really despair about, apart from those who prefer to put the over-indebted and thus outright owners, second-home owners, and landlords infront of their own need to afford a house without massive debt. Many sectors slowing or on edge of doing so, including law, and UK can't stand alone, defending high house prices, in a world that's develevaging.

[The Masked Tulip]

Many sectors slowing or on edge of doing so, including law, and UK can't stand alone, defending high house prices, in a world that's develevaging.

Can you expand on this please? Do you work in the legal field? Can you tell us what things are like and what the problem is? Removal of legal aid for many cases?

[Venger]

Can you expand on this please? Do you work in the legal field? Can you tell us what things are like and what the problem is? Removal of legal aid for many cases?

I don't work in law, but two of the people closest to me do, in my family. In their early 30s, solicitors and associate solicitors, none of whom own a home.

Legal Aid cuts, which the reaction to some solicitors recently were to challenge as 'illegal'. Jackson reforms. ABAs a new challenge to law firms, as I understand it, with less regulation / compliance stuff to that of a law firm (not entirely sure), but certainly a challenge to established law firms. It all looks quite fragile out there to me, no matter how politicians and the press hail a 0..3% rise in anything one month to the next.

Begbies-Traynor

July 15, 2013

"However this improvement is by no means a uniform picture, with the legal sector under particular pressure following a raft of high profile insolvencies within the industry. Recently the Solicitors Regulation Authority reported that 160 legal practices are under intensive supervision, including 30 of the UK's top 200 legal practices. Meanwhile, as a result of the implications of the new Alternative Business Structures and further reductions in legal spend budgets we expect to see further consolidation as high street, middle tier and some large regional practices look increasingly vulnerable."

Consumer-facing sectors still struggling

The sectors most dependent on consumers' disposable income including hotels, bars & restaurants and general retail were the industries that saw some of the largest quarter on quarter increases in 'Critical' distress, rising 39%, 27% and 7% respectively.

http://www.begbies-t...l_distress.aspx

[The Masked Tulip]

I don't work in law, but two of the people closest to me do, in my family. In their early 30s, solicitors and associate solicitors, none of whom own a home.

Legal Aid cuts, which the reaction to some solicitors recently were to challenge as 'illegal'. Jackson reforms. ABAs a new challenge to law firms, as I understand it, with less regulation / compliance stuff to that of a law firm (not entirely sure), but certainly a challenge to established law firms. It all looks quite fragile out there to me, no matter how politicians and the press hail a 0..3% rise in anything one month to the next.

Begbies-Traynor

July 15, 2013

Thank you.

[zugzwang]

But, the scheme hasn`t started yet, and maybe never will? And I don`t think UK government alone can compete with the previous global securitized loans Ponzi, we will be downgraded long before this has any effect. When rates go up in the US it is game over here.

The Equity Loan part of Help To Buy started on April 1st, 2013. The Mortgage Guarantee scheme begins on January 1st, 2014. All the lenders will have factored these subsidies into their lending ambitions for the financial year.

US rates won't go up for years, the US economy is on its knees and likely to stay that way for the forseeable future. QE infinity has to be stopped, however. The financial asset bubbles it has created have begun to menace the entire world.

The UK is bankrupt, of course. Our debts are so colossal that no possible mechanism exists for inflating them away in an orderly fashion. A Third World economy facing a Third World future.

[The Knimbies who say No]

Don't understand how anyone can have a sliver of sympathy for such buyers. They're probably, as often has been the case, are paying 2 or even 3 times what I would think their house is worth. That's their own decision. £450,000 for a Taylor Wimpey house on a newbuild estate. Wouldn't care if it's in London. Does not add up to me. Too few people earning the type of money to comfortably pay for that, even with savings.

There can be 'no hope' for many of us hoping to afford homes at a price we think represents value for our families, until the flow of buyers able and willing to but at such prices dries up. Hopefully HTB2 won't catch for long, with only a limited number of buyers or upsizers willing to take on the extra 'help' debt.

When prices do slide back, I hope the forum doesn't become obsessed by these victim buyers again, blaming authorities for them believing house prices only go up, demand greater than supply, small island, media made them overborrow and renting is dead money nonsense. Lobbying for more reflation.

Nothing to really despair about, apart from those who prefer to put the over-indebted and thus outright owners, second-home owners, and landlords infront of their own need to afford a house without massive debt. Many sectors slowing or on edge of doing so, including law, and UK can't stand alone, defending high house prices, in a world that's develevaging.

I concur with this. I harbour reservations about the unrelenting propaganda being used cynically to hook predominantly young buyers into HTB, but it's so over the top that you'd have to be a bit dim not to realise how desperate they are for aspirant go-getters mugs to sign up. The Twitter stream has a few on there, although encouragingly it seems to have tailed off a bit recently.

Here's a couple of articles recently linked:

http://my4wallsyorks.wordpress.com/2013/08/05/guest-blog-why-buy-a-new-build-house-off-plan/

http://my4wallsyorks.wordpress.com/2013/07/23/financial-advice-for-first-time-buyers/

[The Masked Tulip]

The only two things you need to know about Mark Carney’s revolution

http://moneyweek.com/money-morning-mark-carneys-revolution/

Here’s what the BoE really wants. Britain’s problem is debt – government debt, mortgage debt, consumer credit – you name it, we’re up to our eyeballs in it.

The easiest – or rather, most politically palatable – way to get rid of that debt is to inflate it away. You do that by making sure that the rate of inflation is higher than interest rates. In effect, you steal money from savers to ensure that lenders who made bad decisions don’t go bust.

That’s it. That’s Mark Carney’s job. That’s what he was hired to do.

[heffsta]

Fair play, any idea what 'further incentives to buy' meant? Carpets and curtains?

Full stamp duty paid, carpets and a wardrobe built by their carpenters.

[The Knimbies who say No]

Full stamp duty paid, carpets and a wardrobe built by their carpenters.

Pretty paltry by comparison to the price I guess.

[billybong]

It is now more important than ever for the [bank's] Monetary Policy Committee to be clear and transparent.

More important than the last time it was more important than ever for it to be clear and transparent?

Base rate not to be increased until at least 2016 (and probably for decades after that for real employment rates to improve) and he's paid the best part of a million for that

He might as well go back to Canada now and come back after the election. He'll likely be doing that at any rate.

Edited August 8, 2013 by billybong

[dances with sheeple]

Don't understand how anyone can have a sliver of sympathy for such buyers. They're probably, as often has been the case, are paying 2 or even 3 times what I would think their house is worth. That's their own decision. £450,000 for a Taylor Wimpey house on a newbuild estate. Wouldn't care if it's in London. Does not add up to me. Too few people earning the type of money to comfortably pay for that, even with savings.

There can be 'no hope' for many of us hoping to afford homes at a price we think represents value for our families, until the flow of buyers able and willing to but at such prices dries up. Hopefully HTB2 won't catch for long, with only a limited number of buyers or upsizers willing to take on the extra 'help' debt.

When prices do slide back, I hope the forum doesn't become obsessed by these victim buyers again, blaming authorities for them believing house prices only go up, demand greater than supply, small island, media made them overborrow and renting is dead money nonsense. Lobbying for more reflation.

Nothing to really despair about, apart from those who prefer to put the over-indebted and thus outright owners, second-home owners, and landlords infront of their own need to afford a house without massive debt. Many sectors slowing or on edge of doing so, including law, and UK can't stand alone, defending high house prices, in a world that's develevaging.

Agreed.