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CaptainSwing

After The Crash, How Can We Stop This Happening Again?

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After the crash this year, there will be an excellent opportunity to stop this kind of destructive speculation and poor capital allocation from wrecking our economy again.

How can we stop it? What kind of rules or controls could we put in place to stop irresponsible lending?

In sum, how can we stop Kirstie n Phil / HUTH from selling property as a leisure pursuit?

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After the crash this year, there will be an excellent opportunity to stop this kind of destructive speculation and poor capital allocation from wrecking our economy again.

How can we stop it? What kind of rules or controls could we put in place to stop irresponsible lending?

In sum, how can we stop Kirstie n Phil / HUTH from selling property as a leisure pursuit?

Not until the bankers fraudsters are jail and there is full bank regulation plus a real change of governance in the UK,

Edited by TheCountOfNowhere

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I cant remember the poster who said this in an unrelated thread a while ago on this site, but it sounded correct.

Remove BTL tax breaks, treat it as a proper business

and more importanlty, ONLY allow BTL mortgages on NEW builds. If you want to play Chief Speculator, you have to put your money towards an additional house for this country.

and do some psycho testing on MP's and Bankers.

The beginning of this problem was human greed, first and foremost.

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It doesn't matter what systems you put in place the human being always has a tendency towards self interest, suicidal capitalism the the ultimate expression of this. Ideally we would want much smarter humans who are less driven for material shit and seek other more fulfilling ways to live life.

I say this because in my experience "thick" folk tend to be a lot greedier and selfish than "clever" folk.

Also just because you have a degree does not make you clever.

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Nothing will need to be done, just leave it to free market forces............. no tinkering, no problem!

And how do you stop the tinkering ?

And by tinkering, I mean, full blown intervention.

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And how do you stop the tinkering ?

And by tinkering, I mean, full blown intervention.

You need a Constitution which enshrines limited government. Mind you the Americans have one of them, they mostly ignore it these days.

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After the crash this year, there will be an excellent opportunity to stop this kind of destructive speculation and poor capital allocation from wrecking our economy again.

How can we stop it? What kind of rules or controls could we put in place to stop irresponsible lending?

In sum, how can we stop Kirstie n Phil / HUTH from selling property as a leisure pursuit?

Perhaps use a common sense: house price (as the largest family expense) to be a 25% of the CPI/RPI

Job done! Where can I collect Nobel prize from Economics???

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Intervention will only lead to manipulation!

Proper education, as opposed to learning about Princess Di & The Beckhams (my boy's year 2 syllabus on the '90's). Start with what money means (a medium of exchange for labour & goods). Then explain what debt is (a promise of future labour). Once they understand that in spending money, they are exchanging parts of their lives, they'll be a lot more circumspect in frittering it away.

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I cant remember the poster who said this in an unrelated thread a while ago on this site, but it sounded correct.

Remove BTL tax breaks, treat it as a proper business

and more importanlty, ONLY allow BTL mortgages on NEW builds. If you want to play Chief Speculator, you have to put your money towards an additional house for this country.

and do some psycho testing on MP's and Bankers.

The beginning of this problem was human greed, first and foremost.

BTL has tax breaks because it IS treated as a proper business!

I think the idea that BTL should only be able to buy new build properties is a good idea. Not only would it help to increase the housing stock but it would also help to increase the quality of rental accommodation! Maybe if this rule was bought in, we wouldn't be so worried about the tax breaks that LLs get either.

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BTL has tax breaks because it IS treated as a proper business!

I think the idea that BTL should only be able to buy new build properties is a good idea. Not only would it help to increase the housing stock but it would also help to increase the quality of rental accommodation! Maybe if this rule was bought in, we wouldn't be so worried about the tax breaks that LLs get either.

If BTL owns all of the second hand stock then buyers 'would' buy new properties and the market would supply them at a price they could afford (without government gifted deposits and ZIRP).

What prevents the market from working is the government's laws that restrict the supply of homes and prevents the market responding to demand thus causing bubbles.

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1996 - BTL mortgages are brought into being (under a Selfservative government). Coincidence, or the main cause for this current sustained bubble effect? I suspect the latter.

The one very simple change I'd make is to make all bank financing of BTL a business loan only available to a registered company - if you want to buy up property privately, fine, but you have to do it with your own capital – Nationwide et al should be made to return to the founding principles of being a BUILDING society instead of a BTLing one.

What we absolutely need to stop is the self-perpetuating expansion of BTL empires in a rising market - i.e. allowing equity in one mortgaged property to be used as deposit on another - this lead to a mania of land-grabbing which has created 'haves' and 'have nots'.

Secondly, we need to get the price of commercial property down - most notably, the type used for start-ups in manufacture, tech and engineering. The government policy should prioritise addressing supply shortages in small affordable commercial units - these sectors are struggling & we desperately need to address our worsening trade deficit. My Indian friend tells me that our competitive edge in engineering and tech is that culturally, we encourage free thought and eccentricity. We need to cherish and nurture those aspects of both our culture and economy Setting up a business that actually ADDS VALUE to the economy should always be more lucrative than idle greedy rent-seeking.

Edited by disenfranchised

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Rogue trader nick leeson was asked this question on london news today , and the guy basically said you will never stamp out corruption and greed :rolleyes:

Edited by longgone

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It doesn't matter what systems you put in place the human being always has a tendency towards self interest, suicidal capitalism the the ultimate expression of this. Ideally we would want much smarter humans who are less driven for material shit and seek other more fulfilling ways to live life.

I say this because in my experience "thick" folk tend to be a lot greedier and selfish than "clever" folk.

really?

what about the people who deliberately spead rumours of the new gold rush......what if they have a vested interest in shovel production?

(it ain't the prospective gold miners that make the money, it's the toolmakers!)

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Secondly, we need to get the price of commercial property down - most notably, the type used for start-ups in manufacture, tech and engineering. The government policy should prioritise addressing supply shortages in small affordable commercial units - these sectors are struggling & we desperately need to address our worsening trade deficit. My Indian friend tells me that our competitive edge in engineering and tech is that culturally, we encourage free thought and eccentricity. We need to cherish and nurture those aspects of both our culture and economy Setting up a business that actually ADDS VALUE to the economy should always be more lucrative than idle greedy rent-seeking.

we used to have free thought, until someone started using the countries media outlets to pump out goebbels-like propaganda

now this is actually extremely serious,because it explains why the country is losing it's edge.

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Rogue trader nick leeson was asked this question on london news today , and the guy basically said you will never stamp out corruption and greed :rolleyes:

unless you take the chinese approach and send them to the firing squad.

pretty good track record on repeat offenders..there aren't any.

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Easy....not permitting the withdrawing of equity as new cash debt....thus preventing leveraging up on the purchase of new property and spending as wages not yet earned.

No IO loans....

Edited by winkie

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After the crash this year, there will be an excellent opportunity to stop this kind of destructive speculation and poor capital allocation from wrecking our economy again.

How can we stop it? What kind of rules or controls could we put in place to stop irresponsible lending?

In sum, how can we stop Kirstie n Phil / HUTH from selling property as a leisure pursuit?

The only way it will stop far any length of time ,is if everyone who have made bad financial decisions whoever they may be homeowners /BTL/ business need to feel the pain ...best lessons learnt are the ones learnt the hard way

Let Kirstie and Phil try to sell their HPI propaganda to the masses when the masses are up the proverbial creek without a paddle

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