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From the report's summary (abridged)

Quote
  1. The UK has been able to maintain a current account deficit without a falling exchange rate due to large financial inflows from overseas.
  2. The UK’s unbalanced international position has been enabled by a combination of global imbalances, asset price inflation, and the financialisation of the UK economy.
  3. These structural imbalances result from the financialisation of the UK economy, which has increased asset prices and financial instability, led to ‘Dutch disease’ and rising inequality, and driven financial market concentration.
  4. Rebalancing the UK’s international position requires moderating the significance of finance within the UK economy and bringing asset price volatility under control, while nurturing non-financial exporting sectors.

Full report here.

From the report:

Quote

As such, we propose an overarching reform to macroprudential policy, both to counter systemic risk and limit house price inflation. The Financial Policy Committee (FPC) of the Bank of England should be given an explicit house price inflation target, set by government. This would be analogous to the mandate the Monetary Policy Committee (MPC) has to control consumer price inflation. The aim of such a target would be to set property price expectations (a critical driver of house price inflation), reduce excessive debt, and reduce capital inflows by disincentivising property investment.

I haven't had a chance to read the full report yet, but it looks like it's worth a look

Edited by Jurassic Bland

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There have been radical suggestions for a few years that the BoE should start targeting the value of the £.

House prices are a red herring in this. The exchange rate, aka our nation's ability to sustainably trade, is where it's at.

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The banks only purpose should be maintain monetary stability.  Given they only have monetary policy under their control doing anything else will be (and is) a failure though unfortunately over a long timescale. 

The joke is trying to maintain monetary stability by only maintaining the pounds value relative to consumer goods is a joke.  Our currency has been massively devalued, to all our detriment, as even though its held its value against consumables and other (devaluing) currencies, its value against assets such as housing, shares or gold has plummeted. 

Bizarre policies like this are just making the bank more of a mess.  Just get a proper measure of inflation that actually works and then only target that! 

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Out of interest do people in the larger European countries such as France and Germany earn more doing the same job as people in the UK......by earning more I mean does the money they earn go further, for example food in Euros costs so much more for those earning pounds than those earning euros.😉

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(aside/slightly tongue in cheek) Bring back the McDonald's index?

Oops, I meant the Big Mac Index (conveniently: BMI).

I didn't know there was recent traffic on this "lighthearted" idea - here.

Edited by Aidan Ap Word

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4 hours ago, winkie said:

Out of interest do people in the larger European countries such as France and Germany earn more doing the same job as people in the UK......by earning more I mean does the money they earn go further, for example food in Euros costs so much more for those earning pounds than those earning euros.😉

depends on the job.

in germany, engineering  and technical is regarded very highly and the wages are basically double what UK rate is.

food /living cost wise and tax wise germany is about on par with UK.

at the other end of the spectrum the low skilled jobs are as near as damn it zero hours,and it's not uncommon for people in this bracket to be employed in at least two "mini's" of 20hrs+pw each.

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5 hours ago, Aidan Ap Word said:

(aside/slightly tongue in cheek) Bring back the McDonald's index?

Oops, I meant the Big Mac Index (conveniently: BMI).

I didn't know there was recent traffic on this "lighthearted" idea - here.

The Economist still does the big mac index.

Nico Colchesters idea i rememver.

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11 hours ago, oracle said:

depends on the job.

in germany, engineering  and technical is regarded very highly and the wages are basically double what UK rate is.

food /living cost wise and tax wise germany is about on par with UK.

at the other end of the spectrum the low skilled jobs are as near as damn it zero hours,and it's not uncommon for people in this bracket to be employed in at least two "mini's" of 20hrs+pw each.

So some jobs are valued more monetarily in other places in Europe than others......but for us buying with pounds our jobs are worth even less when buying consumer products and services.....? USA and Europe used to be cheap as chips.....not so anymore.😉

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18 hours ago, Aidan Ap Word said:

(aside/slightly tongue in cheek) Bring back the McDonald's index?

Oops, I meant the Big Mac Index (conveniently: BMI).

I didn't know there was recent traffic on this "lighthearted" idea - here.

