TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 The general consensus amongst bank research analysts (ie advice for debt and equity investors) seems to be whatever the govt/press might be saying FLS having minimal impact on banks. I've not read much - if any more - about it, but with Barclay's liabilities at £1.5trn, a total FLS across multiple banks of £90bn seems a drop in the ocean. Also, hasn't only £18bn of it actually been drawn down so far? http://www.growthbusiness.co.uk/news-and-market-deals/business-news/2392553/nationwide-lloyds-barclays-and-virgin-money-lead-the-way-in-funding-for-lending-activity.thtml In that case, how come then the banks are using it as an excuse to suppress savings rates ? If not from the FLS, where are they getting their cheap money from to give out 1.9% mortgages and 1% savings rates ? The current london bubble is build on this £90B money give away. Like the dark days of 2007/2008, this is unsustainable and collapse is...NOW ( most likely tomorrow ). Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 12, 2013 Author Share Posted November 12, 2013 The way I see it, any couple working full time deserve to be able to afford their own roof above their head. Yep when working people can't afford to buy there something seriously wrong with the market. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted November 12, 2013 Share Posted November 12, 2013 From what Ive read of the thread, as regard house prices being too high, and a majority thinking not, is that many are believing the price is the cost of the borrowing. Its all about the monthlies. The Bank of England also view prices in this light. The Government clearly do to. Its not about the price, its about affordability...Hence, a serious fault with the program is the avoidance of interest rates, their 300 year low and the banking scam that people are falling for in many areas of life....financialisation of housing, education, vehicle purchase and insurance. We hear constantly about the lack of mortgages. Of course, if you cant borrow for some reason, then forget saving up for it in this climate...you cant through normal graft compete with a leveraged competitor.... One day, there will be no cash for bailouts....and it will end. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 It's not just housing costs that are too high....living costs are beyond a joke. And with wage rises non going to happen....we need....DEFLATION. Tranfer some (all ) of that wealth from the 1%'s to the 99%'s. Quote Link to comment Share on other sites More sharing options...
slacker Posted November 12, 2013 Share Posted November 12, 2013 Its all about the monthlies. I vividly remember my mum's reaction when I told her interest rates had gone to 15%. She was cooking dinner. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 12, 2013 Author Share Posted November 12, 2013 Its all about the monthlies. Yep most people really don't comprehend the price, just what the monthly payment is. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted November 12, 2013 Share Posted November 12, 2013 I vividly remember my mum's reaction when I told her interest rates had gone to 15%. She was cooking dinner. Carney will keep IRs low for years IMPO. He must be loving all this soaring house prices and rising stock market talk. Makes him look like some financial genius. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 Yep most people really don't comprehend the price, just what the monthly payment is. That was part of the problem in 2004-2006. Rates went down...prices went up. Prices collapsed. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 (edited) Carney will keep IRs low for years IMPO. He must be loving all this soaring house prices and rising stock market talk. Makes him look like some financial genius. He can't be liking all those talk of disastrous house price bubbles and people trying to stop it in it's track. I suspect a lot of this new BUBBLE is based on canny BTL investors ready to make a fortune with this new world paradigm, like they should have the last time if only they'd gone in early. Mostly likely backed by LIAR LENDING. Edited November 12, 2013 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
slacker Posted November 12, 2013 Share Posted November 12, 2013 Carney will keep IRs low for years IMPO. He must be loving all this soaring house prices and rising stock market talk. Makes him look like some financial genius. As the ERM debacle showed, no central bank can protect against a storm-surge in the markets**. ** With the exception of the US in 08/09, but they've shot their wad on that now. Quote Link to comment Share on other sites More sharing options...
shindigger Posted November 12, 2013 Share Posted November 12, 2013 As the ERM debacle showed, no central bank can protect against a storm-surge in the markets**. ** With the exception of the US in 08/09, but they've shot their wad on that now. Clears throat. Holds nose. Crosses fingers. Vote Labour. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 Vote Labour. Maybe we should all have voted labour at the last election....this charade might be over by now. Quote Link to comment Share on other sites More sharing options...
