renting til I die Posted September 4, 2016 Share Posted September 4, 2016 "Dear Mr Carney, [CC: Treasury + MP] Yes me again I’m afraid. “Insanity is doing the same thing over and over again and expecting a different result.” Attributed to Einstein but it was Rita Mae Brown. Whoever, they seem clearer minded than the MPC with yet another round of rate cutting and helicopter money. We have record employment, a plunging pound, FTSE rocketing, and house price speculation at 8.4%/year and rates go DOWN? You said on LBC Radio that this is specifically to “help” mortgage payers – but they don’t create wealth they lock it up, unlike job-creating businesses which have no need for any more loans. Mortgage debtors have had unlimited “help” since 2008 and they STILL need more? The existing £1.5Tn of household debt cannot possibly ever be repaid, so why reward over-indebtedness yet again? And why single out mortgage debtors as always? We have the lowest levels of home ownership for decades. How does it put more money into the pockets of the majority with no mortgage? How does it help renters? If you’re going to “force” banks to pass cuts on to mortgagees I assume you’ll force landlords to reduce rents so that renters have more to spend in the economy? No, thought not. You said a while ago that Brexit would cause rates to go UP – quite a miscalculation there! Still, even Theresa May isn’t immune to rapid about-turns: the day before becoming PM she said “monetary policy – in the form of super-low interest rates and QE – has helped those on the property ladder at the expense of those who can’t afford to own their own home.” Apparently you’re not in favour of negative interest rates, but you said there will be more cuts. To what - 0.1%? 0.0000000001%? You’re running out of decimal places. The rate cut isn’t interesting though, it’s the £170bn of QE. Put together they can only result in asset price inflation. No less than Adam Posen ex-MPC seems to agree: “The new TFS won't work as demand for loans remains weak. You’re still pushing on a string. Banks will simply refuse to take the extra reserves because there is no demand. The MPC is making a dangerous move by encouraging lending, considering real estate prices in the UK are already inflated”. You said: “What we've seen in other countries is, to be honest, they've got this a bit wrong, rate cuts haven’t been passed on”. If YOU have been right all along, why do we need another round of cuts and QE now then? By the way, my complaint has NOTHING to do with “poor old savers”. In fact lower rates will make me even LESS likely to spend any savings – which hardly helps the economy. More unrepayable debt. So yes, I think old Albert and Mae were right – insanity. “Reg” PS> Mortgage debtors need more “help” do they? They already have: Dual income mortgages, Interest only mortgages, buy-to-let tax advantages and unregulated lending, lowest ever interest rates, relatively lower Basel capital requirements/risk weightings for property backed assets, Funding for Lending, NewBuy Guarantee, FirstBuy Scheme, Homebuy, Help to Buy equity loans, Help to Buy mortgage guarantee, Shared Ownership, Housing Benefit, Support for Mortgage Interest payments, Build now pay later scheme, New Homes Bonus, Affordable Homes Programme, Get Britain Building Fund, Builders Finance Fund, Right to Buy, Proposed building standard and regulation cost cutting, Looser residential planning approval rules than for offices/commercial property, Releasing more public land for private rather than public uplift, New homes zero-rated for VAT, Build to Rent Fund, Stamp duty reforms, Rental Deposit Loan Scheme, Help to Buy ISA, main home inheritance tax allowance, 'Discounted' starter homes, Expropriated HA properties, Housing Growth Partnership, 40% HTB-London, blah blah, the list goes on and on..... Fun letter reg, if a bit rantly (no less so than the ones that I write ). Some really good points raised, although I am sure that the BOE know this all already, they are just trying to keep up the facade. I really liked the bit about forcing landlords to cut rents to help spending in the economy, hopefully Mark will take this tip on board. Ha. Quote Link to comment Share on other sites More sharing options...
RIP Posted September 4, 2016 Share Posted September 4, 2016 Thank you for your kind and supportive comments folks. With a bit of luck Carnage will cut again and tip me over the edge again . What's funny now is of course this month's stats seem to be showing that sheeple' and businesses' confidence are fine and a cut wasn't warranted after all. The boe knee-jerked it, after years of refusing to INCREASE rates because they were 'looking through short term noise'. Blimey, maybe theyll admit they were wrong and increase again this month! I'd like an excuse to email them again because on reflection i really would like a reply to my question why he isnt forcing landlords to pass the cut on to tenants.... Quote Link to comment Share on other sites More sharing options...
