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dances with sheeple

Newsnight - "half A Mil" Is The New "100 Grand"

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Very strange conversation about the new mortgage rules on Newsnight tonight. It seems that not only are we expected to pretend that the price is just the price and nothing can be done about it, we are also to believe that incredible sums of money to the average person are OK to borrow if we just stretch the payment time out by an extra decade or so. Watch the conversation and know that the end game approaches rapidly.

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Had a conversation with a colleague today and they got offered £250k for there first mortgage in a blink of an eye. They that they could borrow that if they ate beans for 5 years.

However as prices only go up borrowing money isnt a problem and the banks become too big to fail and bail.

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Its funny to think that at the 'peak' people were getting discount trackers and thus paying below base rate. Now they get BR + 2 or 3%, so the actual rate new buyers are paying is no better than during the crunch inducing price indices.

Add to that Camerons theft of purchasing power and the cost of living crisis, these peak plus valuations are just insane.

People must be sacrificing expenditure elsewhere. Watch Retail sales closely over the next few months. All is being sacrificed for Osbourne crack up boom.

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Had a conversation with a colleague today and they got offered £250k for there first mortgage in a blink of an eye. They that they could borrow that if they ate beans for 5 years.

However as prices only go up borrowing money isnt a problem and the banks become too big to fail and bail.

Newsnight conversation talks about 750k like it was 2 or 3 years wages, and he keeps using the phrase "grand" trying to talk sheeple and dumb down the concept of value and smooth over the consequences of being a big enough Dildo to borrow this kind of money at the present time (or any time)

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Newsnight conversation talks about 750k like it was 2 or 3 years wages, and he keeps using the phrase "grand" trying to talk sheeple and dumb down the concept of value and smooth over the consequences of being a big enough Dildo to borrow this kind of money at the present time (or any time)

Its like everyone but us is a bankster getting million pound bonuses.

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Newsnight conversation talks about 750k like it was 2 or 3 years wages, and he keeps using the phrase "grand" trying to talk sheeple and dumb down the concept of value and smooth over the consequences of being a big enough Dildo to borrow this kind of money at the present time (or any time)

What's the big deal dough?

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Very strange conversation about the new mortgage rules on Newsnight tonight. It seems that not only are we expected to pretend that the price is just the price and nothing can be done about it, we are also to believe that incredible sums of money to the average person are OK to borrow if we just stretch the payment time out by an extra decade or so. Watch the conversation and know that the end game approaches rapidly.

Mortgage extensions are just another affordability delusion. Extend by 10 yrs and you might save yourself £100 on the monthly repayments but then end up shelling out an additional £100k in interest for the same property.

They don't work for the banks either. Lower monthly repayments equates with diminished cashflow and compressed margins.

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Newsnight conversation talks about 750k like it was 2 or 3 years wages, and he keeps using the phrase "grand" trying to talk sheeple and dumb down the concept of value and smooth over the consequences of being a big enough Dildo to borrow this kind of money at the present time (or any time)

They are the enemy. Not victims.

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In 1977 it was "Forty Grand" according to The Jam in the lyrics for Bricks and Mortar

Why do they have to knock them down
And leave the site dormant for months on end?
Who has the right to make that choice?
A man whose home has cost forty grand

If you read the lyrics now you'd think it was someone who lives in a slum in Hartlepool who is making the big decisions about building things but back then it would have only been highly paid executives who could afford a house worth 40 grand.

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watch any old (pre-2007) Location location location or escape to the country or property ladder (even HUTH) and the prices seem 'almost reasonable' but the peak prices have become the 'new normal' and the basis for what your mortgage has to be for

there has really been no 'price correction' in 2008/9 and the insanity continue.

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Newsnight conversation talks about 750k like it was 2 or 3 years wages, and he keeps using the phrase "grand" trying to talk sheeple and dumb down the concept of value and smooth over the consequences of being a big enough Dildo to borrow this kind of money at the present time (or any time)

I wonder whether house prices will ever bear any relationship to wages ever again. It appears that they now correspond to wealth accumulation as opposed to affordability by reference to wages. 750k looks crazy until you consider the average boomer couple will soon have a net worth of one million pound upon retirement. Generous inheritance tax rules and wealth accumulation from people simply not dying any more and no recent destructive resets such as a second world war or allowing markety discovery have meant massive accumulations in the hands of a few elite who can make up for unaffordabilty by multi property portfolios.

Guess we will just have to get used to the fact that it is no longer about income...even the socialists like Blair, Milibot and Meacher are helping themselves to several properties.

