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wonderpup

Imf Warns Of Housing Crashes.

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Determined not be caught with egg on their faces this time around the IMF has issued the following;

IMF Warns Of Housing Crashes – World Bank Says ‘Now Is The Time To Prepare For Next Crisis’
Yesterday, the IMF and World Bank issued warnings about the global economy.

The International Monetary Fund (IMF) warned that the world must act to contain the risk of another devastating housing crash. The World Bank warned that the anticipated rise in interest rates will hit global growth this year – and presumably house prices too.

“We are not totally out of the woods yet,” Kaushik Basu, the World Bank’s Senior Vice President and chief economist and he warned that “now is the time to prepare for the next crisis.”

The warning from the IMF came as it published new data showing house prices are well above their historical average in many countries as covered in the Financial Times today. The data shows how an acceleration in house prices in many countries from already high levels has emerged as one of the major threats to global economic stability.

Read more at http://www.maxkeiser.com/2014/06/imf-warns-of-housing-crashes-world-bank-says-now-is-the-time-to-prepare-for-next-crisis/#6ODFYPDm4haIImzm.99

Got to the love IMF- The muscle of International finance.They spent decades touring the world issuing demands for welfare and pensions cuts for some of the poorest people on the planet because there could be no bailouts without conditions attached- and when they themselves were bailed out were any conditions attached?

What do you think?

Leaked copies of Strauss-Kahn’s early January statement to the Executive Board’s budget committee and subsequent message to all Fund staff indicate that the Fund will largely be targeting the middle management of the institution. He would “like the process of downsizing to rely on voluntary approaches to separation to the extent possible” and plans to open a voluntary early retirement window from the end of January.

The biggest immediate change is to retirement rules to allow any staff member over the age of 50 to retire with an unreduced pension. There is no plan to eliminate the Fund’s defined benefit pension scheme even though countless Fund programmes in developing countries have required pension restructuring and privatisation.

http://www.twnside.org.sg/title2/finance/twninfofinance20080201.htm

Funny how that works. Want a IMF bailout- cut those pensions and benefits. The IMF needs a bailout? We'll just change the rules to make sure none of our people take a hit to their pensions.

I really hate these f*ckers.

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Erm someone please explain to me why a housing crash is bad?

Because the whole western economy is based on people borrowing money from the banks agaist HPI to buy Chinese tat they don't want or need but will make them feel better. No HPI no spending, no spending, no shops, no shops no retail jobs or supply chain jobs. No borrowing no bank profits, no bank profits no stock market return, no stock market return no money to pay pensions.

The opportunity for 3-5% of the population to buy a house at a sensible (ie reduced) prices is at the expense of a far larger proportion of the population. Furthermore the knock on effect will be significant to the many who are not directly affected.

Set this in a scenario where the UK has a large proportion of people paid for by the taxpayer (one in four will be on the state pension by 2050) and taxes must go up to cover the massive handouts. Even thetheoretic possible erradication of housing benefit is dwarfed by the increased spending.

In short the UK is dependent upon HPI much as the rest of the world. This expains why so much has been thrown at the "problem" in recent times and why Brown thought he had saved the world and in fact did save the world (or postpone the inevitable - we shall see).

The best outcome would have been the one that was taking place - slow falls in the cost of houses mainly driven by stagnant prices and inflation of the currency used to buy them. Look at the graph on the home page and you can see that this "soft landing" was going well until the madness set back in.

A housing crash is and will be bad news. I think a lot of folk on here expect it to work out for them and for some it will, but the fall out of a full on crash will, I believe, leave many very dissapointed indeed. Sadly, IMHO, a crash is now almost certain as opposed to a return to that nice, gentle, downward fall.

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A housing crash is and will be bad news. I think a lot of folk on here expect it to work out for them and for some it will, but the fall out of a full on crash will, I believe, leave many very dissapointed indeed. Sadly, IMHO, a crash is now almost certain as opposed to a return to that nice, gentle, downward fall.

Yep, I hope that I'm one of the lucky ones but I am fully aware that I may not be!

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Because the whole western economy is based on people borrowing money from the banks agaist HPI to buy Chinese tat they don't want or need but will make them feel better. No HPI no spending, no spending, no shops, no shops no retail jobs or supply chain jobs. No borrowing no bank profits, no bank profits no stock market return, no stock market return no money to pay pensions.

The opportunity for 3-5% of the population to buy a house at a sensible (ie reduced) prices is at the expense of a far larger proportion of the population. Furthermore the knock on effect will be significant to the many who are not directly affected.

Set this in a scenario where the UK has a large proportion of people paid for by the taxpayer (one in four will be on the state pension by 2050) and taxes must go up to cover the massive handouts. Even thetheoretic possible erradication of housing benefit is dwarfed by the increased spending.

In short the UK is dependent upon HPI much as the rest of the world. This expains why so much has been thrown at the "problem" in recent times and why Brown thought he had saved the world and in fact did save the world (or postpone the inevitable - we shall see).

