Financial Crisis

[midas]

^^ Post #14514 SheungWan,

If you have time, write a syllabus. Because this is at the root cause of many problems today. Kids are not receiving education from responsible parents, mostly because the parents themselves are irresponsible.

There is a bigger problem of dumbed down assessments and a flight from 'difficult' subjects in public education.

Hey, there are even contributors to this forum who are unable to work out the difference between higher and lower interest rates. You would think kindergarten stuff, but apparently a mountain to climb for some.

Hey there are even contributors to this forum who purport to be financial geniuses but are unable to back up their ridiculous blandishments with hard facts, even when other posters ask them to do so.

I will try again. You are inferring that lower interest rates in Europe are more important than any other economic fundamentals such as extremely high unemployment rates? If that is the case can you please explain why low interest rates in Japan and USA ( participation rate has plunged to 1978 levels ) have not led to a meaningful revival of their economies?

Edited January 11, 2014 by midas

[trogers]

^^ Post #14514 SheungWan,

If you have time, write a syllabus. Because this is at the root cause of many problems today. Kids are not receiving education from responsible parents, mostly because the parents themselves are irresponsible.

There is a bigger problem of dumbed down assessments and a flight from 'difficult' subjects in public education.

Hey, there are even contributors to this forum who are unable to work out the difference between higher and lower interest rates. You would think kindergarten stuff, but apparently a mountain to climb for some.

Hey there are even contributors to this forum who purport to be financial geniuses but are unable to back up their ridiculous blandishments with hard facts, even when other posters ask them to do so.

I will try again. You are inferring that lower interest rates in Europe are more important than any other economic fundamentals such as extremely high unemployment rates? If that is the case can you please explain why low interest rates in Japan and USA ( participation rate has plunged to 1978 levels ) have not led to a meaningful revival of their economies?

In a debt crisis, households and corporates are struggling to stay afloat while being drowned by the level of debts they had got themselves into. Low interest rates have no meaning for them as they cannot take on even more debts, but instead have to spend larger parts of their income paying off what they have already owed.

Thus, deflation of the economy and high unemployment.

[MJP]

^^ Post #14514 SheungWan,

If you have time, write a syllabus. Because this is at the root cause of many problems today. Kids are not receiving education from responsible parents, mostly because the parents themselves are irresponsible.

There is a bigger problem of dumbed down assessments and a flight from 'difficult' subjects in public education.

Hey, there are even contributors to this forum who are unable to work out the difference between higher and lower interest rates. You would think kindergarten stuff, but apparently a mountain to climb for some.

Hey there are even contributors to this forum who purport to be financial geniuses but are unable to back up their ridiculous blandishments with hard facts, even when other posters ask them to do so.

I will try again. You are inferring that lower interest rates in Europe are more important than any other economic fundamentals such as extremely high unemployment rates? If that is the case can you please explain why low interest rates in Japan and USA ( participation rate has plunged to 1978 levels ) have not led to a meaningful revival of their economies?

In a debt crisis, households and corporates are struggling to stay afloat while being drowned by the level of debts they had got themselves into. Low interest rates have no meaning for them as they cannot take on even more debts, but instead have to spend larger parts of their income paying off what they have already owed.

Thus, deflation of the economy and high unemployment.

. . . then interest rates rise and for many the cost of debt servicing doubles. Say you were struggling to pay a 2.5% mortgage because the capital debt was so high, that rate comes to an end and you're at 5%.

This has happened to several friends in the UK already. All the income from the breadwinner of the family is taken in mortgage interest and council tax.

[midas]

^^ Post #14514 SheungWan,

If you have time, write a syllabus. Because this is at the root cause of many problems today. Kids are not receiving education from responsible parents, mostly because the parents themselves are irresponsible.

There is a bigger problem of dumbed down assessments and a flight from 'difficult' subjects in public education.

Hey, there are even contributors to this forum who are unable to work out the difference between higher and lower interest rates. You would think kindergarten stuff, but apparently a mountain to climb for some.

Hey there are even contributors to this forum who purport to be financial geniuses but are unable to back up their ridiculous blandishments with hard facts, even when other posters ask them to do so.

I will try again. You are inferring that lower interest rates in Europe are more important than any other economic fundamentals such as extremely high unemployment rates? If that is the case can you please explain why low interest rates in Japan and USA ( participation rate has plunged to 1978 levels ) have not led to a meaningful revival of their economies?

In a debt crisis, households and corporates are struggling to stay afloat while being drowned by the level of debts they had got themselves into. Low interest rates have no meaning for them as they cannot take on even more debts, but instead have to spend larger parts of their income paying off what they have already owed.

Thus, deflation of the economy and high unemployment.

Thank you trogers

“Low interest rates have no meaning for them as they cannot take on even more debts “

And so is there any reason the same doesn't apply in Europe?

