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Mew Could Lead To Spiraling Debts!

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Short article but nicely pointed out the risks of MEWing. Mentioned that the FSA have recently criticised sales advisors for not pointing out the risks in these schemes. Article focused on two 'older' ladies who have each owned their houses for 30 years. One decided to MEW - A - and one decided to downsize - B...

A borrowed £50,000 against the value of her house about three and a half years ago. Wasn't told that the interest payable on this worked out to be about £10 per day and the loan is now a total of £64,500. This means that, if not paid off quickly, a £50,000 loan could turn into a £100,000 amount in ten years (double) and £200,000 in twenty years (quadruple)! :oA is struggling to pay off the debt and says it's the worst financial decision she's ever made. Most of any inheritance she may wish to leave her children will instead end up going to the bank!!!

B decided instead to downsize, took the £80k profit from the houe and stuck it into the bank ready to give to her children. End os story! :)

Unbelievably the VIs interviewed were still saying MEW is a great way of benefiting from the increased 'paper' value of your house and the market is about to take off!!! :o:blink:

Not a particularly long article, but another warning to Joe Public in the mainstream media that all might not be as rosey in the months/years to come as they've got used to so far!

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Not a single mention of rising inflation in the report - the MAIN reason why these vunerable groups are MEWing - to LIVE....

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The more MEW money that is dumped on the market and economy the more inflation will rise - raising the need for many to MEW in the first place.

Looks like an intentional gambit by the banks/debt industry to create additional mortgage and debt growth/churn.

The BOE is at the head of the parasitic debt industry, it has the ability to enourage runaway inflation. I believe it is intentially doing so,

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The BOE is at the head of the parasitic debt industry, it has the ability to enourage runaway inflation. I believe it is intentially doing so,

The use of CPI as a measurement tool should be a big indicator that this is their choosen policy ATM

The only reason to hide inflation is to surpress wages and interest rates

BOE's mistake was to underestimate peoples borrowing/spending

They thought people would moderate their spending in line with their surpress incomes

They never dreamed that people would borrow just to LIVE (?) day-to-day in a high inflation environment...

Edited by dnd

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The BOE is at the head of the parasitic debt industry, it has the ability to enourage runaway inflation. I believe it is intentially doing so,

I believe that too.

More £'s =

lower currency value =

massive shift of wealth from West to East =

Increase in the West's competitiveness in manufacturing =

New economic balance.

DELIBERATE.

You just have to live with the inflation and asset bubbles that manifest themselves during the transition.

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Increase in the West's competitiveness in manufacturing =

You saying that the West want's to take manufacturing on again?

I thought we had shifted that abroad/East years ago?

We generate most of our income through service industries now

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A good example of why never to MEW...

We took out a £39,000 loan with first plus and have made 50 month's worth of payments at £500 a month. We have never missed a payment and wish to start overpaying so that we can clear it (it was taken out over 15 years). I phoned to get a balance and the loan still stands at £35,000 after £25,000 of payments.

http://forums.moneysavingexpert.com/showthread.html?t=235314

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I believe that too.

More £'s =

lower currency value =

massive shift of wealth from West to East =

Increase in the West's competitiveness in manufacturing =

New economic balance.

DELIBERATE.

You just have to live with the inflation and asset bubbles that manifest themselves during the transition.

Agree.

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"Mew Could Lead To Spiraling Debts!" , BBC Breakfast News

If this really was the tenor of the beeb packet, one can only conclude that beeb editors have become detatched from financial reality: MEW IS a spiralling debt, forget the "could lead" balls. What the hell do they think rolled up debts are anyway? Then again, perhaps they don't even consider MEW a debt in the first place? .... just perhaps they don't even think (at a subconscious level) a mortgae is a debt .... Now, I wonder how many there are of those types around, eh?

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I believe that too.

More £'s =

lower currency value =

massive shift of wealth from West to East =

Increase in the West's competitiveness in manufacturing =

New economic balance.

DELIBERATE.

You just have to live with the inflation and asset bubbles that manifest themselves during the transition.

Seems like a reasonable plan, as opposed to doing nothing and kidding ourselves that western living standards should magically remain higher than everywhere else.

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You saying that the West want's to take manufacturing on again?

I thought we had shifted that abroad/East years ago?

We generate most of our income through service industries now

I agree with that as well.

Manufacturing, exportable service, whatever. As long as we can be competitive globally and "add value", that's all that matters. And unfortunately, in the last decade, the East has been much more capable of being all those things than the West has.

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So, the 'plan' all along was to devalue the currency to make manufacturing more competitive?

C'mon - do you really think that? - our manufacuring industry is decimated - what's the point?

Edited by dnd

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Australia, the UK, the US are all running deficits with the manufacturing and oil giants. I believe that they are attempting to inflate there way out of this debt by printing as much currency as the markets will bear. The deflationary impact of 75c an hour labour is massive. The only question is how long will the Chinese etc. accept Western paper for their labour and commodities?

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I agree with that as well.

Manufacturing, exportable service, whatever. As long as we can be competitive globally and "add value", that's all that matters. And unfortunately, in the last decade, the East has been much more capable of being all those things than the West has.

Global 'equalisation' thorugh currency devaulation?

No wonder GB wants to keep our wages surpressed

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We spoke to an FSA on Thursday with regards to tax efficent savings for school fees, first question how much is your house worth ? Me why, well because equity release would be the best solution. I can't do that, oh ... followed by silence.

FSA's have been brain washed and know of no other financial services it seems.

Edited by terrified

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The only question is how long will the Chinese etc. accept Western paper for their labour and commodities?

Precisely. But they don't really "accept" them any more anyway, do they? They're straight out, shopping with dollars for US and UK industries and property. You can't lose accepting "rubbish" currencies if you buy assets denominated in those currencies... they're hard, tangible, and you can rest assured you own a little more of the world than you did before.

Edited by bluenun

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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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