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Bellweather Mfi Has 30% More Off Existing 50% Off Sale

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http://portal.telegraph.co.uk/money/main.j.../ixcitytop.html

Shares in furniture retailer MFI plunged 28pc at one stage this morning on rumours of an emergency board meeting at the company.
Analysts believe MFI has continued to struggle. The furniture retailer is currently offering customers a 30pc discount on top of its half-price sale.

MFI has prospered as MEWing homewoners cashed money out to buy things for the home. What happened?

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And yet inspite of record low volumes in the housing market, mortgage borrowing contiunes to trend upwards.

What are they spending it on? Not cr*p as evidenced by MFI et al, not houses because they're not selling.......

.....IMO the surge in mortgage lending represents the fact that it is easier ( if you have a poor credit rating ) to get a secured loan on your house than an unsecured one. People are using the house as security to borrow money in order to pay the bills, pay taxes, buy fuel and food that lenders would otherwise not lend to them.

I do like the media spin that there's no prospect of an IR cut in Feb because the "eocnomy is accelerating" erm right of course, noting to do with inflation then?

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And yet inspite of record low volumes in the housing market, mortgage borrowing contiunes to trend upwards.

What are they spending it on? Not cr*p as evidenced by MFI et al, not houses because they're not selling.......

.....IMO the surge in mortgage lending represents the fact that it is easier ( if you have a poor credit rating ) to get a secured loan on your house than an unsecured one. People are using the house as security to borrow money in order to pay the bills, pay taxes, buy fuel and food that lenders would otherwise not lend to them.

I do like the media spin that there's no prospect of an IR cut in Feb because the "eocnomy is accelerating" erm right of course, noting to do with inflation then?

Or, could they be MEWing to buy equities? - Returns are far better over the past 12 months than leaving money to devaluate in property - Just think - MEWing to provide gearing for equity purchases - whatever next?

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Having lived through times where IRs went up and down like a yo-yo - often by 1% at a time - I never thought I would live to see the day where a 0.25% rise in Interest Rates would spook the whole economy - and the housing market.

I think things are so fragile now that such a rise would generate media headlines like 'BOE dooms UK to recession' etc.

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Having lived through times where IRs went up and down like a yo-yo - often by 1% at a time - I never thought I would live to see the day where a 0.25% rise in Interest Rates would spook the whole economy - and the housing market.

I think things are so fragile now that such a rise would generate media headlines like 'BOE dooms UK to recession' etc.

when interest rates are at 4%, a .25% change has the same effect as a 1% change at 16%

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Or, could they be MEWing to buy equities? - Returns are far better over the past 12 months than leaving money to devaluate in property - Just think - MEWing to provide gearing for equity purchases - whatever next?

Borrowing to gamble? Recipe for utter disaster.

In any case most people who would be that comfortable using secured loans to play the market are unlikely to need to borrow that money in the first place!

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Having lived through times where IRs went up and down like a yo-yo - often by 1% at a time - I never thought I would live to see the day where a 0.25% rise in Interest Rates would spook the whole economy - and the housing market.

I think things are so fragile now that such a rise would generate media headlines like 'BOE dooms UK to recession' etc.

Ah but Marina, in 1990 ( and we know what happended next ) debt interest and repayments stood at 22% of average national take home income...... okay okay base rates were 7-5%.

You know what the debt servicing and repayment % is today in 2005? After all of those rates cuts? Go on have a guess!..................

..........21.5% and rising.

A 0.25% move today if just as bad as a 1% move then. It's due to an effect called gearing. ;)

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And yet inspite of record low volumes in the housing market, mortgage borrowing contiunes to trend upwards.

What are they spending it on? Not cr*p as evidenced by MFI et al, not houses because they're not selling.......

.....IMO the surge in mortgage lending represents the fact that it is easier ( if you have a poor credit rating ) to get a secured loan on your house than an unsecured one. People are using the house as security to borrow money in order to pay the bills, pay taxes, buy fuel and food that lenders would otherwise not lend to them.

I do like the media spin that there's no prospect of an IR cut in Feb because the "eocnomy is accelerating" erm right of course, noting to do with inflation then?

Houses are selling though volumes are not at an all time low in fact Property Transactions in the last 2 quarters are the highest since 1988 as I pointed out in this thread.

HPC Transaction Link

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What are they spending it on? Not cr*p as evidenced by MFI et al, not houses because they're not selling.......

Except that houses are selling, which answers your question. We just finished the busiest fourth quarter for transaction volumes since 1988.

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Guest Charlie The Tramp

Except that houses are selling, which answers your question. We just finished the busiest fourth quarter for transaction volumes since 1988.

Ah so you are an EA. <_< Oh well just logged off.

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And house sales were very low in the first two quarters of last year.

Many people seem to equate increasing volumes with rising prices. I believe that you need volume to force a price change in either direction.

Think of it like this. If no houses sold for a month would that indicate a price rise or a price fall?

Low volume leads to stagnant prices. High volume leads to price changes.

Yes. We wait with baited breath to see if the massive increase in volumes will translate into a rise or a fall in property values.

Of cause it will be really depressing if they rise - depressing that is for anyone who wants a home, it will be great for house builders, banks and estate agents of cause.

But logically thinking they could go either way as you say.

Didn't someone have a graph of the last crash that showed transaction volumes dipping and the picking up as prices started to fall? Or is that just wild optimism?

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Except that houses are selling, which answers your question. We just finished the busiest fourth quarter for transaction volumes since 1988.

What happened next? After 1988 that is. I forget. :ph34r:

Edited by Irkuiem

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What happened next? After 1988 that is. I forget. :ph34r:

Yeah but a bit depressing - if that is the case the housing market won't bottom until 2014. I was hoping that the market had already started to crash. If this is the case then all those doom and gloom mongers like zorn might be right.

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Yeah but a bit depressing - if that is the case the housing market won't bottom until 2014. I was hoping that the market had already started to crash. If this is the case then all those doom and gloom mongers like zorn might be right.

I am worried about that as well.

I also remember reading somewhere on this forum that the economic cycles are about 18 years (can't remember the author), so that may well fit this pattern.

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Or, could they be MEWing to buy equities? - Returns are far better over the past 12 months than leaving money to devaluate in property - Just think - MEWing to provide gearing for equity purchases - whatever next?

AFAIK This is exactly what people did before the great depression.

Edited by TimG

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Something has to feed the greed! Now that HPI is no longer a growth vehicle for easy money its over to Equities. Buffet says watch the crowd and do the opposite--cash is king.

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MFI has prospered as MEWing homewoners cashed money out to buy things for the home. What happened?

It was false information, rumor only.

http://business.timesonline.co.uk/article/...2011080,00.html

Where is your analysis that people purchasing MFI goods has been bought by MEW - please provide link.

I have analyzed the situation, pumping all the relevant data in to my mathematical model and concluded that this will not form part of the crash.

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Except that houses are selling, which answers your question. We just finished the busiest fourth quarter for transaction volumes since 1988.

Ah so you are an EA. <_< Oh well just logged off.

Did we now? That explains a lot.

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Ah so you are an EA. <_< Oh well just logged off.

Did we now? That explains a lot.

WWWAAAAHHHHHHHHHAAAAAAAAAAAAAAAA

Nice one guys.

What an idiot.

How can one be spending so much time on here, but also be so busy! :lol:

Where is the ignore function?? :lol:

Mods,

This is justification for putting Zorn into the trolls group, I feel. :P

Edited by BubbleTurbo

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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