I always liked the idea of the hot waitress index http://www.businessdictionary.com/definition/hot-waitress-economic-index.html

I always checkout my waitress very closely in the interests of economic research

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5 hours ago, Funn3r said:

I always liked the idea of the hot waitress index http://www.businessdictionary.com/definition/hot-waitress-economic-index.html

I always checkout my waitress very closely in the interests of economic research

I think the presentation that the allocation of resources (and at varying levels for resources of different properties) changes as the business cycle changes is a useful one.

I, personally, wish to distance myself from the underlying sexism. OK, I am not being a PC-overacheiver, just calling out the sexism where I see it. Without the sexism (it is named the "waitress" index, not restaurant service staff index after all).

But it (not the sexism, but the theory) is something we talk about all the time: about how in a boom even the houses in desperate need of work fly "off the shelves" for asking++ prices, but when the tables (served or otherwise) turn then only the homes with the high-quality-twigs-in-a-vase and the best finishes seem to sell at all.

There's a lot in the thinking behind this (otherwise impractical?) 'index', me thinks.

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11 hours ago, winkie said:

So some jobs are valued more monetarily in other places in Europe than others......but for us buying with pounds our jobs are worth even less when buying consumer products and services.....? USA and Europe used to be cheap as chips.....not so anymore.😉

I don't think you quite got me.

over in germany they are keen on people who can problem solve, do tangible stuff and make tangible stuff. engineering,manufacturing and techie stuff is the backbone of their economy.Hence the ability of such people to command such high salary.

It's not even about monetary status, it is about "knowledge" status, and the sciences/medical score much higher than salesmen.

their idea of a technician is classed as an engineer(in some circles) over here.....almost all technicians there will have at least a diploma, you will very rarely find an engineer without a degree.

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19 hours ago, oracle said:

I don't think you quite got me.

over in germany they are keen on people who can problem solve, do tangible stuff and make tangible stuff. engineering,manufacturing and techie stuff is the backbone of their economy.Hence the ability of such people to command such high salary.

It's not even about monetary status, it is about "knowledge" status, and the sciences/medical score much higher than salesmen.

their idea of a technician is classed as an engineer(in some circles) over here.....almost all technicians there will have at least a diploma, you will very rarely find an engineer without a degree.

That is a good thing is it not?....what I am trying to say is that their money goes twice to three times as far spent in the UK......why has our pound fallen so far when it used to be 1.45 euros to the pound right down to parity....now floundering around 1.13.......things bought from Europe just got more expensive...and it is not just Europe.....😉

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On 10/07/2018 at 17:44, Bland Unsight said:

From the report's summary (abridged)

Full report here.

From the report:

I haven't had a chance to read the full report yet, but it looks like it's worth a look

Would be interested to know your thoughts on the report BU.😉

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On 14/07/2018 at 14:38, winkie said:

That is a good thing is it not?....what I am trying to say is that their money goes twice to three times as far spent in the UK......why has our pound fallen so far when it used to be 1.45 euros to the pound right down to parity....now floundering around 1.13.......things bought from Europe just got more expensive...and it is not just Europe.....😉

Because we hand out massive amounts in welfare to people who arent productive.Go to any council estate and you will see almost every garden is stuffed with trampolines and slides all imported from China with pounds given to the people for free and then exchanged into dollars to buy the stuff.The government is doing what it has always done.Rather than deal with the issues in our economy they steal the middles wages and savings through inflation (or lack of increase in spending power when goods are deflating).My buying powers has remained steady from sterling being $1.60 because its been out of sterling mostly.However time to bring it back,sterling will rally 15% from here probably.

 

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Far more money wasted on pensioners, pensions and healthcare, as a bribe to vote Conservative.

An even more unproductive and useless part of society

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24 minutes ago, durhamborn said:

Because we hand out massive amounts in welfare to people who arent productive.Go to any council estate and you will see almost every garden is stuffed with trampolines and slides all imported from China with pounds given to the people for free and then exchanged into dollars to buy the stuff.The government is doing what it has always done.Rather than deal with the issues in our economy they steal the middles wages and savings through inflation (or lack of increase in spending power when goods are deflating).My buying powers has remained steady from sterling being $1.60 because its been out of sterling mostly.However time to bring it back,sterling will rally 15% from here probably.

