September 2016 Archive

Friday, September 30, 2016

The unlucky generation? Certainly with respect to wealth

Independent: Children of Thatcher era have half the wealth of the previous generation

People born in the early 1980s are the first post-war generation to reach their thirties with smaller incomes than those born a decade earlier

Posted by tom101 @ 07:48 AM 10 Comments

Thursday, September 29, 2016

And so it begins

UK Investing: UK 1yr Gilt rates

With German banks on the rocks, there is now a dollar shortage and you can see capital flowing into Sterling with rates on 1yr bonds crashing to 0.084% and 2yr bonds down to 0.068%. They are clearly about to plunge into negative territory noting that a lot of money will flow in the property funds that recently shook off weaker hands with the Brexit vote. And so after Brexit, the panic about Britain has morphed into Britain being a safe haven. It will become very clear, very soon, that it is the EU that is broken, since when Germany is screwed up, nobody can assist the periphery and we are one disaster away from the fall of the European velvet curtain.

Posted by libertas @ 11:13 PM 0 Comments

Anothe brcik removed in the housing ponzi scheme

Daily Telegraph: Philip Hammond anounces end of Help to buy

One by one the props that make the UK the second most overvalued housing market in the world are coming to an end. This year we have now had a massive amount of benefits taken away from Buy to let Landlords and now Help to Buy is going from another area of the housing market. Not quite a free market yet but a step in the right direction

Posted by britishblue @ 12:57 PM 10 Comments

Wednesday, September 28, 2016

Record numbers left homeless

Guardian: Record numbers left homeless after eviction by private landlords in England

Record numbers of families are becoming homeless after being evicted by private landlords and finding themselves unable to afford a suitable alternative place to live, government figures show. The end of an assured shorthold tenancy (AST) was cited by nearly a third of the 15,170 households in England who were classed as homeless in the three months to June – a number that was up 10% on the same period last year.

Posted by tom101 @ 06:48 PM 4 Comments

Thanks for nothing...

Telegraph: QE is here forever, says Bank of England deputy governor

''Interest rates are likely to stay relatively low permanently, she said''

Posted by hpwatcher @ 02:15 PM 5 Comments

Monday, September 26, 2016

London attraction fading

Guardian: Rising London house prices spark departure of thirtysomethings

The number of thirtysomethings leaving London has leapt in recent years as high housing costs have forced people to move out of the capital, according to campaigners.

Posted by tom101 @ 10:30 PM 5 Comments

Chomsky heart attack

Telegrapch: World-leaders-cannot-match-market-forces-for-power/

Repeated so often that it seems true, is the mantra that lower sterling helps exports, even though the manufacturers in the UK are free to set their own prices... I looked at gbp yen today and its 130, i have never seen it so low, and I just wonder what is the point of transferring all the purchasing power for uk assets to foreign currency holders abroad? how can it possibly help? the UK from previous (and ongoing) asset sales now has a persistent current account deficit but the boe keeps on going..and they will -keep on- going until they are forced to respond to a wage spiral but because their cr*ppy policies don't work we won't get one. i have given up on sterling its the most useless currency in the world.

Posted by stillthinking @ 01:54 AM 2 Comments

Saturday, September 24, 2016

A complex market

Telegraph: Safe as houses? Not in this fast, volatile market

"Property owners have also developed a hyper-sensitivity to the socio-political climate. It’s a dangerous mindset in a market powered by shifts in sentiment rather than economic reality. Article 50 has not been activated to exit the European Union and yet housing chains started to collapse in the aftermath of the vote."

Posted by tom101 @ 06:43 PM 0 Comments

Friday, September 23, 2016

Buyer enquiries and sales instructions continue to slip

RICS: Expectations continue to recover

To counter the puff pieces regularly posted here ... like the two below ... a small increase in prices according to the latest (Aug) RICS survey on the back of very low and falling volumes of sales.

Posted by nickb @ 09:17 AM 0 Comments

Thursday, September 22, 2016

Housing market picking up again....

Telegraph: Housing market picks up speed in August - as Help to Buy scheme fades

Mortgage lending climbed sharply in August, reversing the post-referendum fall in July and taking the market to its highest summer level since 2007.

Posted by tom101 @ 01:26 PM 4 Comments

Tuesday, September 20, 2016

Falling mortgage rates - No better time to buy....

Telegraph: Home buyers set to enjoy mortgage rates below 1pc

Interest rates on typical mortgages could fall below 1pc in the coming months in an unprecedented boost for home buyers, according to analysts at Bernstein Research.

Posted by tom101 @ 03:55 PM 13 Comments

Monday, September 19, 2016

Eliminate bankers, transaction costs, speculation and bank runs

Web of Debt: Central bank digital currencies : A revolution in banking

Central banking in the Cloud, one clearing house, one lender and all of the above. And the BoE is moving towards part of this new banking world, where it would be more difficult to get loans for speculation since leveraging of credit through re- hypothecation of credit in the repo market (where several parties apparently own the same asset at the same time when in reality only one of them holds it) would be eliminated. Link in article succinctly explains repo market.

Posted by icarus @ 10:04 AM 2 Comments

Wednesday, September 14, 2016

Maybe not inflation

Torygraph: Why is the UK's money supply surging?

Article suggests that the sudden growth of the money supply will result in inflation, and that the BoE rely on consequences of Brexit instead of rate rises. However, imo, " But they suddenly engaged in a reverse ferret, increasing their holdings of cash by an annualised 70pc over the past three month" the dash to cash by fund managers, or this kind of static creation of cash from financial instruments, could also mean that people are getting ready for an across the board drop in prices and want to be ready. As has been reported generally, the BoE is running out of easing measures. Anyway I don't know but it looks like whichever one we end up with of the two alternatives is coming up soonish.

Posted by stillthinking @ 03:31 AM 11 Comments

Tuesday, September 13, 2016

Surely banks have ventured here before

Reuters: Exclusive: Goldman team uses retail deposits for Wall Street-style profits

Banks boosting profits using the funds from retail accounts on Wall St. should ring a few alarm bells, shouldn't it?

Posted by enuii @ 06:35 PM 1 Comments

Monday, September 12, 2016

Mortgage availability

Telegraph: First-time buyers hit by Brexit as high-value mortgages dry up

'This reflects lenders' growing concern that the housing market could falter in the wake of the EU referendum, brokers say. High loan-to-value mortgages (where the loan represents a high proportion of the price paid) are risky, as they expose the lender and property owner to potential negative equity if prices fall.'

Posted by tom101 @ 11:50 AM 4 Comments

Assets, debt and Ponzi

Counterpunch: Stop the Fed before it kills again

This is about US corporations and stock markets. But the mechanisms apply to any asset market including of course housing. Despite poor earnings US corporations are loading up on debt, using their (current, temporary) creditworthiness / collateral, to pay out dividends and buy back shares to boost their price. But households and consumers are not borrowing enough to boost demand, and corporations aren't investing productively. The Titans of 'industry' are devouring their own children to enrich themselves and impoverish everyone else. The Titan Cronus devoured his own children so that none would dethrone him - but in the end they did.

Posted by icarus @ 09:17 AM 2 Comments

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