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The Masked Tulip

Living On Borrowed Time

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Just watched an interesting Budget 2008 item on Sky News by Michael Wilson, their Business guy, looking at all the debt that the UK has. Pointed out the obvious - that Brown needs the Public to keep spending in order to get taxes but that the UK Public are now living on borrowed time re debt.

Nothing new in there for HPCers but great to see such a negative view of debt, housing and the economy on a mainstream channel.

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Guest vicmac64

Well done to the reverend gentleman who was playing his part against debt and usury.

This was a bearish programme big time - surprised sky gave it an airing.

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Michael Wilson appears to have been a closet bear for some time but methinks he has come out of late. This morning he was talking about the 100 billion central bank funding and said that whilst it was boosting the markets he was of the opinion that perhaps the central banks know something that the rest of us don't know.

Hi Michael, if you are here. I have a suspicion that you are. If so, keep up the good work. It is good to have business journalists on the telly who actually say it like it is and who do not simply churn out Government press releases.

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Halifax research estimates:

The number of FTBs is at its lowest since 1980. An estimated 300,000 first time buyers entered the market in 2007 - 44% less than in 2002 (532,000).

The average deposit put down by a FTB was £34,381 in 2007 - an 88% increase over the past five years.

The average FTB deposit was 20% higher than UK average full-time earnings of £28,590 in 2007.

FTBs cannot afford to purchase a terraced property - traditionally the least expensive property type - in 71% of towns across the UK (322 out of 454). This stood at 11% in 2002.

Shocking. Utterly shocking.

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Shocking. Utterly shocking.

Its shocking that people have been paying it and expecting it to all be fine. I am so thankful we havent bought in the last couple of years, the news which is now mainstream must be absolutely terrifying if you have a massive mortgage and no illusion of constant hpi.

A couple I know bought in an unfashionable commuter town last year. Theyre miles from the station and paid over £180,000 for a 3 bed terrace. Seemed perfectly sensible then but then if you start looking at falls back to 2002 (previously unthinkable) and the drops are massive.

They were saying that if prices fall they'll still be able to upgrade as the next place will be cheaper, it seems they didnt understand what negative equity means when they took out their mortgage though. Unless they can save the shortfall theyre stuck there.

Theyre just regular working people and theres millions in the same situation.

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  • 293 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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