shindigger Posted November 12, 2013 Share Posted November 12, 2013 Maybe we should all have voted labour at the last election....this charade might be over by now. Yup. All politicos will choose the easy option, until that option is taken away by an external force. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 12, 2013 Author Share Posted November 12, 2013 Maybe we should all have voted labour at the last election....this charade might be over by now. We would have the man who saved the Universe running the show, why would the wheels have come off? GB bigger and better than God. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted November 12, 2013 Share Posted November 12, 2013 As the ERM debacle showed, no central bank can protect against a storm-surge in the markets**. ** With the exception of the US in 08/09, but they've shot their wad on that now. The markets are the QE dependent addicts of the central banksters now though. Look at all the hedge funds who have lost massively in recent years trying to short this market. Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted November 12, 2013 Share Posted November 12, 2013 As the ERM debacle showed, no central bank can protect against a storm-surge in the markets**. ** With the exception of the US in 08/09, but they've shot their wad on that now. ERM showed how hard it is to pin a currency to a pegged exchange rate. Not really applicable to now. Quote Link to comment Share on other sites More sharing options...
slacker Posted November 12, 2013 Share Posted November 12, 2013 ERM showed how hard it is to pin a currency to a pegged exchange rate. Not really applicable to now. It's very applicable. We're talking about pegging an interest rate. It's like playing poker with your hand open for anyone to see. It showed that a one-way bet against a central bank can work. You've a generation of hedgefund managers that saw Soros become a legend on the back of it. Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted November 12, 2013 Share Posted November 12, 2013 It's very applicable. We're talking about pegging an interest rate. It's like playing poker with your hand open for anyone to see. It showed that a one-way bet against a central bank can work. You've a generation of hedgefund managers that saw Soros become a legend on the back of it. They don't need to peg an interest rate. They say 'This is now the base rate'. Even if they want to take on the long end of the curve then they just do QE, which requires nothing more of them than saying 'We're doing QE'. Somewhat different to a market controlled exchange rate that they have to buy and sell currency in the open market to control. There are external factors at play there, with finite foreign exchange reserves to defend/peg that rate with and nasty feedback loops that move your target further from you. That is far from the case for an interest rate in their sovereign currency (and any hedge fund manager who trades rates should know that). Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 The sky is falling Chicken Lickin http://www.bbc.co.uk/news/business-24909678 Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted November 12, 2013 Share Posted November 12, 2013 The sky is falling Chicken Lickin http://www.bbc.co.uk/news/business-24909678 Unexpected. We must bring forward HTB3 immediately. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 (edited) Unexpected. We must bring forward HTB3 immediately. Nae lad, the ONS just need a different set of statistics. The shocker is the BBC reporting the expected rises in the article earlier this morning. ****y reporting. Wouldn't it be Ironic if HTB2 is the catalyst to bring out the truth of the market and collapse the whole sorry mess. I'd like to see several MPs in the clink for what they have done. Edited November 12, 2013 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
happy_renting Posted November 12, 2013 Share Posted November 12, 2013 The sky is falling Chicken Lickin http://www.bbc.co.uk/news/business-24909678 Not so fast... http://www.bbc.co.uk/news/business-24910587 Does anyone believe these stats any more? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2013 Share Posted November 12, 2013 Not so fast... http://www.bbc.co.uk/news/business-24910587 Does anyone believe these stats any more? That, for a central banker, is a clamity, for the rest of us who dont get a pay rise, it's also a calamity, for the BBC it's a gift...they make it sound like prices aren't going up. Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted November 12, 2013 Share Posted November 12, 2013 The sky is falling Chicken Lickin http://www.bbc.co.uk/news/business-24909678 That's a nice big house! Quote Link to comment Share on other sites More sharing options...
Visitor Posted November 12, 2013 Share Posted November 12, 2013 I wonder how long before Cameron suggests offering billions to big business so they can buy and build properties for their employees to rent. I'm quite sure his selective historical memories will convince him of its merit. Quote Link to comment Share on other sites More sharing options...
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