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Ken Clarke Has Said It - Basically Tshtf

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Some quotes

"Bank losses lead to less money lent and at a higher rate, more prudence"

"Bank problems coincide with rising food and fuel inflation, and commodity bubble"

"I was not gloomy but now have to revise it"

"I thought the housing market in the UK would be more resilient than USA, Spain, Ireland due to strong demand"

"UK housing market has jumped off a cliff, as shown by the transactions"

"Its going to get worse in 2009"

"Has hit consummer spending hard as shown by Marks and Spencers latest news"

"Central banks have to raise interest rates to stop wage demands to pay for higher fuel and food"

"We face rising unemployment and rising inflation"

Well, If I heard any real news on mainstream TV, this is it. Ken Clarke, well done in getting the public's head out of the sand.

Edited by notanewmember

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snip

"I was not gloomy but now have to revise it"

"I thought the housing market in the UK would be more resilient than USA, Spain, Ireland due to strong demand"

"UK housing market has jumped off a cliff, as shown by the transactions"

"snip

so many beleived DEMAND was the driver of the UK housing market.

Yes, people want houses, but it was credit that drove their prices.

It was clearly hidden, in plain sight, to 99% of the population though.

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"Bank losses lead to less money lent and at a higher rate, more prudence"

"Central banks have to raise interest rates to stop wage demands to pay for higher fuel and food"

Increasing interest rates now means it will take longer to hit the bottom, stop F****** digging.

DEBT IS THE PROBLEM, the only way to solve a DEBT problem is to pay the money BACK.

Repaying the DEBT means the banks have smaller losses, they will still lose money but not as much as they are going to do. This is crisis time and in a crisis you demand your money back.

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I dont know the answer, but theres probably no way the UK populace can ever repay the debt back, let alone keep up with the rolling interest. Devalue the £ is the easier route out of this. *shrugs*

Add - i doubt many people who took out debt in the first place on investment property intended to repay the debt themselves anyway. They are going to walk away if voids mount :(

Edited by notanewmember

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so many believed DEMAND was the driver of the UK housing market.

Yes, spot on. I have always held that demand is just an illusion created by those who wish the masses to be frightened into stepping up to the pyramid. The only demand has really been the demand to be greedy.

VP

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Guest X-QUORK
They are going to walk away if voids mount :(

Go bankrupt you mean? There's no walking away from the debt even if they choose to drop the keys off at the bank.

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Go bankrupt you mean? There's no walking away from the debt even if they choose to drop the keys off at the bank.
Yes thats what I meant - though I dont think investors know for sure [!] Easy sound bite to recite. Edited by notanewmember

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Guest pioneer31
so many beleived DEMAND was the driver of the UK housing market.

They were drip fed this heinous lie on a daily basis by our glorious media.

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Guest barebear

The public just love buzzwords and they are prepared to say them over and over again without even questioning their meaning.

Supply and demand , the ladder, house prices are gonna sky rocket and others.

Then came along another buzzword, credit crunch, now they are all muttering that,no one stops to think where has the demand gone ,are people happy now to sleep on the streets ? My god you can go up or down on a ladder doh !! The sky rocket has run out of fuel and it cant hover.

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The sky rocket has run out of fuel and it cant hover.

LOL, must be worthy of the aphorism of the month award!

Anyone sussed out a link yet? Tried myself but find GMTV a bit useless for this sort of thing unless you are looking for banal tat.

Regards

Sox

Edited by Bootsox

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From The Independent:

Likewise, help is needed for the millions of indebted and credit-impaired Britons. Since they are, like the Third World, enslaved by unpayable debt, an extensive programme of debt forgiveness and freezing of interest is required.

Phillip Blond is a senior lecturer at the University of Cumbria

No hint of where the money's to come from...

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I dont know the answer, but theres probably no way the UK populace can ever repay the debt back, let alone keep up with the rolling interest. Devalue the £ is the easier route out of this. *shrugs*

Add - i doubt many people who took out debt in the first place on investment property intended to repay the debt themselves anyway. They are going to walk away if voids mount :(

Leaving aside the fools who bought northern city-centre newbuild rip-off flats (who are a lost cause) why should "voids mount"? The same number of people are still going to want to rent houses, aren't they?

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From The Independent:

Phillip Blond is a senior lecturer at the University of Cumbria

No hint of where the money's to come from...

No Blond jokes please.

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Leaving aside the fools who bought northern city-centre newbuild rip-off flats (who are a lost cause) why should "voids mount"? The same number of people are still going to want to rent houses, aren't they?

I'm no expert but it all depends on ltvs doesn't it?

if the resets make more btler's try to sell any buyers would need higher deposits-these people could then be able to offer lower rents as they need to cover lower monthly payments -so even though the same number of renters are available they would would leave those btl's alone who try to ride it out leading to longer voids-no?

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Good article. The title says it all really,' we're riddled with debt ....but the cure is a killer.' The disease has been left without treatment for far too long and is now terminal.

Only as individuals we mitigate the impact of a massive downturn, nothing can be done on the macro level(?)

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The problem with 'debt forgiveness' is that you are rewarding the imprudent. It is, in effect, a gift of money to repay the debt only to the debtors. Those that were prudent and saved whilst avoiding debt will not receive this gift. Now you could give everyone, say 100k. This would be fairer since it applies to all. Yet it still hurting the prudent in that the money they have saved is now worth much less in a world where everyone is rich.

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"Central banks have to raise interest rates to stop wage demands to pay for higher fuel and food"

Where is the logic in that one.

I think goverment have been in with the banks all along and now they have the population hooked on debt they have closed the doors.

Each time you pay money to a bank you need to earn that money and brown gets to tax that money.

Hell if i got to tax 30-51% at source of every penney you spent then do you think i would be telling you to buy a ford escort or would i want youj to buy a rolls royce.

Mass immigration will continue to put paid to any wage demands and if wages did not go up during the boom then it's a fair bet they will come down during a crash.

Edited by Justice

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Anyone sussed out a link yet? Tried myself but find GMTV a bit useless for this sort of thing unless you are looking for banal tat.

Yes, any link? I'd like to see this.

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I have a great deal of respect for Ken Clarke, even if he is a Bilderberger.

better than being a furburger, which I beleive both our current chancellor and PM are .

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  • 399 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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