Thursday, July 12, 2012

Another example of homeownerism?

The Bank of England doesn't want you to buy a home

Discuss

Posted by mr g @ 11:29 AM (2564 views)
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13 thoughts on “Another example of homeownerism?

  • mark wadsworth says:

    Yup, in olden times, a small group owned ALL the land but this newfangled invention “democracy” got in the way, so people voted for policies which would enable more people to become land owners. The existing land owners didn’t lose out too much as they jsut sold off bits of land for vast amounts of money at the time and they still have plenty left – the Liberal’s People’s Budget of 1909 would have been a better way of doing it, so the land owners started World War One to distract people’s attention.

    Then the banks got in on the act and took HO’ism to a new level. The article says: “Unfortunately, our common desire for housing stability and predictability brought the UK financial system to its knees during the global financial crisis of 2007/09.”

    Nope, what happened was “Unfortunately, the HO elite (large landowners, banks, NIMBYs) exploited our common desire for housing stability and predictability to massively line their own pockets and thereby brought the UK financial system to its knees during the global financial crisis of 2007/09.”

    So what the landowners really want is a return to the olden days where they own all the land and everybody else pays all the tax to keep those land values high and everybody else pays rent on the value they have themselves generated. It’s only this stupid “democracy” that ensures that owner-occupation stays above 50%, because once it goes below that, the NIMBYs are outvoted. The natural long term level would appear to be 60% – 70%, but half of those don’t really own land at all – the mortgage bank does and they are paying rent to the bank, not to an actual landlord.

    But the banks don’t really care one way or another, they are not fussed whether they are lending inflated amounts to FTBs, to BTL landlords or to Baby Boomers taking out second mortgages etc.

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  • MW – I’ve just sampled Dire Straits Money For Nothing – still got Sting singing the background introduction but now as follows “I want my LVT” “I want my” “I want my LVT”

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  • mark wadsworth says:

    Jack C, that would be awesome but for the fact that the long waily intro is the worst bit of an otherwise absolutely excellent song.

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  • general congreve says:

    @1 – No choice but to hang them high then! Pass the rope.

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  • general congreve says:

    On the topic of hanging banksters, here’s one of William Banzai’s (of Zerohedge fame) latest brilliant creations.

    Image and video hosting by TinyPic

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  • Good. That’s the HPC party line, isn’t it?

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  • @1 Mark

    totally agree and it is called Agenda 21 and the club of Rome.

    They don’t want want so many owner occupiers, but at the same time need to lend money to make profit. A bit contradictory.

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  • At last a decent suggestion from this forum.

    Only taken a decade!

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  • Marx as always goes off on a rant about ism’s and nonsense. But the reality is quite simple, that if interest rates were higher, then houses would be cheaper and those who saved money would find it easy to generate a deposit. But why do they produce low interest rates? To support prolific borrowing in the government and corporate sector. So far as they are concerned, it is OK to break some eggs to make an omelet, and home ownership is the egg which gets broken, but they don’t care, because through foreclosures not only of the houses, but also of the banks, government will through this process own almost all the houses in the country.

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  • general congreve says:

    On the subject of corporate debt, Thomas Cook now owes 1.2Bn+. So they only have to generate about £2000 profit (profit not revenue!) in the coming years from every man, women and child in the country to fully discharge their debt. Well, not including additional interest of course.

    I’d say there’s more chance of me winning the grand national on foot, than TC digging themselves out of that hole.

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  • General C., let’s just focus on the maths. There are some 60m people in the UK, so if TC owe £1.2bn that’s £20 per head, not £2,000. That isn’t all due in one year either – so think of it as just £2 per capita per year over 10 years. Doesn’t sound so bad now.

    Some debt is perfectly normal. Let’s not throw the baby out with the bathwater.

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  • stillthinking says:

    Renting doesn’t make you more mobile at all. You still have to move the stuff, you have to pay the agents fees, you usually get scammed on your deposit money.

    Renting also has no effect if you have kids, then you probably want them to stay at the same school.

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  • £20 – £2,000.

    That’s gold bugs for you. Extra zeros all over the place…

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