Daily Mail: Bank of England considering easing mortgage lending rules.

[henry the king]

I wouldn't be worried about this sort of thing. Even if they relax the rules, the banks probably won't do it anyway. They are getting sceptical of asset prices and memories from 2008 remain.

[Roman Roady]

Is anyone on this forum really surprised at this?

This is what they want to do, they want a debt jubilee via inflation. Its the only card they have left to play, the question is can they get away with it?

Personally I dont think so.

The UK is not well placed in the G7...or is it even well placed in the top 10 economies? The BoE dont have the clout to influence what is coming.

[leangains]

2 hours ago, Roman Roady said:

 Its the only card they have left to play,

How many times do you think that sentence has been used to refer to a different scheme of the governments on this forum?

[spyguy]

11 hours ago, Roman Roady said:

Is anyone on this forum really surprised at this?

This is what they want to do, they want a debt jubilee via inflation. Its the only card they have left to play, the question is can they get away with it?

Personally I dont think so.

The UK is not well placed in the G7...or is it even well placed in the top 10 economies? The BoE dont have the clout to influence what is coming.

In terms of the price of money, the BE is a price taker not a price maker.

With a large current account deficit, very high government debt, the BoE has to stay above the FED rate to stop the pound falling and infaltion shooting up.

 

 

[locky82]

It’s was inevitable really and to be fair if rates stay low won’t be a long term issue. I can afford to repay far more than 4.5x salary. It’s if rates move… which they won’t! 

Edited November 15, 2021 by locky82

[winkie]

23 hours ago, Mikhail Liebenstein said:

This pushes everything up.

It is inflation, and the next generation thinks those prices are normal. Of course, where the problem lies is that overall wages haven't increased much in the last 25 years.

My first proper job out of University put me on £35k in 1997. Nearly quarter of a century ago, that figure is still £1k more than the UK national average wage.

Quite shocking really.

Wages including other in work benefits Inc bonuses, pensions,sick and holiday pay, overtime etc have not kept up with inflation, many now are expected to work excess hours for free, some are emailed about work in their own time...... deflation of interest rates paid for debt, and a push to forever lend more money into the economy has seen there is more debt outstanding than real growth and prosperity......one minute we are in austerity the next spend,spend,spend.........kicking the debt down the road to the next generation.

Once most did not go to university, now most have that debt at high interest to pay on top of everything else......many will never repay it.........many business loans will never be repaid.

[wighty]

17 hours ago, TheCountOfNowhere said:

Ive been saying for a while, Britain now has a US 2006 style sub-prime House price bubble. Dunno what will kick off the collapse in prices but collapse will come. 

You've been touting this view for a lot longer than a while. If a collapse does come, it'll be to a level far higher than most of those you've said will collapse.

Prices will correct, or level out, after the lockdown madness. But they will recover when the next "madness" occurs - and it will.

[TheCountOfNowhere]

28 minutes ago, wighty said:

You've been touting this view for a lot longer than a while. If a collapse does come, it'll be to a level far higher than most of those you've said will collapse.

Prices will correct, or level out, after the lockdown madness. But they will recover when the next "madness" occurs - and it will.

No, that's not true, I've not mentioned a US style UK sub-prime bubble before, but that's what it's looking like now. .  The UK has gone down the Fannie-Mae/Freddie Mac sub-prime model in recent years and it has created a similar sub-prime bubble that collapsed the US banking system.  

https://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp

The collapse of this madness is unavoidable, everyone knows it.  The only unknow is what/how it will take down when it goes.

[Pebbles]

6 hours ago, spyguy said:

In terms of the price of money, the BE is a price taker not a price maker.

With a large current account deficit, very high government debt, the BoE has to stay above the FED rate to stop the pound falling and infaltion shooting up.

 

 

Lol you have far too much confidence in that, that hasn't really been born out by reality over the last 14 years. Throughout my time on this forum you have been one of the key people saying the powers have things under control to the detriment of house prices e.g. MMR and since this glorious piece of regulation house prices have rocketted. Forgive my very large skepticism over the above statement.

[spyguy]

Just now, Pebbles said:

Lol you have far too much confidence in that, that hasn't really been born out by reality over the last 14 years. Throughout my time on this forum you have been one of the key people saying the powers have things under control to the detriment of house prices e.g. MMR and since this glorious piece of regulation house prices have rocketted. Forgive my very large skepticism over the above statement.

Never said that.

I think MMR is a good thing, that brings back the implicit lending rules post Brown.

I dont think UKGOVBoE have managed to mop up 50% of Browns fked up credit boom.

I think UKGOV/BoE are pushing their luck on being able to continue borrowing at low low rates. Eventually that was always goign to end.

I think gvoernments hsould be kept on a very tight lease.

I think macro economists are bunch of morons.

 

 

 

[Si1]

2 hours ago, Pebbles said:

Lol you have far too much confidence in that, that hasn't really been born out by reality over the last 14 years. Throughout my time on this forum you have been one of the key people saying the powers have things under control to the detriment of house prices e.g. MMR and since this glorious piece of regulation house prices have rocketted. Forgive my very large skepticism over the above statement.

MMR and section 24 have been completely overridden by Central Bank stimulus.

[spyguy]

1 hour ago, Si1 said:

MMR and section 24 have been completely overridden by Central Bank stimulus.

S24 is a different thing altogether - tax.

MMR hasnt as it still stress tests at 6%.

 

[Si1]

11 minutes ago, spyguy said:

 

MMR hasnt as it still stress tests at 6%.

 

Not for BTL though??

[Flat Bear]

22 hours ago, Roman Roady said:

Is anyone on this forum really surprised at this?

This is what they want to do, they want a debt jubilee via inflation. Its the only card they have left to play, the question is can they get away with it?

