Guest 714- Registered: 14 Apr 2011
- Posts: 2,594
Tom, google any of Brown's Mansion House speeches. of course the banks were irresponsible but govt were encouraging them.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
House-price inflation in Britain has been a pyramid debt-structure designed to artificially increase the prices of properties continually, far beyond real inflation.
In this way, the banks give out higher mortgages which in turn bring in more interest.
It keeps the banks on a continuous bank-role paid by the public, and bonuses to bankers are assured.
It brings in higher stamp duty to the Treasury, this indeed being one of the Treasuries main sources of income.
It has caused the Public to incur immense private debt in an artificial manner.
Britain's economy is essentially based on Speculation.com, and there can be no doubt that, at some time in the future, the Government, this or whichever government be in Parliament, will address the artificially high prices of properties, and bring them down to real-market levels.
It will happen, it has to happen, and it's one of my fundamental economic policies.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Give it up Alexander, once again we see the equivalent to a brickie giving a brain surgeon advice on how to carry out an operation.
I have already explained what happened to the housing market in that false boom.
Your lack of understanding of the market is clearly apparent in your post. The price of houses is the 'real market level' at any one point in the cycle even if the price at a particular point was built on a bubble created by incompetent government, a bubble that has now burst incidentally as all bubbles do eventually.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
Speaking of all things 'Real Economy', I watched some of Newsnight last night, about hotel cleaners.
The Hilton, for instance. Changed from in-house staff to out-sourced agency. The same cleaners...to begin with.
Where they were tasked to attend to two rooms per hour, this is now three rooms per hour.
Also, for many months. Instead of getting their wages (about £1,400/200 hour month) they got £200 and told that they could not get the rest...it took a further three weeks each month to get paid-up.
"If you don't like it, you can f*** off and we'll have a van load of Rumanians here by morning." Some were told.
Perhaps the CBI will encourage the voluntary sector in?
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Barry, the Government, this or another one, will at some point legislate on house prices, and bring them down to the real-market value. It's a forgone conclusion.
It's not a question of if, but when.
House prices are about 3 times their real market value, considering prices in general and salaries. The housing market is speculation driven, it has been for decades, and has spiraled out of control.
And there is nothing you can do to prevent this change coming about, either!
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
nothing anyone can do about house prices alex, always been a problem to get started with the first purchase.
nowadays it is harder than ever for first time buyers to get on the housing ladder so eventually prices should come down to a realistic level.
Guest 698- Registered: 28 May 2010
- Posts: 8,664
Alex, no government will ever do that because most of their voters are house owners. So are MPs for that matter.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Peter, a house owner who doesn't intend selling or mortgaging their house, won't be affected.
A house owner who intends selling their house to buy another one, won't be affected, as they'll get less money for the one they sell, and pay less for the one they purchase.
So no loss there!
However, they will pay considerably less stamp duty on the house they purchase, and so stand to gain.
And again, a house owner/s, whose child or grandchild is buying a first house, will be happy to know their loved one is paying a fair price, and not a pyramid-debt speculation-driven rip-off price.
They possibly won't even have to worry themselves grey and white as to whether their loved one will manage to pay the mortgage before they reach the age of 150, with all the guarantees necessary from the loving parents and grandparents for bank loans to boot...
Many a house owner will be happy to know that their child or grandchild purchasing a house will stand a much lesser risk of being home-evicted for failure to meet the extortionate mortgage + interest...
So all egoistic thoughts (voters and potential voters) counted and deducted, I see the project - to drastically regulate and reduce property prices - as ripe and ready to go ahead, and it will probably crop up any time soon in a speech from Nick Clegg, Mr. Milliband or even Dave Cameron himself.
It will happen!
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Alexander - you just do not know what you are talking about, yet again.
It is a waste of time trying to acquaint you with reality.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Barry, I think everyone can understand what I'm talking about above, and that's what counts, that it will become a standing policy any time soon, once a party brings it up.
My bets are on the LibDems, with Labour following suit soon after.
The same happened with the Wealth Tax proposals.
Parties with nothing new and better to present to the electorate other than the present fossilised and spent system, won't get voted into government. Your Tory party could end up being big-time losers if they stick to the crazy policies of "hang-yourself" house prices.
It would be interesting to know what Vic's UKIP think of it. At 6% they need to pull their socks up.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
house prices cannot be controlled by governments alex, market forces alone dictate property values.
if the present trend of very high deposits required carries on it can only mean a fall in house prices.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
Lest we forget...any engineered influx of wealth is sure to push prices up at the top end, those that may have shopped there will have to lower their sights, thus raising prices at the next level down...and so on.
And there is all that empty stuff up North, best get in quick before all the evicted Raspberries are forced to flee from the South and occupy all the ground floors.
Then all we need is a 'bucket chain' down through Peterborough etc. so as the laundry and the washing-up gets done.
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
The current market forces dictating house prices, Howard, are the main reason that led to the bank collapse of 2008.
These market forces dictating house prices are the core of our rotten debt-system, and the core of the rotten system in a number of European countries that have already been declared bankrupt, or are on the verge of being declared as such.
Sheer common sense will prevail, and there is only one party in Britain that has a precise plan to regulate house prices.
Guest 703- Registered: 30 Jul 2010
- Posts: 2,096
Which party is that Alex?
And have they considered the effect of negative equity on the economy?
Guest 698- Registered: 28 May 2010
- Posts: 8,664
Alex, how would you cope with the consequences of half the country being plunged into negative equity overnight? what would that do for the financial strength of the banks and building societies?
34, must be the CPGB again. 'The proletarians cannot become masters of the productive forces of society, except by abolishing their own previous mode of appropriation, and thereby also every other previous mode of appropriation. They have nothing of their own to secure and to fortify; their mission is to destroy all previous securities for, and insurances of, individual property. ' - Karl Marx.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Where does negative equity apply to the equation, Ray and Peter?
What's CPGB?
There is a key to house price valuations, so that a property is worth what it's really worth, although the State would have to adjust many already-existing mortgages and at the same time compensate the banks/lending-institutions for potential losses.
However, a start has to be made. Otherwise people will just continue buying houses that are artificially over-valued, being indebted with over-bloated mortgages, and that would mean continuing to cripple society.
Every ten thousands pounds too much spent on purchasing a house is ten thousands pounds less spent elsewhere in the economy.
The banks would not be negatively effected if people paid the proper price for a house, in other words 50%+ less, because the other 50% they'd still spend, or save, and that money will always be circulating through the banks, because money in circulation always ends up in banks, before being drawn again.
In fact, if people paid the proper price for houses and for rent, so much more money would be available for other sectors of the economy, which would, as a result, prosper.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Adding to that, the State would spend umpteen billions a year less on housing benefits.
Guest 703- Registered: 30 Jul 2010
- Posts: 2,096
Well Alexander, if you don't realise how negative equity applies to the situation you are once again showing you have no idea at all what you are talking about.
Fortunately, any party (especially the Communist Party of Great Britain
) that proposed putting a large proportion of the country's homeowners into negative equity has no chance at all of getting elected.
Guest 651- Registered: 12 Mar 2008
- Posts: 5,673
Alexander - good to see you haven't yet left cloud cuckoo land !!
Been nice knowing you :)
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.