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Eddie_George

Rachel Reeves: Ppe Economist And Economic Illiterate

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What’s been your best investment?

I bought a flat in Lewisham, southeast London in my mid-20s for about £117,000 and sold it for about £210,000 four years later. That helped me to have a bigger deposit for the next house.

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What other investment would've given her that return?

What other investment could she have leveraged at upwards of 1000%, even if she identified something that would nearly double-bag in four years? £100k from £10k or less is quite a return.

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What other investment would've given her that return?

What other investment could she have leveraged at upwards of 1000%, even if she identified something that would nearly double-bag in four years? £100k from £10k or less is quite a return.

You miss the point. How much did her new house appreciate in price before she bought it? With HPI, the rungs on the housing ladder become farther apart.

Edited by Eddie_George

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You miss the point. How much did her new house appreciate in price before she bought it? With HPI, the rungs on the housing ladder become farther apart.

But isn't that the game. Without the equity from her first property she couldn't afford the second. If she had rented she probably couldn't afford the first one either. Not saying hpi is good or sensible but if you don't join in you get left behind.

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But isn't that the game. Without the equity from her first property she couldn't afford the second. If she had rented she probably couldn't afford the first one either. Not saying hpi is good or sensible but if you don't join in you get left behind.

I think it is called leveraging ones asset.

It works fine in a rising market but bites you in the **** in a falling one. The strategy basically relies on HPI to infinity. But nothing is forever not even in the UKs crazy property market. Last person to lever up is the bag holder.

Edited by stormymonday_2011

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I think it is called leveraging ones asset.

It works fine in a rising market but bites you in the **** in a falling one. The strategy basically relies on HPI to infinity. But nothing is forever not even in the UKs crazy property market. Last person to lever up is the bag holder.

The trouble is, when you are importing a constant flow of people used to living in conditions like this....

article-1345926-00BE7AA3000004B0-516_468

People who are basically content to just have running water and electricity, expect to see the housing stock further degraded. Semis cut up in to 3 or 4 flats, gardens used to host sheds with beds and so forth.

4 billion people in Africa by 2090. If people think immigration is bad now/ the UK is crowded now, wait a few more years.It hasnt even started yet.

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I think it is called leveraging ones asset.

It works fine in a rising market but bites you in the **** in a falling one. The strategy basically relies on HPI to infinity. But nothing is forever not even in the UKs crazy property market. Last person to lever up is the bag holder.

The trouble is, when you are importing a constant flow of people used to living in conditions like this....

article-1345926-00BE7AA3000004B0-516_468

People who are basically content to just have running water and electricity, expect to see the housing stock further degraded. Semis cut up in to 3 or 4 flats, gardens used to host sheds with beds and so forth.

4 billion people in Africa by 2090. If people think immigration is bad now/ the UK is crowded now, wait a few more years.It hasnt even started yet.

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The trouble is, when you are importing a constant flow of people used to living in conditions like this....

article-1345926-00BE7AA3000004B0-516_468

People who are basically content to just have running water and electricity, expect to see the housing stock further degraded. Semis cut up in to 3 or 4 flats, gardens used to host sheds with beds and so forth.

4 billion people in Africa by 2090. If people think immigration is bad now/ the UK is crowded now, wait a few more years.It hasnt even started yet.

PLAN A.

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The trouble is, when you are importing a constant flow of people used to living in conditions like this....

article-1345926-00BE7AA3000004B0-516_468

People who are basically content to just have running water and electricity, expect to see the housing stock further degraded. Semis cut up in to 3 or 4 flats, gardens used to host sheds with beds and so forth.

4 billion people in Africa by 2090. If people think immigration is bad now/ the UK is crowded now, wait a few more years.It hasnt even started yet.

This assumes that Africa will not become a more pleasant place to live anytime in the next 75 years, and that they'll all still want to leave. I've been to sub-saharan Africa and been appalled by the corruption and all-pervasive incompetence, so I have to admit that there's some merit to that assumption, but it shouldn't be beyond the wit of man to massively raise living standards across much of Africa (which would likely have the knock-on effect of significantly reducing their birth rate). It was apparent when I was there in 2012 that mobile phone payment systems were taking off, and were a boon to small traders etc. They already had pretty good 3G coverage across much of the country. It was depressing to look at the search histories on the various computers I used and find that 50% of them were about the Masons, who are apparently widely believed to be a powerful force for evil across much of Tanzania...

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if she had bought gold in 2003, she would have made 4x her money. If she had bought bitcoins in 2010 she would have made 100x

coulda, woulda, shoulda

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This assumes that Africa will not become a more pleasant place to live anytime in the next 75 years, and that they'll all still want to leave. I've been to sub-saharan Africa and been appalled by the corruption and all-pervasive incompetence, so I have to admit that there's some merit to that assumption, but it shouldn't be beyond the wit of man to massively raise living standards across much of Africa (which would likely have the knock-on effect of significantly reducing their birth rate). It was apparent when I was there in 2012 that mobile phone payment systems were taking off, and were a boon to small traders etc. They already had pretty good 3G coverage across much of the country. It was depressing to look at the search histories on the various computers I used and find that 50% of them were about the Masons, who are apparently widely believed to be a powerful force for evil across much of Tanzania...