 

Are there enough real productive jobs for everyone (in an ideal world all being fully able and fit in both mind, body and spirit)......do all people get paid relevant to their productivity?.....are some well paying jobs of low productivity or wasteful, are some very productive jobs unpaid or underpaid/valued?

Is spending money, consuming goods being productive, is it help keeping people in productive work?.......

Do unproductive people/people with needs create productive jobs?....

16 minutes ago, Peter Hun said:

Far more money wasted on pensioners, pensions and healthcare, as a bribe to vote Conservative.

An even more unproductive and useless part of society

Lots and lots of waste agreed.....all waste ends up in someones pocket.....not always in the right pockets........lets hope whoever has it they spend it back into the local community, not store it, hide it or export it.

Big business healthcare....creates lots of waste, creates lots of jobs also...hopefully healthy productive people will not need to use it very often, even better not at all, now that is not being very productive.;)

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I am extremely productive in my job in the sense that I get a lot done and definitely give my pound of flesh for my wages.

The problem is that the organisation I work for is so completely disorganised and without direction that I could literally do nothing at all and it wouldn't matter a jot.  No one would notice and nothing of any consequence would arise.

This is existentially difficult for me as on the one hand I feel good about being "productive" but I know that all my productivity is meaningless.

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5 minutes ago, stop_the_craziness said:

I am extremely productive in my job in the sense that I get a lot done and definitely give my pound of flesh for my wages.

The problem is that the organisation I work for is so completely disorganised and without direction that I could literally do nothing at all and it wouldn't matter a jot.  No one would notice and nothing of any consequence would arise.

This is existentially difficult for me as on the one hand I feel good about being "productive" but I know that all my productivity is meaningless.

for an example:.....given a job of work to do, a report and fact finding exercise....v.important taking a few people a good couple of weeks to plan and exercise.....not one person asked to see the findings, the conclusion of the results, apparently got a new plan of action, old news.....could be still filed somewhere or binned elsewhere, must be well out of date by now......it took a lot of work by a few people, was that productive work?.....who paid for that work, the person or persons that set the task?;)

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13 minutes ago, winkie said:

Are there enough real productive jobs for everyone (in an ideal world all being fully able and fit in both mind, body and spirit)......do all people get paid relevant to their productivity?.....are some well paying jobs of low productivity or wasteful, are some very productive jobs unpaid or underpaid/valued?

It always amazes me when I watch reality shows (I mean, just with public participation, eg Come Dine with Me, or A place in the Sun) I don't think I have ever seen a person with a useful productive job. Not that they're unemployed, they just have jobs that don't sound as if they are really contributing to making the world better.

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Somebody posted on here recently about a book that explained why most jobs are pointless.

If I remember rightly, my job fell into the category of "duct tape jobs" which is jobs that exist purely to fix problems that should never have been there in the first place (the example they gave was correcting bad coding that never should have been written like that).

My manager oversees an entire team of people like me, none of whom should be needed, but we are actually the vital team that keep the organisation functioning at it's current level of just-about-to-conk-out-creakiness.  If we didn't exist then neither would she so she is a duct-taper to the power of 2.

It's a weird thing to know and much better not to think about at all.

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11 minutes ago, stop_the_craziness said:

Somebody posted on here recently about a book that explained why most jobs are pointless.

If I remember rightly, my job fell into the category of "duct tape jobs" which is jobs that exist purely to fix problems that should never have been there in the first place (the example they gave was correcting bad coding that never should have been written like that).

My manager oversees an entire team of people like me, none of whom should be needed, but we are actually the vital team that keep the organisation functioning at it's current level of just-about-to-conk-out-creakiness.  If we didn't exist then neither would she so she is a duct-taper to the power of 2.

It's a weird thing to know and much better not to think about at all.

https://en.wikipedia.org/wiki/Parable_of_the_broken_window

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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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