Debtors’ prison

The euro zone is blighted by private debt even more than by government debt

http://www.economist.com/news/finance-and-economics/21588382-euro-zone-blighted-private-debt-even-more-government-debt-debtors

Edited January 11, 2014 by midas

[SheungWan]

^^ Post #14514 SheungWan,

If you have time, write a syllabus. Because this is at the root cause of many problems today. Kids are not receiving education from responsible parents, mostly because the parents themselves are irresponsible.

There is a bigger problem of dumbed down assessments and a flight from 'difficult' subjects in public education.

Hey, there are even contributors to this forum who are unable to work out the difference between higher and lower interest rates. You would think kindergarten stuff, but apparently a mountain to climb for some.

Hey there are even contributors to this forum who purport to be financial geniuses but are unable to back up their ridiculous blandishments with hard facts, even when other posters ask them to do so.

I will try again. You are inferring that lower interest rates in Europe are more important than any other economic fundamentals such as extremely high unemployment rates? If that is the case can you please explain why low interest rates in Japan and USA ( participation rate has plunged to 1978 levels ) have not led to a meaningful revival of their economies?

In a debt crisis, households and corporates are struggling to stay afloat while being drowned by the level of debts they had got themselves into. Low interest rates have no meaning for them as they cannot take on even more debts, but instead have to spend larger parts of their income paying off what they have already owed.

Thus, deflation of the economy and high unemployment.

Not so. Debt is not necessarily fixed (it can be variable), it can have a term expiry (so needs to be rolled over) and might also be restructured (eg remortgage). So a lower interest rate is highly significant and for those who are able to reposition their debt rate variability is significant. Pushing my mortgage rate down from 5.7% to just over 1% certainly has made somewhat of a difference. On a slightly larger scale, Ireland has signalled its emergence from crisis by bonds falling from a frightening rate of over 10% in 2011 to below 4% this week. As Draghi has observed the recovery is fragile, but the lowering of bond prices in the PIIG economies is a positive step.

Edited January 11, 2014 by SheungWan

[trogers]

Hey there are even contributors to this forum who purport to be financial geniuses but are unable to back up their ridiculous blandishments with hard facts, even when other posters ask them to do so.

I will try again. You are inferring that lower interest rates in Europe are more important than any other economic fundamentals such as extremely high unemployment rates? If that is the case can you please explain why low interest rates in Japan and USA ( participation rate has plunged to 1978 levels ) have not led to a meaningful revival of their economies?

In a debt crisis, households and corporates are struggling to stay afloat while being drowned by the level of debts they had got themselves into. Low interest rates have no meaning for them as they cannot take on even more debts, but instead have to spend larger parts of their income paying off what they have already owed.

Thus, deflation of the economy and high unemployment.

Thank you trogers

“Low interest rates have no meaning for them as they cannot take on even more debts “

And so is there any reason the same doesn't apply in Europe?

Debtors’ prison

The euro zone is blighted by private debt even more than by government debt

http://www.economist.com/news/finance-and-economics/21588382-euro-zone-blighted-private-debt-even-more-government-debt-debtors

The worsening of a debt crisis has another dimension which was raised by Harry S. Dent, Jr in his book "The Great Crash Ahead" - demographic trends.

He postulated that should the economy has an aging population, meaning more of those employed are in their 40s and 50s, a larger portion of income will be spent paying down debts or for saving rather than for consumption due to their desire to secure more funds for retirement.

This group of people would already have kids leaving the family's nests, and would have lesser compulsion to spend on large ticket items using debts.

[Naam]

Not so. Debt is not necessarily fixed (it can be variable), it can have a term expiry (so needs to be rolled over) and might also be restructured (eg remortgage). So a lower interest rate is highly significant and for those who are able to reposition their debt rate variability is significant. Pushing my mortgage rate down from 5.7% to just over 1% certainly has made somewhat of a difference. On a slightly larger scale, Ireland has signalled its emergence from crisis by bonds falling from a frightening rate of over 10% in 2011 to below 4% this week. As Draghi has observed the recovery is fragile, but the lowering of bond prices in the PIIG economies is a positive step.

let's not forget that the main reason why the PIIGs pay less is that cash is searching desperately for yield. if somebody had told me a decade ago that i will look at bonds of BB rated debtors paying 8-9% i would have suggested immediate psychiatric treatment.

[SheungWan]

Not so. Debt is not necessarily fixed (it can be variable), it can have a term expiry (so needs to be rolled over) and might also be restructured (eg remortgage). So a lower interest rate is highly significant and for those who are able to reposition their debt rate variability is significant. Pushing my mortgage rate down from 5.7% to just over 1% certainly has made somewhat of a difference. On a slightly larger scale, Ireland has signalled its emergence from crisis by bonds falling from a frightening rate of over 10% in 2011 to below 4% this week. As Draghi has observed the recovery is fragile, but the lowering of bond prices in the PIIG economies is a positive step.

let's not forget that the main reason why the PIIGs pay less is that cash is searching desperately for yield. if somebody had told me a decade ago that i will look at bonds of BB rated debtors paying 8-9% i would have suggested immediate psychiatric treatment.