Personally I dont think so.

The UK is not well placed in the G7...or is it even well placed in the top 10 economies? The BoE dont have the clout to influence what is coming.

My thoughts exactly

[winkie]

Yeap, others will act, we will follow.

[wighty]

10 hours ago, TheCountOfNowhere said:

No, that's not true, I've not mentioned a US style UK sub-prime bubble before, but that's what it's looking like now. .  The UK has gone down the Fannie-Mae/Freddie Mac sub-prime model in recent years and it has created a similar sub-prime bubble that collapsed the US banking system.  

https://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp

The collapse of this madness is unavoidable, everyone knows it.  The only unknow is what/how it will take down when it goes.

Politician's reply.

So you are saying you've not continuously forecast HPC over the past many years.

[petetong]

On 14/11/2021 at 07:16, Glenn said:

That won't end well once there's rise in interest rates.

I can't believe interest rates will go up anymore, it will be a token gesture at most. This is the new way, ultra low interest rates, if not negative rates and cheap cheap debt, debased currency. 

[TheCountOfNowhere]

9 hours ago, wighty said:

Politician's reply.

So you are saying you've not continuously forecast HPC over the past many years.

I've personally only been here about a year, so no.    You yourself have only been here since May 2020 so it's odd that you think that.

I've been forecasting an almighty collapse of the £, more QE, -ve rates, money becoming worthless and the establishment owning everything.

I've also been saying people might want to consider buying a house in the new year with a large mortgage.

You seem, a bit confused.

Edited November 16, 2021 by TheCountOfNowhere

[Mikhail Liebenstein]

On 13/11/2021 at 22:53, ARENAPUA said:

5.5 x Salary....

I think they are hoping to push the 30-34 and 35-39 demographics bands into buying, and 5.5x is the only way.

There is a small demographic bulge coming up after GenX with the Millennials  and after that there is a big decline.

[wighty]

1 hour ago, TheCountOfNowhere said:

I've personally only been here about a year, so no.    You yourself have only been here since May 2020 so it's odd that you think that.

I've been forecasting an almighty collapse of the £, more QE, -ve rates, money becoming worthless and the establishment owning everything.

I've also been saying people might want to consider buying a house in the new year with a large mortgage.

You seem, a bit confused.

You're the confused one.

"I've personally only been here about a year, so no." Check your profile - you joined 2007 and 35,000 posts!

"You yourself have only been here since May 2020". I joined in 2008 under a different name.

 

Again, are you saying you've not continuously forecast HPC over the past many years?.

Edited November 16, 2021 by wighty

[TheCountOfNowhere]

53 minutes ago, wighty said:

You're the confused one.

"I've personally only been here about a year, so no." Check your profile - you joined 2007 and 35,000 posts!

"You yourself have only been here since May 2020". I joined in 2008 under a different name.

 

Again, are you saying you've not continuously forecast HPC over the past many years?.

Troll on.

[Timbuk3]

Good article here about the situation. I think we already realise this is the case.

https://www.cityam.com/perpetual-debt-is-already-here/

[Twenty Something]

@wighty it is a long and confusing story, but the above rant by @TheCountOfNowhere alongside the usual you’re a troll remarks made me think back to the below from earlier this year. Sometime around 2017 I think from memory he was drinking champagne having brought a large house in France somewhere - palatial of course, 3 acres of land, swimming pool perhaps. This is the first time that someone ‘took over his account’ to carry on the good work. Then, as per the below post that person was posting from about the back end of 2018 / into 2019 because of ‘the CV19’. Now of course you have the response that he has only been posting for about a year, so I suppose that yet another person has taken over the username!? It gets to a point where the word farcical doesn’t really do it justice…

On 09/04/2021 at 18:06, TheCountOfNowhere said:

Total total bull***t someshine.

TCON was off this site till around 18 months ago and started posting because of the CV19.  TCON was about the only person this time last year that said prices were going to shoot up off the back of 0.1% IRs and the term funding scam.

If you're going to lie, dont do it on a public forum where everything can be cross referenced and check.

If you're trying to discredit someone at least make it plausible.

You've embarrassed yourself, and proven that in fact you are a troll idiot.

Sulk off you little weasel.

There's been a troll or two on this forum for years that have had it in for the TCON.  It's just plain f**king weird and ever slightly sinister.

I'm certainly saying now that we'll see prices fall, the prices are extreme now and there will be no economic bounce, any inflation will destroy peoples ability to pay their debts.

We will hopefully see a deflationary event but if wages start to rise sharply then do yourself a favour and buy a house sharpish.

Meanwhile, tell the trolls to **** off, pathetic little weasels.

 

[wighty]

1 hour ago, Twenty Something said:

@wighty it is a long and confusing story, but the above rant by @TheCountOfNowhere alongside the usual you’re a troll remarks made me think back to the below from earlier this year. Sometime around 2017 I think from memory he was drinking champagne having brought a large house in France somewhere - palatial of course, 3 acres of land, swimming pool perhaps. This is the first time that someone ‘took over his account’ to carry on the good work. Then, as per the below post that person was posting from about the back end of 2018 / into 2019 because of ‘the CV19’. Now of course you have the response that he has only been posting for about a year, so I suppose that yet another person has taken over the username!? It gets to a point where the word farcical doesn’t really do it justice…

 

Ha ha. Why do I bother with these doom laden guys?.

Hope he's having luck with his French mansion now we've Brexit.

[Twenty Something]

24 minutes ago, wighty said:

Ha ha. Why do I bother with these doom laden guys?.

Hope he's having luck with his French mansion now we've Brexit.

It’s alright. He’s coining in 20k a month on oil shares alone alongside having to offshore millions to avoid taxation, or was that the count number one or two? I can never get it right.