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With the benefit of hindsight the strategy of stupidly low base rates by the worlds largest central banks was a huge mistake, creating massive asset bubbles which has then lead to dangerous levels of unsecured lending which will inevitably lead to chaos in the not to distant future. How will future generations judge them?

Will central banks learn from this or are we destined for boom bust economies forever, with banks being manipulated by short term thinking vote hungry governments?

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With the benefit of hindsight the strategy of stupidly low base rates by the worlds largest central banks was a huge mistake, creating massive asset bubbles which has then lead to dangerous levels of unsecured lending which will inevitably lead to chaos in the not to distant future. How will future generations judge them?

Will central banks learn from this or are we destined for boom bust economies forever, with banks being manipulated by short term thinking vote hungry governments?

I don't think the Banks will be judged in anyway by future generations. Banks will probably be just as important in society as they are now, and remember, they work within the laws governing the marketplace and are only a tool to allow people access to financial services.

Whilst I think the Banks could decide to act more ethically, they are PLC's and all they are interested in is shareholder wealth. At the end of the day, its people being prepared to pay what sellers are asking for their properties and the governments refusal to address some of the wider housing issues that is to blame (IMO) for the current mess.

People demand access to money and Banks supply. They basically fulfil a demand very efficiently!

AFP

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Guest mattsta1964

With the benefit of hindsight the strategy of stupidly low base rates by the worlds largest central banks was a huge mistake, creating massive asset bubbles which has then lead to dangerous levels of unsecured lending which will inevitably lead to chaos in the not to distant future. How will future generations judge them?

Will central banks learn from this or are we destined for boom bust economies forever, with banks being manipulated by short term thinking vote hungry governments?

The political parties are owned by the banks! The labour party is in debt too you know.....to the tune of £26million. It sells peerages to spivs to finance itself.

All our national government does is pass laws to destroy our freedoms and devise ever more devious ways to tax people out of existence.

It's not a mistake for the banks to have lent money so recklessly. Even if a large percentage of people default on their payments, they'll still bring in enough to line their own pockets. Society however will be f****d. Democracy in the true sense of the word is well and truly dead. Get out while you can

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The political parties are owned by the banks! The labour party is in debt too you know.....to the tune of £26million. It sells peerages to spivs to finance itself.

All our national government does is pass laws to destroy our freedoms and devise ever more devious ways to tax people out of existence.

It's not a mistake for the banks to have lent money so recklessly. Even if a large percentage of people default on their payments, they'll still bring in enough to line their own pockets. Society however will be f****d. Democracy in the true sense of the word is well and truly dead. Get out while you can

Dude, a short post but some seriously complex subjects mixed up in there! Remember that people used to refer to Labour as leaving the left and moving to where the conservatives used to be on the right. :ph34r: I agree about reduced freedomes and tax. We have a government that promotes itself as having socialist value but with conservatives motivations whilst at the same time acting scarily communistic.

Democracy has been 'redefined' rather than killed, and the big problem is that, whilst millions acknowledge all the problems, where do we "Get out while you can". Is there a 'while you can' for most people? And where do we go?

AFP

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Dude, a short post but some seriously complex subjects mixed up in there! Remember that people used to refer to Labour as leaving the left and moving to where the conservatives used to be on the right. :ph34r: I agree about reduced freedomes and tax. We have a government that promotes itself as having socialist value but with conservatives motivations whilst at the same time acting scarily communistic.

Democracy has been 'redefined' rather than killed, and the big problem is that, whilst millions acknowledge all the problems, where do we "Get out while you can". Is there a 'while you can' for most people? And where do we go?

AFP

Just because you can wave a placard on Hyde Park corner or listen to Dimbleby and a bunch of politicians duck questions on the TV and radio doesn't mean we live in a democracy anymore. Ok, So you can't be arrested for disagreeing with your government YET, (Unless you try it within 1000 metres of Westminster LOL) but I'm sorry. I think democracy is dead in the UK. Ironically, it is the tolerance, good nature (and apathy) of the vast majority of British people which has led to the debasement of parliament and the erosion of our freedoms. It's very very sad. We've sleptwalked into this mess because nobody will protest anymore or stand up for what they think is right. I speak of the many serious issues apart from houseprices. There is a climate of fear about expressing perfectly valid arguements relating to very important issues; 'open door' immigration for example. You cannot even suggest their might have been a better way to handle the situation without being accused of racism. I find that deeply upsetting. What about council tax? The only people brave enough to fight fire with fire have been a few pensioners. The atmosphere of suppressed frustration, anger and seething resentment is palpable. If there is a serious recession and people start losing their homes, What are people going to do I wonder? Sit in their Red Cross tent eating their bowls of gruel? Or is there going to be serious social unrest? Some people on here think our country could sink into anarchy if we feel the full force of a depression. I agree with them, and I'm going to make sure I'm not here when it happens.