IMHO the demand for yield is still risk calibrated and that is a big jump for Ireland. More importantly, they have gone from a situation where debt servicing was a bust, embraced changes under IMF stewardship (plus a little help from the UK) which they have now exited and can begin at least now to consider clearing up some of the mess and try to implement a growth economy.

Edited January 11, 2014 by SheungWan

[MJP]

Any idea if MoneyWeek is right?

End Of Britain - The Plague of the Black Debt - Published 10th January 2014

http://www.youtube.com/watch?v=VfQVU7Ka0yc

WARNING: It's an hour long and I'm into the first 10 minutes and it's pretty miserable stuff.

[mccw]

I suggest people to read "the market oracle" in regards to UK house prices, debt, employment, inflation. Not afraid to forecast; I just received the outlook for the next 20 years- good stuff. Sign up free and get occasional thought provoking emails. I've been following it for over five years and he's been pretty much spot on.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[manarak]

"large depositors"... ok, can make sense "...of more than 100.000 EUR" <deleted>! I thought they meant large depositors only!

EDIT: que pasa ?? where is the post I replied to?

Edited January 11, 2014 by manarak

[SheungWan]

Any idea if MoneyWeek is right?

End Of Britain - The Plague of the Black Debt - Published 10th January 2014

http://www.youtube.com/watch?v=VfQVU7Ka0yc

WARNING: It's an hour long and I'm into the first 10 minutes and it's pretty miserable stuff.

Mind-numbingly tedious, but if you >> to minute 48 for the lowdown on what to do, its ta-raaaa take out a subscription to Money Week.

[MJP]

Any idea if MoneyWeek is right?

End Of Britain - The Plague of the Black Debt - Published 10th January 2014

http://www.youtube.com/watch?v=VfQVU7Ka0yc

WARNING: It's an hour long and I'm into the first 10 minutes and it's pretty miserable stuff.

Mind-numbingly tedious, but if you >> to minute 48 for the lowdown on what to do, its ta-raaaa take out a subscription to Money Week.

I turned it off and I'm watching Rush instead.

[midas]

Any idea if MoneyWeek is right?

End Of Britain - The Plague of the Black Debt - Published 10th January 2014

http://www.youtube.com/watch?v=VfQVU7Ka0yc

WARNING: It's an hour long and I'm into the first 10 minutes and it's pretty miserable stuff.

Mind-numbingly tedious, but if you >> to minute 48 for the lowdown on what to do, its ta-raaaa take out a subscription to Money Week.

I turned it off and I'm watching Rush instead.

You should have at least looked until 13.40 because it illustrates what you yourself wrote in #14524

Of course I can understand how SheungWan would anxiously like to poke holes in it because this would be equivalent to waving a cross in front of a vampire

Edited January 12, 2014 by midas

[MJP]

Any idea if MoneyWeek is right?

End Of Britain - The Plague of the Black Debt - Published 10th January 2014

http://www.youtube.com/watch?v=VfQVU7Ka0yc

WARNING: It's an hour long and I'm into the first 10 minutes and it's pretty miserable stuff.

Mind-numbingly tedious, but if you >> to minute 48 for the lowdown on what to do, its ta-raaaa take out a subscription to Money Week.

I turned it off and I'm watching Rush instead.

You should have at least looked until 13.40 because it illustrates what you yourself wrote in #14524

Of course I can understand how SheungWan would anxiously like to poke holes in it because this would be equivalent to waving a cross in front of a vampire

What a life James Hunt had! Died of a heart attack at 45.

Of course it's all going t!ts soon. It's bubble arithmetic. Once interest rates start rising (and they have already for a lot of mortgages, regardless of base rate) the maths simply doesn't add up for people on regular incomes. Government borrowing can't be sustained and IR's up on that too . . . you know where all this goes.

I'm amazed they've kept the plates spinning so long to be honest.

