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Labour to propose cap on credit card interest

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Labour is to announce plans for a broad cap on the total interest anyone can pay to a credit card company, potentially helping some three million Britons trapped in a debt spiral.

http://www.independent.co.uk/news/uk/politics/labour-conference-personal-debt-credit-card-john-mcdonnell-brighton-jeremy-corbyn-a7964931.html

Another vote winning policy from the labour party.

I'm sure the tax payer will be left paying this off anyway.

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Excellent idea.

The root cause of the problem is clearly that it should be more attractive to borrow.

I hope I'm still around in 40 years to see how history looks at the last 40 years.

This is all beyond a joke now.

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Up until now, it has been in the best interests of the credit companies to load people up with as much debt as they can pay and more, in the full knowledge that they will make more money out of the repayments than the original value of the loan and then to keep the debtor paying ad infinitum. With these proposed changes the devils in the detail, you may be right this could be handled very badly and encourage people to run up yet more on the never never. Alternatively, if the credit companies realise they will not make enough money on their debt slaves to make the risk worthwhile credit could well dry up

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...and when credit dries up the desperate will go to loan sharks...this time though they will have a lot more than high interest rates to pay when they decide they don't want to be responsible for their debts!

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The credit will just dry up if the perceived risk is too much. I am generally not in favour of regulation like this for exactly that reason. The free market works well where it genuinely is a free market with appropriate levels of competition...

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John McDonnell sees cheap debt as the answer to everything. This was him last year planning to make councils provide sub prime mortgage lending
 

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Councils should offer cheap, local-authority backed mortgages to help first-time buyers and bring in rent regulations, according to the shadow chancellor, John McDonnell.

In a speech at Labour’s state of the economy conference on Saturday, he will say the party wants to address the “freefall decline in home ownership among young people”, pointing to a number of Labour councils that are underwriting mortgages or lending money directly.

The idea of councils offering loans for property goes further than George Osborne’s Help to Buy scheme, which guarantees part of a mortgage to enable people to buy with smaller deposits.
Guardian Today: the headlines, the analysis, the debate - sent direct to you
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McDonnell will say: “We’ll give local authorities the powers to impose local rent regulations where these are needed … but we have to also meet the aspirations of people to own their own home.”

McDonnell said he wanted to see councils following the example of Manchester, Sandwell in the West Midlands and Warrington in Cheshire by offering cheap, local authority-backed mortgages to first-time buyers in particular.

“With too many first-time buyers excluded from the housing market by high street banks, we’ll be looking at ways to securely expand local authority mortgage lending,” he will say.

https://www.theguardian.com/politics/2016/may/21/labour--councils-help-first-time-buyers-mortgages-john-mcdonnell

 

 

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3 minutes ago, Democorruptcy said:

John McDonnell sees cheap debt as the answer to everything. This was him last year planning to make councils provide sub prime mortgage lending
 

 

Local Authority mortgages were available in the 1960's. Did the legislation change or did councils just decide to stop doing them?

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Another form of heleicoptor money (ppi).....rather the money is spent and the interest not paid for than the whole lot spent and not paid for.....money has to be spent however it is spent, whoever spends it, wherever it comes from.....the system we now live in.;)

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"For too long, perhaps ever since the war, we postponed facing up to fundamental choices and fundamental changes in our society and in our economy. That is what I mean when I say we have been living on borrowed time. For too long this country - all of us, yes, this Conference too - has been ready to settle for borrowing money abroad to maintain our standards of life, instead of grappling with the fundamental problems of British industry. Governments of both parties have failed to ignite the fires of industrial growth in the ways that countries with very different political and economic philosophies have done. Take Germany; France, Japan - different countries, different philosophies. We are, as you know, still borrowing money. But this time we are not borrowing - if the Government con­tinues on its present course - to pay for yet another short-lived consumer boom of the kind which used to buy success at the polls - or so we were told - but which never bought success in the world’s markets or at the work place. We are borrowing now partly to pay for our huge investment in the North Sea. We are borrowing, too, because other industrial nations volunteer credits, so that our strategy and our proposals for regenerating British industry need not be thwarted by short-term speculative movements of sterling balances - a load we have still been unable to shed. We are determined that this borrowing will be used to act and to press on with the task of rebuilding a regenerated manufactur­ing industry. This time we are not going for a consumer boom on borrowed money: we are going to invest it in our future."

 

From James Callaghan ,the Labour leaders speech to conference in Blackpool 1976.

It was their next government that created the biggest consumer boom in history on borrowed money,and they invested nothing for the future.A direct opposite to the last line of the above speech.

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2 hours ago, Noallegiance said:

Excellent idea.

The root cause of the problem is clearly that it should be more attractive to borrow.

I hope I'm still around in 40 years to see how history looks at the last 40 years.

This is all beyond a joke now.

The debt will keep you alive, the host needs to survive for the parasite to survive. 

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10 minutes ago, longgone said:

The debt will keep you alive, the host needs to survive for the parasite to survive. 

Interesting you say that. I watched a documentary on Goldman Sachs last night. The word 'parasite' came up a few times.