As for where to go? Well I'm single with no children, so i suppose that gives me options others might not have. I'll probably stay in Europe, but somewhere where 25% of the population aren't borderline illiterate thugs.

Oh.......... And for the I'm Alright Jacks of this forum, having a bag of gold and silver coins wont mean doodly squat!

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Just because you can wave a placard on Hyde Park corner or listen to Dimbleby and a bunch of politicians duck questions on the TV and radio doesn't mean we live in a democracy anymore. Ok, So you can't be arrested for disagreeing with your government YET, (Unless you try it within 1000 metres of Westminster LOL) but I'm sorry. I think democracy is dead in the UK. Ironically, it is the tolerance, good nature (and apathy) of the vast majority of British people which has led to the debasement of parliament and the erosion of our freedoms. It's very very sad. We've sleptwalked into this mess because nobody will protest anymore or stand up for what they think is right. I speak of the many serious issues apart from houseprices. There is a climate of fear about expressing perfectly valid arguements relating to very important issues; 'open door' immigration for example. You cannot even suggest their might have been a better way to handle the situation without being accused of racism. I find that deeply upsetting. What about council tax? The only people brave enough to fight fire with fire have been a few pensioners. The atmosphere of suppressed frustration, anger and seething resentment is palpable. If there is a serious recession and people start losing their homes, What are people going to do I wonder? Sit in their Red Cross tent eating their bowls of gruel? Or is there going to be serious social unrest? Some people on here think our country could sink into anarchy if we feel the full force of a depression. I agree with them, and I'm going to make sure I'm not here when it happens.

As for where to go? Well I'm single with no children, so i suppose that gives me options others might not have. I'll probably stay in Europe, but somewhere where 25% of the population aren't borderline illiterate thugs.

Oh.......... And for the I'm Alright Jacks of this forum, having a bag of gold and silver coins wont mean doodly squat!

i do and don't agree with the pointsyou have made.

.....you raise a good point about open door immigration.it does damage our own personal wealth(unless you are/own/run a business).

...the flip-side of that is these new migrants were in what we would call poverty,so why begrudge them the chance to better themselves and their families?

I take a lot more issue with chav kids who lay about and drink tennents super in the park out of their giro and illicit drug-money...They are the ones who should be MADE to work rather than inviting in immigrants to sustain THEM.

it would be just as effective stopping their benefits after 3 months...with a rolling period of employment reqired to regain said benefits.Same should apply to gymslip mums!!!...that'd sort irresponsible sex/std's/teenage pregnancy out.

Just because you can wave a placard on Hyde Park corner or listen to Dimbleby and a bunch of politicians duck questions on the TV and radio doesn't mean we live in a democracy anymore. Ok, So you can't be arrested for disagreeing with your government YET, (Unless you try it within 1000 metres of Westminster LOL) but I'm sorry. I think democracy is dead in the UK. Ironically, it is the tolerance, good nature (and apathy) of the vast majority of British people which has led to the debasement of parliament and the erosion of our freedoms. It's very very sad. We've sleptwalked into this mess because nobody will protest anymore or stand up for what they think is right. I speak of the many serious issues apart from houseprices. There is a climate of fear about expressing perfectly valid arguements relating to very important issues; 'open door' immigration for example. You cannot even suggest their might have been a better way to handle the situation without being accused of racism. I find that deeply upsetting. What about council tax? The only people brave enough to fight fire with fire have been a few pensioners. The atmosphere of suppressed frustration, anger and seething resentment is palpable. If there is a serious recession and people start losing their homes, What are people going to do I wonder? Sit in their Red Cross tent eating their bowls of gruel? Or is there going to be serious social unrest? Some people on here think our country could sink into anarchy if we feel the full force of a depression. I agree with them, and I'm going to make sure I'm not here when it happens.

As for where to go? Well I'm single with no children, so i suppose that gives me options others might not have. I'll probably stay in Europe, but somewhere where 25% of the population aren't borderline illiterate thugs.

Oh.......... And for the I'm Alright Jacks of this forum, having a bag of gold and silver coins wont mean doodly squat!

i do and don't agree with the pointsyou have made.

.....you raise a good point about open door immigration.it does damage our own personal wealth(unless you are/own/run a business).

...the flip-side of that is these new migrants were in what we would call poverty,so why begrudge them the chance to better themselves and their families?