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I wonder whether house prices will ever bear any relationship to wages ever again. It appears that they now correspond to wealth accumulation as opposed to affordability by reference to wages. 750k looks crazy until you consider the average boomer couple will soon have a net worth of one million pound upon retirement. Generous inheritance tax rules and wealth accumulation from people simply not dying any more and no recent destructive resets such as a second world war or allowing markety discovery have meant massive accumulations in the hands of a few elite who can make up for unaffordabilty by multi property portfolios.

Guess we will just have to get used to the fact that it is no longer about income...even the socialists like Blair, Milibot and Meacher are helping themselves to several properties.

the average boomer has about 5k

many scrape by week to week.

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the average boomer has about 5k

many scrape by week to week.

Certainly a lot less than the balance sheet would suggest, much of it ponzied housing wealth.

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Property has become a capitalist play thing and that is what is keeping the market afloat. You're in the game if you have perceived equity. Inheritance will also play a big part in the future......Milibot is a classic example. This suggests the average couple in the US is worth nearly $5 million on retirement but I don't believe it........but this is the demographic that are driving the market. It has become about personal balance sheets not income and expenditure accounts

http://www.financialsamurai.com/the-average-net-worth-for-the-above-average-married-couple/

Edited by crashmonitor

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Its funny to think that at the 'peak' people were getting discount trackers and thus paying below base rate. Now they get BR + 2 or 3%, so the actual rate new buyers are paying is no better than during the crunch inducing price indices.

Add to that Camerons theft of purchasing power and the cost of living crisis, these peak plus valuations are just insane.

People must be sacrificing expenditure elsewhere. Watch Retail sales closely over the next few months. All is being sacrificed for Osbourne crack up boom.

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I wonder whether house prices will ever bear any relationship to wages ever again. It appears that they now correspond to wealth accumulation as opposed to affordability by reference to wages. 750k looks crazy until you consider the average boomer couple will soon have a net worth of one million pound upon retirement. Generous inheritance tax rules and wealth accumulation from people simply not dying any more and no recent destructive resets such as a second world war or allowing markety discovery have meant massive accumulations in the hands of a few elite who can make up for unaffordabilty by multi property portfolios.

Guess we will just have to get used to the fact that it is no longer about income...even the socialists like Blair, Milibot and Meacher are helping themselves to several properties.

its different this time :lol:

pull yourself together man...all that is happened for the last twelve month is government backed sub prime lending...the market has stalled now...prices are insane...the banks/government can try and do what they like but when the idiots dry up...they have a problem. this whole sham will be exposed by the end of the summer.

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its different this time :lol:

pull yourself together man...all that is happened for the last twelve month is government backed sub prime lending...the market has stalled now...prices are insane...the banks/government can try and do what they like but when the idiots dry up...they have a problem. this whole sham will be exposed by the end of the summer.

I can`t link to the iplayer video but the guy (not sure if he is a Newsnight reporter) seems desperate in the way he is trying to put the information across, really struggling to make it sound credible.

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its different this time :lol:

pull yourself together man...all that is happened for the last twelve month is government backed sub prime lending...the market has stalled now...prices are insane...the banks/government can try and do what they like but when the idiots dry up...they have a problem. this whole sham will be exposed by the end of the summer.

+1

Unless Osborne can conjure up another direct subsidy I believe UK house prices will peak again this summer, perhaps six months earlier than they would have done under the original HtB2 timetable. The govt will point to the MMR as the probable cause (a lie, affordability is the real cause) and use it to illusrate their willingness to keep the market under control (another lie, Osborne can't afford to spend any more and keep his borrowing on a falling trend).

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+1

Unless Osborne can conjure up another direct subsidy I believe UK house prices will peak again this summer, perhaps six months earlier than they would have done under the original HtB2 timetable. The govt will point to the MMR as the probable cause (a lie, affordability is the real cause) and use it to illusrate their willingness to keep the market under control (another lie, Osborne can't afford to spend any more and keep his borrowing on a falling trend).

I'm not so confident about the timing, but I'm convinced the market interference has "worked too well" - a few nudges might have got sustainable growth at 5 to 7%, but having had near-vertical growth (remember haart's figure of 63% annual increase for West London the other day) I challenge anyone to show me any market, anywhere, ever that has gone from that level of excess directly to stability (aka soft landing).

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Had a conversation with a colleague today and they got offered £250k for there first mortgage in a blink of an eye. They that they could borrow that if they ate beans for 5 years.

However as prices only go up borrowing money isnt a problem and the banks become too big to fail and bail.

So now you know why food banks have trippled in the last 12 months, people biting off more than they can chew. ;)

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Sheeple TV is just like CNBC these days, but for ramping houses, not stocks and shares.

Everytime I see a share being ramped on CNBC I go to Stocktwits and look at a chart for the shorting opportunities.

I wish there was a chart for houses. We are bound to be at the mark up phase by now, to be followed by a selling climax (on low volumes) and inevitable collapse.

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