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5% Mortgage Guarantee Confirmed


rantnrave
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7 minutes ago, zugzwang said:

The euro accounts 20% of the world's currency reserves, up a couple points since 1999. The USD accounts for 60%, down 10% since 1999. No other currency accounts for more than 5% of the market. A fully convertible renminbi might emerge as a challenger at some point in the future.

The volume and liquidity of fixed income markets are the crucial factors in determining a currency's importance as a reserve asset. The euro has been something of a laggard in that respect, especially at the short end. The support packages for Covid-19 and the Next Generation EU initiatives will add at least €1 trillion to the stock of euro denominated debt in circulation in the short term. Longer term, net-zero carbon by 2050 and the Green Industrial Revolution will require huge amounts of funding.

The euro's prospects have never looked brighter!

 

https://fullfact.org/europe/eu-has-shrunk-percentage-world-economy/

European finance banking has been falling back from world trade since 2010

https://hbr.org/2017/09/as-european-banks-retreat-from-the-world-stage-china-is-stepping-up

The EU held as reserves is just to cover trade within Europe.

EU banks are just not present  on the world stage. They are barely present in other EU countries.

Its quite remarkable as you look at the figures and the future direction.

Its v similar to Japanese banks in the early 90s.

 

 

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Shows how much the Tory party and our property owning MPs really care about the free market. The moment that market forces even hint at pushing down house prices, the government introduces another subsidy to prop them up.

At this point the situation is an utter joke, the subsidies and special measures for the housing market are endless. This has nothing to do with helping first time buyers. First time buyers would benefit far more from a crash, than measures to keep the bubble inflated.

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6 minutes ago, bartelbe said:

Shows how much the Tory party and our property owning MPs really care about the free market. The moment that market forces even hint at pushing down house prices, the government introduces another subsidy to prop them up.

At this point the situation is an utter joke, the subsidies and special measures for the housing market are endless. This has nothing to do with helping first time buyers. First time buyers would benefit far more from a crash, than measures to keep the bubble inflated.

Your post sums up this site. Best to ignore housing, don't get involved, and let the crazed masses fight it out for a while. They'll wake up after they've bought, and realise they've been played. Just like everyone who has been piling in for some countryside space once the government incentivises the return to work 

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1 minute ago, Trump Invective said:

Okay then you got me - 10% drops by xmas

I basically just don't know. It's complicated to say the least. Seems very wrong to put taxpayer's money on the line over it though.

Edited by Si1
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Just now, Trump Invective said:

Your post sums up this site. Best to ignore housing, don't get involved, and let the crazed masses fight it out for a while. They'll wake up after they've bought, and realise they've been played. Just like everyone who has been piling in for some countryside space once the government incentivises the return to work 

Trouble is though people have been saying that for years. If house prices were based on market forces, they would have crashed an age ago.

The market is being rigged by government and central bank policy. A combination of subisidies and absurdly low interest rates and I can't see that ever ending.

Will the bubble crash? Yes, all asset bubbles do, however much governments intervene. The problem is, it could be another decade or more till it happens.

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Just now, Si1 said:

I basically just don't know. It's complicated to say the least.

It is!!! The appeal to sentiment is straightforward, but people's individual circumstances are complex. I don't think a tired old scheme cooked up ages ago is going to fool anyone. Look at the comments section on any of the articles covering this, and everybody knows its a scam.

 

Anyone buying should aim to collectivise and say yes we will take advantage of your daft scheme, but we are only paying 75% what sellers are asking for tops. Will never happen of course because people seem to love being ripped off in this country 

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1 hour ago, satsuma said:

I suppse BJ will connect the hose to Hong Kong and turn the tap on.  They always find a cheap fix to bodge a repair to the broken system.  Sky high prices will be nothing new to these people.  Get that printer going.  

Already in motion.

https://www.reuters.com/article/us-hongkong-britain-property/hong-kongers-snap-up-uk-homes-and-do-what-they-excel-at-being-landlords-idUSKBN2AP0JV?il=0

 

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15 minutes ago, Trump Invective said:

Anyone buying should aim to collectivise and say yes we will take advantage of your daft scheme, but we are only paying 75% what sellers are asking for tops. Will never happen of course because people seem to love being ripped off in this country 

I've been taking advantage of the HTB ISA, probably since its inception. Max £200 PCM you can put in. Interest rate was around 4% at the beginning, now it's 1%. I now have a grand total of £14,000 in there. House prices have probably risen that much in the past year, entirely down to the stamp duty holiday that I've also subsidised through my taxes.

Edited by Eddie_George
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4 minutes ago, Eddie_George said:

I've been taking advantage of the HTB ISA, probably since its inception. Max £200 PCM you can put in. Interest rate was around 4% at the begining, now it's 1%. I now have a grand total of £14,000 in there. House prices have probably risen that much in the past year, entirely down to the stamp duty holiday that I've also subsidised through my taxes.

Me too - you get 3k and my partner can get 3k too. Pathetic really that that is the only viable cash option for savers

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1 hour ago, Si1 said:

In that case democracy's pointless because you don't get to give the current lot a kicking. The changing of the guard can be a good thing for its own sake.

I think that, for the housing market, parliamentary terms are far too short. If a government is voted in and wants to tackle high prices, a crash will have not fed through the system in 5 years for them to safely be re-elected.

I'm not saying that terms should be increased, but the UK economy really needs to decouple from the housing market. In the US, 25 year fixed-term mortgages are the norm. Fannie May et al. aside, perhaps that's wise.

Edited by Eddie_George
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5 minutes ago, Eddie_George said:

I've been taking advantage of the HTB ISA, probably since its inception. Max £200 PCM you can put in. Interest rate was around 4% at the begining, now it's 1%. I now have a grand total of £14,000 in there. House prices have probably risen that much in the past year, entirely down to the stamp duty holiday that I've also subsidised through my taxes.

Plus if you don't buy by 2030, no bonus. That is a realistic prospect for most people, because who is gonna buy?

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15 minutes ago, spyguy said:

https://fullfact.org/europe/eu-has-shrunk-percentage-world-economy/

European finance banking has been falling back from world trade since 2010.

 

The 2012-17 sovereign debt crisis was responsible for that.

But Brexit and the pandemic have changed everything. The absence of the UK in negotiations has shifted the political centre of gravity across Europe and allowed the Franco-Germans to regain the lead. In doing so Germany has switched sides, moving away from the Northern camp and closer to the South.

Building international support for the euro has always been a French ambition to which the Germans appear now to be fully committed.

 

 

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22 minutes ago, bartelbe said:

Trouble is though people have been saying that for years. If house prices were based on market forces, they would have crashed an age ago.

The market is being rigged by government and central bank policy. A combination of subisidies and absurdly low interest rates and I can't see that ever ending.

Will the bubble crash? Yes, all asset bubbles do, however much governments intervene. The problem is, it could be another decade or more till it happens.

Yes.

You can't fight a wall of money that high and you can't get out of the game! Even as a renter you're contributing to the Ponzi scheme. And don't hold your breath waiting for the flood of immigrants to retreat. 300,000 HK Chinese is just the starter.

Tragically, 2012 was the time buy. Might not see another for a generation. And then only after the UK is declared bankrupt.

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23 minutes ago, Eddie_George said:

I thought Germany had been the main beneficiary of the Euro. The relatively weak Euro compared to the Mark had helped its exports immensely.

Up until the GFC, yes. But the sovereign debt crises in Greece, Italy and Spain cost the Germans dearly.

They've become much more pro-European in spirit as a consequence of that experience, and the Northern camp without Germany has fractured.

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