Friday, October 13, 2006


London's Mountain of Money

A choice bit by Camilla Cavendish who muses over the perils of the City's middle classes who are gradually losing their grip on long-accustomed lifestyle and comforts...with the advent of the foreign super-rich in London, who are charging up the economic ladder here, gobbling salaries, bonuses, homes, and posh private school places faster than you can say "property crash." Whereas five years ago twenty professions were represented as "comfortably affording" school fees that number, boys and girls, has narrowed to a mere nine, mostly including various descriptions of bankers and lawyers. And, as if that weren't bad enough, these bankers are SO rich, they really can't enjoy London to the full anyway [aaaaaaah], and have to live in Monaco nearly year-round just to avoid paying UK taxes. Well, back to that can of dog food I was warming for supper.....

Posted by indiablue19 @ 12:22 AM (559 views)
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  • sold 2 rent 1 says:

    Anyone who needs an explanation of how house prices can rise further, just read this article.

    “But the top end pulls prices up all down the scale”
    All this money will cause property to rise at all levels, gradually moving out from central London.

    The MPC won’t be able to raise rates fast enough to slow this surge in house prices
    This final surge will take us into the stratosphere. I am scared for 2008 – 2010 when it all blows up.

    I am trying to diversify my investments.
    Gold is one option.
    Silver is another. Have heard arguments for and against silver. Anyone with any comments.

    Here are some interesting articles I found

    Arguments for silver over gold (looking at the gold/silver ratio)

    Argument for gold over silver

    Central Banks Now Buying Gold (this guy expects gold to hit $10,000 to $30,000/oz)

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  • Caledonian-emigre says:

    “The best and brightest, the self-made, have routed the old upper classes.”

    The best and brightest. So bankers are more intelligent than doctors and engineers or even rocket scientists. That inventor of pennicilin was a thickie in comparison to his Übermensch merchant banker counterparts by this logic.
    Hell what bullsh*t !!!
    Most of the Russian noveaux riche, for example, owe their fortune to deceitful plundering of the Russian peoples assets. Like the assets of the British people are being taken away from them right now.
    And all those unregulated creative hedge funds and derivatives – nobody knows what is going on in those dark corners.
    Forget society and technology – just worship at the altar of the banks.

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  • Sorry – I don’t understand why this will ripple out of London – not unless all those people currently in London move further out – but even then I can’t see it having a particularly large impact beyond the M25.

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  • Inbreda….
    The interesting feature of this to me, and the reason I posed it, is that this trend apparently is creating an implied new structure for society, a template that suggests there should/could be such a thing as a stark division between the super-rich and the relative have nots with no one in between. That idea may in fact “ripple” elsewhere as the latest great thought and something to strive fo. Also tells us something about why this property “boom” is not seen as terribly troubling by the powers that be. Every one in that realm is benefiting to a degree that they have to leave town to avoid taxes, and can’t be bothered about the rest of us and our petty need to survive.

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  • indiablue19 – all countries are moving in the direction of template you describe. I have many friends in Ukraine and Russia- massive discrepencies in wealth there and becoming even more exaggerated all the time.

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  • when will the Mother of all Crashes start?

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  • Retiredbanker says:

    I am certain that forthcoming oil depletion is going to well and truly poop this particular party.

    Fear of the former communist bloc acted as some check on the greed of the rich, but now anything

    A collapse in the living standards of most people will of course create demands for a fairer redistribution
    of wealth ( hopefully after my time ).

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  • I appreciate what you’re saying indiablue19. The troubling aspect is that history tells us that when this situation occurs, eventually the populous focus on madame guillotine.

    Sooner the better as far as I’m concerned!

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