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20 minutes ago, Noallegiance said:

Interesting you say that. I watched a documentary on Goldman Sachs last night. The word 'parasite' came up a few times.

modus operandi my friend modus operandi ;)

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3 hours ago, durhamborn said:

"For too long, perhaps ever since the war, we postponed facing up to fundamental choices and fundamental changes in our society and in our economy. That is what I mean when I say we have been living on borrowed time. For too long this country - all of us, yes, this Conference too - has been ready to settle for borrowing money abroad to maintain our standards of life, instead of grappling with the fundamental problems of British industry. Governments of both parties have failed to ignite the fires of industrial growth in the ways that countries with very different political and economic philosophies have done. Take Germany; France, Japan - different countries, different philosophies. We are, as you know, still borrowing money. But this time we are not borrowing - if the Government con­tinues on its present course - to pay for yet another short-lived consumer boom of the kind which used to buy success at the polls - or so we were told - but which never bought success in the world’s markets or at the work place. We are borrowing now partly to pay for our huge investment in the North Sea. We are borrowing, too, because other industrial nations volunteer credits, so that our strategy and our proposals for regenerating British industry need not be thwarted by short-term speculative movements of sterling balances - a load we have still been unable to shed. We are determined that this borrowing will be used to act and to press on with the task of rebuilding a regenerated manufactur­ing industry. This time we are not going for a consumer boom on borrowed money: we are going to invest it in our future."

 

From James Callaghan ,the Labour leaders speech to conference in Blackpool 1976.

It was their next government that created the biggest consumer boom in history on borrowed money,and they invested nothing for the future.A direct opposite to the last line of the above speech.

Nah.

Brown was smart enough to reclassify consumption and benefits as investments - 'Investing in our future .. by borrowing money o spend on tax credits to raise kids (who Im sure will be hugely productive workers ....)

And here we are. ~4% budget defricit. National debt doubled. ~50% of working age families with kids on tax credits (v. expensive benefits).

Eurodisney, car makers, Dominoes pizza and spoons has done fantastic off Brown's 'investment'. Uk . less so.

 

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democracy at work...

Most people with a right to vote are in debt and so will vote for parties that promote debt forgiveness..

Most people with a right to vote own housing and so will vote for parties that protect the value of housing

Most people with a right to vote won't have to pay back the national debt and so don't care about this and will vote for parties that don't seriously address the issue

"Tyranny of the majority" - google it....the cause of many of our ills

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From the Labour conference... "John McDonnell promises to wind up all existing PFI contracts".

Might have just won my vote with that policy.

Is he declaring war on moneylenders?

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4 minutes ago, Futuroid said:

From the Labour conference... "John McDonnell promises to wind up all existing PFI contracts".

Might have just won my vote with that policy.

Is he declaring war on moneylenders?

No he has bankrupted the Country dozens of times over..... And that's before you get to his nationalisation plans.

How do you think this will be paid for?

 

Not to mention this seems to be at odds with the earlier policy of remaining in the Single Market..... The EU simply won't allow it.

Edited by geezer466

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38 minutes ago, geezer466 said:

No he has bankrupted the Country dozens of times over..... And that's before you get to his nationalisation plans.

How do you think this will be paid for?

 

Not to mention this seems to be at odds with the earlier policy of remaining in the Single Market..... The EU simply won't allow it.

Their great policy is issue gilts to pay for all the nationalisation plans and hand them to shareholders.So im to be given worthless Labour government debt.Its a bit like the Southern Army in the American civil war taking your assets off the farm and paying for them in worthless Southern currency.We dont steal we pay,just dont try to spend it.

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53 minutes ago, geezer466 said:

No he has bankrupted the Country dozens of times over..... And that's before you get to his nationalisation plans.

How do you think this will be paid for?

 

Not to mention this seems to be at odds with the earlier policy of remaining in the Single Market..... The EU simply won't allow it.

So the UK is taking back soverignty so it can complete its transformation in a fully fledged bankers bitch?

On the Single Market Labour are having their cake and eating it (they will be both in and out of the Single Market at the same time). Once they saw the public at large fall for Brexit means Brexit they knew that almost anything was credible.

(As it happens you can just make the state or states - England, Scotland, Wales, NI - the shareholder and neatly circumvent many of the EU rules on privatisation / national ownership. See Deutsche Bahn for details). 

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2 minutes ago, Futuroid said:

So the UK is taking back soverignty so it can complete its transformation in a fully fledged bankers bitch?

On the Single Market Labour are having their cake and eating it (they will be both in and out of the Single Market at the same time). Once they saw the public at large fall for Brexit means Brexit they knew that almost anything was credible.

(As it happens you can just make the state or states - England, Scotland, Wales, NI - the shareholder and neatly circumvent many of the EU rules on privatisation / national ownership. See Deutsche Bahn for details). 

Where do you get Bankers Bitch from?

Yes the banks have issues but they are afforded far too much credibility than they deserve. Brown was at the Helm (and responsible for the previous 10 years of financial regulation) when they went pop in 2008.

There may well be a circumvention but you still haven't answered how it will be paid for.

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"Bank of England sounds alarm on debt bubble risks"

(http://www.bbc.co.uk/news/business-41386219)

Well I never! It's almost like some sort of coordinated plan with non government institution that couldn't possibly know anything about a completely different and unaffiliated government institution like the Bank of England's plans all coming together at once. Gosh what a coincidence!

That's settled then... their plan ... cut off the debt supply

Now how did that song by Nat King Cole go again? Oh yes I remember now ....

 

 

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  • 293 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% +
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      • Even
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      • up 5%



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