RIP Posted September 4, 2016 Share Posted September 4, 2016 ... i guess BoE would say 'oh we can't force landlords because we can't interfere with private businesses'. Well what the hell do they think banks are? I must grudgingly admit that back in 2009 i would have been amazed if anyone had said the can could have been kicked this far down the road though. What a surreal world we live in these days, yet sheeple think everything's completely normal and sustainable. Surely it's obvious that with far more debt than 2008 and no appreciable increases in gdp the next blow-up will be spectacular...... now where's me crystal ball..... Quote Link to comment Share on other sites More sharing options...
RIP Posted September 5, 2016 Share Posted September 5, 2016 Well there we go then! As predicted, 'service sector' doing fine. So put the rate back where it was Carnage you charlatan. Quote Link to comment Share on other sites More sharing options...
RIP Posted September 6, 2016 Share Posted September 6, 2016 [i realised too late I should have put my original post under the "Interest Rates 10 years from now" thread, ah well!]. Anyway, today's missile: "Dear Mr Carney, Well there we go. Service sector in strongest rebound for 20 years. House prices up yet again. Please can you give me some “forward guidance” so I can decide whether to tie in to a fixed-rate savings account now, or wait until next month. Jacob Rees-Mogg is right – rates have been cut far too early with no time to collect enough data. Whenever in the past we’ve needed a rate rise you always said you were “looking through the short-term fluctuations” and we never had one in the end. Yet one month’s non-existent data and we have an immediate cut! Oh, and I’m sad to see that I’ve had no reply to my question: “if you are forcing banks to pass the rate cut on to mortgage-debtors so they can spend to help the economy [which doesn’t seem to need it thanks], will you be forcing landlords to pass on their rate cut to tenants so RENTERS can spend to help the economy?”. If you aren’t, please can you tell me why not? "RIP"" Quote Link to comment Share on other sites More sharing options...
One-percent Posted September 6, 2016 Author Share Posted September 6, 2016 [i realised too late I should have put my original post under the "Interest Rates 10 years from now" thread, ah well!]. Anyway, today's missile: "Dear Mr Carney, Well there we go. Service sector in strongest rebound for 20 years. House prices up yet again. Please can you give me some “forward guidance” so I can decide whether to tie in to a fixed-rate savings account now, or wait until next month. Jacob Rees-Mogg is right – rates have been cut far too early with no time to collect enough data. Whenever in the past we’ve needed a rate rise you always said you were “looking through the short-term fluctuations” and we never had one in the end. Yet one month’s non-existent data and we have an immediate cut! Oh, and I’m sad to see that I’ve had no reply to my question: “if you are forcing banks to pass the rate cut on to mortgage-debtors so they can spend to help the economy [which doesn’t seem to need it thanks], will you be forcing landlords to pass on their rate cut to tenants so RENTERS can spend to help the economy?”. If you aren’t, please can you tell me why not? "RIP"" Perhaps also ask why the sky did not fall in as he predicted prior to brexit. http://www.independent.co.uk/news/business/news/eu-referendum-carney-doubles-down-on-brexit-recession-risk-warning-a7044681.html Mind, I could work out what the feck he was saying. Needs a lesson or two on the use of the English language. Quote Link to comment Share on other sites More sharing options...
RIP Posted September 6, 2016 Share Posted September 6, 2016 Yes do please join in and ask him, the more the merrier: email Enquiries @ bankofengland.co.uk and copy to public.enquiries @ hmtreasury.gsi.gov.uk and your MP..... Quote Link to comment Share on other sites More sharing options...
Confusion of VIs Posted September 6, 2016 Share Posted September 6, 2016 Perhaps also ask why the sky did not fall in as he predicted prior to brexit. http://www.independent.co.uk/news/business/news/eu-referendum-carney-doubles-down-on-brexit-recession-risk-warning-a7044681.html Mind, I could work out what the feck he was saying. Needs a lesson or two on the use of the English language. Because his rapid action saved the day! IIRC that's the jist of what he told the select committee Quote Link to comment Share on other sites More sharing options...
One-percent Posted September 6, 2016 Author Share Posted September 6, 2016 Because his rapid action saved the day! IIRC that's the jist of what he told the select committee As yes, superhero to the rescue. Quote Link to comment Share on other sites More sharing options...
RIP Posted September 6, 2016 Share Posted September 6, 2016 "rapid action saved the day" ;-) - but of course he always used to say that rate cuts "take time to filter through to the economy". So he takes "rapid action" and everything's fine and dandy by the next morning! Amazing. "RIP" Quote Link to comment Share on other sites More sharing options...
eek Posted September 6, 2016 Share Posted September 6, 2016 It's nice to see Busta provided some reasonable advice in this thread https://www.property118.com/confused-changes-tax-relief-mortgage-interest/90309/ Yep - as I've continually stated a lot of BTLers aren't going to understand what's happened to them until its far too late... Quote Link to comment Share on other sites More sharing options...
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