I take a lot more issue with chav kids who lay about and drink tennents super in the park out of their giro and illicit drug-money...They are the ones who should be MADE to work rather than inviting in immigrants to sustain THEM.

it would be just as effective stopping their benefits after 3 months...with a rolling period of employment reqired to regain said benefits.Same should apply to gymslip mums!!!...that'd sort irresponsible sex/std's/teenage pregnancy out.

as to the "allright jacks",of which I am one...I do what I can to protect my family and my standard of living....everyone is in the same boat....even the gymslip mums and chavs mentioned above will when push comes to shove....all at someone elses expense I might add.

...personally I'd rather f*** off to thailand or somewhere cheap than suffer the robberies/muggings etc that will happen when the shit hits the fan here.

the real twisted irony about this is there are complaints of a police-state now,what the hell do you think it will be like when REAL unrest kicks off,the public will be BEGGING for "hang 'em high" policies.

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If CBs lower or maintain current interest-rate levels, homeowners will have their debt eroded by inflation.

If they raise them and remove liquidity, there will be a redistribution of wealth, with those who purchased near the top of the cycle suffering for their lack of prudence - Darwinism in action and healthy for the overal economy, in my opinion.

How CBs are 'judged' will depend on your perspective - if you are a homeowner or not. In the first scenario, if the borrower can maintain the repayments, he/she will judge the CBs actions as favourable. If not, the blame game starts and the borrower is fooked.

I would imagine that those here who have not bought into the Ponzi scheme that owning a home has become would judge the CBs very favourably, as the CBs are inflating the money supply to such a degree that inflation will inevitably result in higher interest rates.

What I don't understand is why the regulators are not raising the bank reserve requirements to curtail excessive lending, if raising interest rates is such a hot political potato.

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Guest mattsta1964

If CBs lower or maintain current interest-rate levels, homeowners will have their debt eroded by inflation.

If they raise them and remove liquidity, there will be a redistribution of wealth, with those who purchased near the top of the cycle suffering for their lack of prudence - Darwinism in action and healthy for the overal economy, in my opinion.

How CBs are 'judged' will depend on your perspective - if you are a homeowner or not. In the first scenario, if the borrower can maintain the repayments, he/she will judge the CBs actions as favourable. If not, the blame game starts and the borrower is fooked.

I would imagine that those here who have not bought into the Ponzi scheme that owning a home has become would judge the CBs very favourably, as the CBs are inflating the money supply to such a degree that inflation will inevitably result in higher interest rates.

What I don't understand is why the regulators are not raising the bank reserve requirements to curtail excessive lending, if raising interest rates is such a hot political potato.

What regulations are there for bank reserve requirements? Does any such thing exist?

It's reckoned they are lending at a ratio of 30:1 what they have in reserve with corresponds with the percentage of 'debt' money in the economy, around 97%. Financial prudence? I think not!

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Maybe I wasn't clear, I'm talking about the FED, BoE and ECB all lowering base rates far below where they should have.

You were quite clear. Central banks you said and central banks you meant. Ignore the dross talking at cross purposes.

However why do you lump BofE in with FED and ECB as a central bank that lowered rates too low? BofE rates were significantly higher than both FED and ECB for a long time. Hence why many analysts don't expect huge numbers of rises in the future. If BofE got it right by not slashing rates too low they might also have an easier task in not increasing too much. The UK economic pendulum is not swinging wildly so small nudges should now be sufficient.

My view (and of course you'll claim I'm a cretin and not worth listening to) is that the majority of analysts expect 2 or maybe 3 small rises over the next 2 years. Beyond that it's a guessing game anyway. There are still a few analysts who expect no rises at all, some expect falls.

Only if we have 2 rate rises in quick succession will public sentiment change. BofE are acutely aware of the damage fast changing sentiment can do to the economy as a whole. Thus they will do all they can to prevent this. I expect the next rise to be earlier than many of the more doveish analysts expect purely for this reason only.

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yes ignorant cretin, off on a tangent

And, in a nutshell, why you'll never learn.

Blinkered.

Your original post was just designed to elicit responses from likeminded individuals in agreement with you.

Shame most of them were too stupid to know what you were referring to.

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After the future economic collapse.

The central banks will no doubt be allowed to judge themselves.

To write the history of what happened, and why.

Look back at any economic crisis that has occured in the last 100 years.

The Great Depression, German Hyperinflation, reading mainstream

literature it is virtually impossible to get a convincing answer as to why these

terrible events actually happened.

They always stick to the "random chance" theory,

and argue that it means the financial system needs to

be centralised further.

That is more than likely how they will play it,

argue for greater centralisation of world banking.

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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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