Only way I can see africa would 'develop' is if they had some massive (and potentially very authoritarian) government structure like china. Thats the only kind of circumstance I can see anything being achieved in such a short time. It still took since 1980 in China, and china only had to find work and futures for a few hundred million as a starting point. Africa is already a billion. Given the ethnic and tribal divisions, such a thing seems a pipe dream however. Then you have the increasing colonization of Islam, which wont do anything for birth rate reductions (and, morbid though it is to look at it this way, a reduction in HIV deaths leading to further population increases)

Never been to africa myself. Relatives do charity work out there. The women seem to do all the work, the men sit around smoking/drinking. Colleages have been on business. Bribery seems the only way to get anything done. Those are the only 'personal' observations i've got to go by. I have no desire to find out first hand either!

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The trouble is, when you are importing a constant flow of people used to living in conditions like this....

article-1345926-00BE7AA3000004B0-516_468

People who are basically content to just have running water and electricity, expect to see the housing stock further degraded. Semis cut up in to 3 or 4 flats, gardens used to host sheds with beds and so forth.

4 billion people in Africa by 2090. If people think immigration is bad now/ the UK is crowded now, wait a few more years.It hasnt even started yet.

Not only that, the majority are also what is called functionally illiterate i.e. have an I.Q. of less than 85. It is also believed that there is also an average I.Q. breaking point at about 97 where below which a modern civilization cannot be maintained and begins to fall apart.

There is a reasonable article on wikipedia https://en.wikipedia.org/wiki/Nations_and_intelligence

The world rankings are also illuminating https://iq-research.info/en/page/average-iq-by-country

As are the ones for American States!

In the UK average I.Q. has fallen by 2 points in the last 20 years, there are probably many reasons for this but importing greater numbers of low I.Q. individuals will not help.

I wonder what the average I.Q. of journalists is now compared to 50 years ago when it would have been a good career.

It is also interesting to see China's I.Q. figures and if this indicator is anything to go by they will take over the world.

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You miss the point. How much did her new house appreciate in price before she bought it? With HPI, the rungs on the housing ladder become farther apart.

No I don't. The investment that took £10k to £100k (ballpark figures - the £10k could've been much lower pre-crash) was the point. The madness of the housing and credit market was outside her control. And if she lost money on her next house, well, that's not what's being claimed as a best investment.

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Not only that, the majority are also what is called functionally illiterate i.e. have an I.Q. of less than 85. It is also believed that there is also an average I.Q. breaking point at about 97 where below which a modern civilization cannot be maintained and begins to fall apart.

There is a reasonable article on wikipedia https://en.wikipedia.org/wiki/Nations_and_intelligence

The world rankings are also illuminating https://iq-research.info/en/page/average-iq-by-country

As are the ones for American States!

In the UK average I.Q. has fallen by 2 points in the last 20 years, there are probably many reasons for this but importing greater numbers of low I.Q. individuals will not help.

I wonder what the average I.Q. of journalists is now compared to 50 years ago when it would have been a good career.

It is also interesting to see China's I.Q. figures and if this indicator is anything to go by they will take over the world.

Im personally not as pessimistic about the IQ vs Race issue. I think environment is probably understated by those who focus on it (although overstated by the political and 'scientific' consensus) The highest academic achieving group in the UK is actually a tribe of blacks (nigerian Ibos) and the lowest, a white group (Irish travellers)

My reservations are more

1) Vulnerability to Identity politics and the desire of the left to harvest it.

2) the sheer numbers of immigrants and their effect on quality of life.

Edited by Executive Sadman

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Bear in mind before politics she was a senior economist with HBOS in the run up years to the credit crunch

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Bear in mind before politics she was a senior economist with HBOS in the run up years to the credit crunch

Well then we know what her views on leverage are.

Fill your boots and if it all goes tits up the taxpayer will bail you out.

Edited by stormymonday_2011

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Well then we know what he views on leverage are.

Fill your boots and if it all goes tits up the taxpayer will bail you out.

Indeed.

Born 1979. Implying she bought this flat approx 2004 and sold approx 2009. Doesn't make sense against her numbers?

However she moved to Leeds in 2006 for her HBOS job implying she bought her flat in her early 20s not mid 20s. Straight out of university (3 years at Oxford, one at lse) in fact. Good going getting a flat deposit together so quickly, like immediately after a rather expensive university education, or am I missing something?

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Born 1979. Implying she bought this flat approx

That kind of assumption is complete nonsense. When do you think next door's daughter (born 1994) bought her house?

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That kind of assumption is complete nonsense. When do you think next door's daughter (born 1994) bought her house?

She stated she bought it in her mid twenties :)

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It does rather imply she hasn't seen similar gains in her Leeds house, which she probably bought at the top of the market more or less, albeit on a HBOS preferential staff mortgage.

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Im personally not as pessimistic about the IQ vs Race issue. I think environment is probably understated by those who focus on it (although overstated by the political and 'scientific' consensus) The highest academic achieving group in the UK is actually a tribe of blacks (nigerian Ibos) and the lowest, a white group (Irish travellers)

My reservations are more

1) Vulnerability to Identity politics and the desire of the left to harvest it.

2) the sheer numbers of immigrants and their effect on quality of life.

You're making the mistake - Skin colour = race.

The difference is between cultures.

Igbos have been high achieving for centuries. Igbos value education.

Irish travellers are about as backwards as you can get for a white colour - bar some coal town out in the Apalcians.

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PPE = undergraduate economics degree * 1/3

The fact that so many politicians in the UK have nothing more than a degree in PPE explains rather a lot about the current state of the UK economy.

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