StainlessSteelCat Posted February 3, 2017 Share Posted February 3, 2017 (edited) I wonder if the spending is in anticipation of inflation combined with appalling rates on offer re: savings. Edited February 3, 2017 by StainlessSteelCat Quote Link to comment Share on other sites More sharing options...
Dorkins Posted February 3, 2017 Share Posted February 3, 2017 (edited) 17 minutes ago, StainlessSteelCat said: I wonder if the spending is in anticipation of inflation combined with appalling rates on offer re: savings. Why would you spend more in anticipation of inflation? Wouldn't you think 'uh oh, looks like everything's about to get a lot more expensive, better batten down the hatches and hang onto every penny I can'? Edited February 3, 2017 by Dorkins Quote Link to comment Share on other sites More sharing options...
Wayward Posted February 3, 2017 Share Posted February 3, 2017 1 hour ago, Dorkins said: Why would you spend more in anticipation of inflation? Wouldn't you think 'uh oh, looks like everything's about to get a lot more expensive, better batten down the hatches and hang onto every penny I can'? I think that's right...same with interest rates...many savers save more when confronted with low rates...its the psyche of the prudent saver. Something TPTB and the BOE don't understand. My response to the decrease in the BR to 0.25% was folks will need to tighten their belts even more. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted February 3, 2017 Share Posted February 3, 2017 8 hours ago, LC1 said: Bloody Brexit. Or is it Trump? Mother Theresa's going to intervene if the energy market is shown to be failing. https://www.theguardian.com/business/2017/feb/03/npower-electricity-gas-price-rises-dual-fuel-bills Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted February 3, 2017 Share Posted February 3, 2017 5 hours ago, Dorkins said: Why would you spend more in anticipation of inflation? Wouldn't you think 'uh oh, looks like everything's about to get a lot more expensive, better batten down the hatches and hang onto every penny I can'? Or bring forward large planned purchases? I certainly have done. I'll also consider stockpiling some long lasting foodstuffs. I suspect the average HPCer doesn't think like the average person. A large proportion of the population can't make it to payday, never mind anticipate the future in the way you suggest. Quote Link to comment Share on other sites More sharing options...
monkeyman1974 Posted February 4, 2017 Share Posted February 4, 2017 22 hours ago, Agentimmo said: This. I've a colleague who is starting a conversion on her 3 bed semi in south London, this month. Adding extra bedroom, extending kitchen and dining room area, brickwork, rebuilding garage etc. Big task, and costing her £110K all in. She's extending the mortgage to pay for most of it. Why ? Tells me that she cannot afford to move up to the next rung on the ladder. Has waited 5 yrs but needs the space. Anyway, she tells me it's money well spent as she get it back the day she comes to sell. We'll see how that works out........ this will also skew the house price stats, as the sale numbers are not cleansed of capital expenditure Quote Link to comment Share on other sites More sharing options...
North London Rent Girl Posted February 7, 2017 Author Share Posted February 7, 2017 On 02/02/2017 at 9:44 PM, SE10 said: Reminds me of a tweet I saw earlier today... Oh, beautiful. He really can say precisely whatever crap comes into his head, can't he? Safe in the knowledge that nobody's really going to call him on it. Tsk. Quote Link to comment Share on other sites More sharing options...
North London Rent Girl Posted February 7, 2017 Author Share Posted February 7, 2017 On 02/02/2017 at 9:50 PM, Sancho Panza said: https://notayesmanseconomics.wordpress.com/2017/02/01/how-many-more-times-can-the-bank-of-england-pump-up-the-housing-market/ Worth noting the constant slating Carney gets from one of the politest people in economics,Shaun Richards... Brilliant, that was a bit of an antidote. Quote Link to comment Share on other sites More sharing options...
LondonIsFallingDown Posted February 7, 2017 Share Posted February 7, 2017 On 2/2/2017 at 9:50 PM, Sancho Panza said: https://notayesmanseconomics.wordpress.com/2017/02/01/how-many-more-times-can-the-bank-of-england-pump-up-the-housing-market/ Worth noting the constant slating Carney gets from one of the politest people in economics,Shaun Richards... 'This morning the Monetary Policy Committee meets to make its policy decision although of course us plebs and mere mortals are not told until 12pm tomorrow. What could go wrong from this “improvement”. However what we have is an extraordinarily lax monetary policy driven by yet more forecasting errors by the Bank of England. In a post EU Leave vote panic it cut the official Bank Rate to 0.25% ( so below what Governor Mark Carney had told us was the 0.5% lower bound for it) announced £60 billion of extra UK Gilt buying QE and of course some £10 billion of Corporate Bond QE. The latter was particularly problematic as you see UK companies are often international and thereby issue in Euros and US Dollars meaning that as I pointed out at the time the Bank of England would be a big fish in a small pond. So it bent its criteria. For example, a company headquartered outside of the UK but employing hundreds of people in the UK and generating sales of £20m in the UK would be considered to make a material contribution to the UK economy. All of these moves were house price favourable but there was another subsidy provided for the banks that as ever was badged as being for small business lending but was in fact likely to find its way into the housing market. This is the Term Funding Scheme. The Term Funding Scheme (TFS) is designed to reinforce the transmission of Bank Rate cuts to those interest rates actually faced by households and businesses by providing term funding to banks at rates close to Bank Rate So far it has provided some £31.37 billion of cheap funding to UK banks, which no doubt will in a “surprise” find its way to the housing market. Can foreign buyers rescue it one more time? I am not so sure as I have pointed out before although the fact that Bitcoin has been rallying again ( US $977 as I type this) means that money is back flowing out of China. The first time buyer house price to earnings ratio in London has dipped slightly but to a rather extraordinary 10.1. The number for the whole country at 5.3 is just below the all time high of 5.4 which came of course just before the credit crunch hit. ' Mark Carney has a lot to answer for but no doubt his ex-colleagues at Goldman Sachs will give him support. Quote Link to comment Share on other sites More sharing options...
pathfinder Posted February 7, 2017 Share Posted February 7, 2017 And so I continue to work a three day week while work begs me every few weeks to go full time. This sterling funny money is worthless beyond cost of living, bills, weekend festivals and the beer fund. Everything else is inflated to the moon. Don't trust shares, running small business, or 1% on a cash. Nope I am going to keep sipping Porter. May buy the odd bargain and stock up ready to do a bit of ebaying or a little sideline.... but that's about it. UK really is comedy "Fools" gold. Quote Link to comment Share on other sites More sharing options...
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