Saturday, September 29, 2007

According to the BBC, we’re all up to our eyes in wealth, not debt!

UK Personal 'wealth' at £6 trillion

If you ever wanted an article that exposes just how much of a Labour Party Lapdog the BBC has become since the Hutton Enquiry, then here's your proof. They even have the gall to defend the government's bumper IHT tax-grab which was the whole point of accelerating house prices in the first place. And where have those hardworking, honest and impartial BBC editors obtained this gem? None other than one of the UK's biggest private mortgage lenders who ... heaven forbid ... would never be interested in painting over the emerging cracks in the housing market!

Posted by paul @ 10:00 AM (797 views)
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8 thoughts on “According to the BBC, we’re all up to our eyes in wealth, not debt!

  • Trying valuing our housing wealth using a yield or historic salary ratio baisis. I am sure the story would be different. Debt is real valuations are not.

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  • With all the news floating around that personal debt is at £1.4 trillion the VI spin machines had to kick into gear sooner or later.

    Perhaps they would care to indulge us with a slightly less simplistic analysis, showing how the vast majority of personal wealth is concentrated in the hands of a few, whereas personal debt is all pervasive and a real threat to the economy.

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  • An interesting if rather disturbing article Paul. As you say, it is hardly unbiased reporting from our good friends at the BBC. Personally, I do not count my home as in investment or a bank and eventually, sooner rather than later in my view, the chickens will come home to roost. We can see the true picture emerging and the desperation on behalf of the VI’s to maintain an illusion. The comment about IHT is also interesting and this is where I get contentious. For as long as people regard their home as an investment and prices keep rising, then they cannot bleat when they are taxed on the profit as and when it arises. That is the nature of any investment and their is no reason why houses should be different. Maybe that is the message we should be getting out to the sheeple.

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  • I’d like to figure out how these figures relate, as I think it is mainly spin:

    House prices increased by 216% a notional amount
    Presonal Debt rose by 163% a physical amount

    of which now 43% of wealth is notional as opposed to 26% at the start of the period, therfore physical wealth has dropped by 20%

    57% of assets are not held as house which correlates to the 43% of notional wealth, therefore there has been a 20% shift in peoples money from being in more stable investments to housing is this not a sign of a bubble?

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  • What are Pravda on now?

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  • The BBC is really starting to concern me. I know many take the (B)lair (B)rown (C)orperation with an amount of tongue in cheek. I don’t really ever watch TV so I can only comment on BBC radio. Currently the radio are obsessed with, “will there, and when will there be an election”. The BBC were also obsessed with “When will Tony Blair leave the job. But of more concern is the sucking up to Gordon Brown. BBC Radio without question are providing positive reports towards Brown and then in the next report applying negative reporting to either Cameron or Sir Menzies. As an example, this last week has seen the Labour conference. During when Q&A with the press, the lovely Mariella Frostrop asked Brown and question and they all had a happy gafaw at the question and Brown was portrayed positively. The very next report was of the Chingford Skinhead aka Tebbit heavily criticising Cameron. The week before a big fuss was made of Thatcher visiting number 10. The BBC made a big deal comparing the qualities of Thatcher with those of Brown. The next article made a big deal of an “Lib Dem” member saying he would like to be the leader. This report was portrayed by the BBC as lack of support for Sir Menzies and a leadership challenge in the offing.
    The latest was yesterday at about 5.30 ish on Radio 4. Two political commentators, both Brown’ites commentating completely without challenge how Brown was the heir to Thatcherism and what a great PM he would make.

    Read into this what you will, call me paranoid but for those that listen to the BBC just listen out for the continually stream of positive reports on Brown followed by negative on any other leader or party.

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  • This sort of thing makes my blood boil, the prime reason being that these in the main modest piles of bricks are bought via debt using mortgages over increasingly long terms and income multiples. HOW CAN THIS BE CALLED WEALTH it is purchased via the next generations DEBT and is illusionary wealth, real wealth is earned not borrowed.

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  • Re “these in the main modest piles of bricks ”

    To calculate the true value of a house just go round to the local builder’s merchants and find out the cost of the bricks, cement, fixtures etc. It will be a fraction of the supposed value of the house and probably less taking into account capital depreciation The reality is these near worthless ageing piles of stone have been engineered to be expensive overvalued idols by the corruption of the government and large corporates masking over their bankrupt economy. The BBC with its “don’t pay the license – pain of prison” undemocratic ancient fundraising mechanism is just another partner in this disgraceful scam.

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