The best outcome would have been the one that was taking place - slow falls in the cost of houses mainly driven by stagnant prices and inflation of the currency used to buy them. Look at the graph on the home page and you can see that this "soft landing" was going well until the madness set back in.

A housing crash is and will be bad news. I think a lot of folk on here expect it to work out for them and for some it will, but the fall out of a full on crash will, I believe, leave many very dissapointed indeed. Sadly, IMHO, a crash is now almost certain as opposed to a return to that nice, gentle, downward fall.

Hilarious. Increase my rent, and that of 9 million other private renters, to save the economy.

Eat a hard crash.

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Because the whole western economy is based on people borrowing money from the banks agaist HPI to buy Chinese tat they don't want or need but will make them feel better. No HPI no spending, no spending, no shops, no shops no retail jobs or supply chain jobs. No borrowing no bank profits, no bank profits no stock market return, no stock market return no money to pay pensions.

The opportunity for 3-5% of the population to buy a house at a sensible (ie reduced) prices is at the expense of a far larger proportion of the population. Furthermore the knock on effect will be significant to the many who are not directly affected.

Set this in a scenario where the UK has a large proportion of people paid for by the taxpayer (one in four will be on the state pension by 2050) and taxes must go up to cover the massive handouts. Even thetheoretic possible erradication of housing benefit is dwarfed by the increased spending.

In short the UK is dependent upon HPI much as the rest of the world. This expains why so much has been thrown at the "problem" in recent times and why Brown thought he had saved the world and in fact did save the world (or postpone the inevitable - we shall see).

The best outcome would have been the one that was taking place - slow falls in the cost of houses mainly driven by stagnant prices and inflation of the currency used to buy them. Look at the graph on the home page and you can see that this "soft landing" was going well until the madness set back in.

A housing crash is and will be bad news. I think a lot of folk on here expect it to work out for them and for some it will, but the fall out of a full on crash will, I believe, leave many very dissapointed indeed. Sadly, IMHO, a crash is now almost certain as opposed to a return to that nice, gentle, downward fall.

HPI = a drag on the economy, higher manufacturing costs, higher wage costs.

As with all forms of inflation (which is a tax on cash, savings and pensions) the only beneficiaries are governments, and those that feed from the taxpayer's/government's trough.

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The opportunity for 3-5% of the population to buy a house at a sensible (ie reduced) prices is at the expense of a far larger proportion of the population. Furthermore the knock on effect will be significant to the many who are not directly affected.

A proper crash wouldn't negatively affect the majority of the population. I think only 1/3 of houses currently have an outstnading mortgage. Of course, the illusory 'wealth' of some people may disappear. For most it would only mean exchanging houses at a lower £ value.

Hard crash please.

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The data shows how an acceleration in house prices in many countries from already high levels has emerged as one of the major threats to global economic stability.

Well in the UK the "acceleration in house prices" is down to Osborne and his pals so they're the threats to global economic stability.

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I am begining to think that we will only get a housing crash if we expel all the foreigners, especially the wealthy ones, who are currently buying up properties across the length and breadth of Britain.

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The UK is spectacularly bankrupt. A second house price crash will be the least of our concerns. Soaring inflation, unemployment and lawlessness is what comes next.

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A proper crash wouldn't negatively affect the majority of the population. I think only 1/3 of houses currently have an outstnading mortgage. Of course, the illusory 'wealth' of some people may disappear. For most it would only mean exchanging houses at a lower £ value.

Hard crash please.

I can agree with that....the next home will therefore not require as much debt to pay for and service.....more money to spend, less need of inflation busting payrises to pay for debt, more incentive to pay down debt......

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A proper crash wouldn't negatively affect the majority of the population. I think only 1/3 of houses currently have an outstnading mortgage. Of course, the illusory 'wealth' of some people may disappear. For most it would only mean exchanging houses at a lower £ value.

Hard crash please.

I can agree with that....the next home will therefore not require as much debt to pay for and service.....more money to spend, less need of inflation busting payrises to pay for debt, more incentive to pay down debt......

You are only looking at property. Whilst the fall in property prices will favour those who want to buy and can afford to (and have waited for the fall) it will cripple the borrow-to-consume la-la land economy in which we now live. The "lucky" people will be those whose jobs are not affected or income affected, but gain from lower house buying costs. I don't think that will be a very high percentage of the population. Many people's jobs rely directly or indirectly on the la-la land economy. If you manufacture goods to sell to whom are you going to sell them? If you are reliant on financial services (as 3/4 of the IT industry is) you are screwed. If you rely on a government handout (pensioners) from where is the money to fund your sponging?

There's nothing to be gained in a half price house if you are now unemployed.

Jump up and down in glee as thousands of amateur BTL halfwits get wiped out, but watch the clever ones mop up the repos at knock down prices. A 50% fall in capital values means the new BTL people can charge half the rent to get the same yield. Do you all honestly think the clever money is all spent already?

Don't get me wrong - houses are due a 50% drop, so are rents. In the long term it will be to the good, but the short to medium term fall out will be very nasty.

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So we should perpetuate the current unbalanced economy to keep the feckless in clover and then all suffer the consequences when the entire thing implodes?

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