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bangybongo

Monetary Lunacy

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what would happen if the bank of england freely exchanged taxpayer-backed treasuries for mortgage-backed securities and interest rates were cut to 2 percent no matter what inflation did? what would happen to house prices?

they would rise in sterling terms, probably.

i could envisage a situation where prices actually advanced in sterling terms, but not by more-meaningful measures.

would that have constituted a house price crash?

views please.

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would that have constituted a house price crash?

No idea. You didn't mention wage inflation. The only meaningful measures here are Sterling, wage inflation, and house prices. Commodity investments and forex are completely irrelevant because "most people ain't got any".

(Edited to remove supernumary 'w')

Edited by Moo

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...if the bank of england freely exchanged taxpayer-backed treasuries for mortgage-backed securities and interest rates were cut to 2 percent no matter what inflation did?

views please.

I'd probably buy in that situation - all other things being equal.

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Pound down 20% in a year and the real rate of inflation must be in the double digits.

Whats described is already happening and thats without taking into account all the stealth taxes we are subjected to.

Get ready for the HIP to include having to have the buyer rewire the house to bring it upto standard within 2 years of buying the house because it's already happening in parts of europe.

Makes you wonder who's house it is anyway.

No idea. You didn't mention wage inflation. The only meaningful measures here are Sterling, wage inflation, and house prices.

You can forget wage infaltion as mass immigration has ensured that wages remain flat even during the so called boom.

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what would happen if the bank of england freely exchanged taxpayer-backed treasuries for mortgage-backed securities and interest rates were cut to 2 percent no matter what inflation did? what would happen to house prices?

they would rise in sterling terms, probably.

And why the hell not! - Evreything else is!

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Guest Shedfish
what would happen if the bank of england freely exchanged taxpayer-backed treasuries for mortgage-backed securities and interest rates were cut to 2 percent no matter what inflation did? what would happen to house prices?

didn't they just do exactly that in the US? it doesn't seem to have worked

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You can forget wage infaltion as mass immigration has ensured that wages remain flat even during the so called boom.

Entirely correct. However, in order for house prices to rise and yet it be considered some sort of 'crash', we'd need to see tonkin' gert wage inflation.

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What would happen if someone really stupid asked stupid questions?

You Alistair Darling.

I claim my £5.

:lol::lol::lol::lol::lol::lol:

not so stupid after all, you Gordon Brown. house prices down about 45% in dollar terms, more in yen terms. the government giving away free money, bullying banks left, right and centre to dole out free money, exchanging (our) good assets for banks' (bad) assets. i don't call the 15% we've had so far a crash, and -- much as i wish it -- i'm not convinced it will ever happen: in sterling terms.

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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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