[midas]

Mean while: ""China Is Spending $100 Billion On 4,100 Miles Of New Railway Lines This Year"" -biz insider app That's 100billion just this year. While West spends fortunes buying worthless "toxic" paper with what to show for it? While there are masses of unemployed and infrastructure is crumbling & national assets and monuments collapsing or being sold off for peanuts. What a great system we have; what a relief we have adapted the rules to save the banks at all and every cost Personally I'd rather we reform to break the banks down to be utilities for business and nation building. Sent from my iPhone using Thaivisa Connect Thailand mobile app

robots are taking jobs, and it’s not a question of if, but when and how

[midas]

Mean while: ""China Is Spending $100 Billion On 4,100 Miles Of New Railway Lines This Year"" -biz insider app That's 100billion just this year. While West spends fortunes buying worthless "toxic" paper with what to show for it? While there are masses of unemployed and infrastructure is crumbling & national assets and monuments collapsing or being sold off for peanuts. What a great system we have; what a relief we have adapted the rules to save the banks at all and every cost Personally I'd rather we reform to break the banks down to be utilities for business and nation building. Sent from my iPhone using Thaivisa Connect Thailand mobile app

robots are taking jobs, and it’s not a question of if, but when and how

The San Francisco-based robotics company debuted its burger-preparing machine last year. It can whip up hundreds of burgers an hour, take custom orders, and it uses top-shelf ingredients for its inputs. Now Momentum is proposing a chain of ‘smart restaurants’ that eschew human cooks altogether.

[midas]

Declining bond rates are clearer than the above blah.

ROFL

Despite sovereign bond yields plumbing new record lows and the Prime Minister proclaiming (against Draghi's advice) that the nation has turned the corner and is out of the crisis; Spain's record unemployment and record loan delinquency is showing up in a major credit-creation-crushing way for small businesses. As Bloomberg's Jonathan Tyce reports, Spanish new business lending rates just experienced the largest 2-month surge in over a decade to their highest since 2008. At 4.04%, new business loans trade over 300bps above two-year sovereign debt (and are diverging) as the efforts of Europe's 'whatever it takes' central bank are being entirely wasted in terms of reaching the Keynesian growth-driving economy. We suspect this surge will once again raise talk of a rate-cut (and expose the impotence of the ECB's transmission mechanisms).

http://www.zerohedge.com/news/2014-01-14/spanish-lending-rates-soar-highest-2008

[SheungWan]

Poor old zerofudge losing their hold on the panic trade as the world returns to some sense of normality. But the copy and paste crowd live in their own bubble so never mind. One of the unfortunate consequences of dealing with the financial crisis was that the banks were (and still are) required to reduce their exposure to risk-weighted assets while at the same time increase their lending to business entities. Can't be done synonymously. The debt exposure for the EU banks took precedence so as economies contracted in response they also stabilised as they attempted to get their house in order. It is not impossible for divergent interest rate developments. However even if there is a say 300 bp difference in interest rates, if the govt bond rates decline as they have in Ireland from over 11% to under 4% then business rates are also declining in absolute terms. In the current period recovery is fragile and so riskier-weighted interest rates are subject to some fluctuation. In the UK, the government effectively by-passed the banks by providing financial incentives to home-buyers (since withdrawn) as the market came up against banks' contradictory impulses. One of the things that banks are wary of is they are damned if they do and damned if they don't. 2104 will be a further opportunity to advance loans to businesses at a lower rate as the fever further subsides as this is the opportunity for growth, but these arguments are really over the heads of the gold bugs who are merely looking for negative news to feed their end of the world obsessions.

Edited January 14, 2014 by SheungWan

[mccw]

Shengun "gov direct support for home owners (since withdrawn)"

Just for clarifies sake:

It's not with drawn- it's just getting going. The government "help to buy" scheme that is.

The Bank of England has withdrawn the "funding for lending" which was low interest cash to banks to then lend on to home owners.

Sent from my iPhone using Thaivisa Connect Thailand

[midas]

I was very surprised to read this because I always regarded

Singapore as the bastion of good governance

Why Singapore’s Economy Is Heading For An Iceland-Style Meltdown

When I arrived in Singapore in 2009 and secured a realtor to help me find an apartment, he told me that Asians were coming from all over the continent with large wads of cash in hand, begging him to find some property. Anything. Anywhere. All they wanted was some property in Singapore to invest in.in
Eventually I found an apartment, 1,800 sq ft, with a $4.8 million appraised value! (It's probably really worth about $750,000 max). I had to pay $9,800 per month in rent!
When the Asian meltdown comes, it will be catastrophic for prices of everything in Singapore. And I think it's teetering on the precipice.

http://stratrisks.com/geostrat/17491

Edited January 16, 2014 by midas

[SheungWan]

Shengun "gov direct support for home owners (since withdrawn)" Just for clarifies sake: It's not with drawn- it's just getting going. The government "help to buy" scheme that is. The Bank of England has withdrawn the "funding for lending" which was low interest cash to banks to then lend on to home owners. Sent from my iPhone using Thaivisa Connect Thailand

You are correct. Found this: https://www.gov.uk/affordable-home-ownership-schemes/overview

[midas]

Shengun "gov direct support for home owners (since withdrawn)" Just for clarifies sake: It's not with drawn- it's just getting going. The government "help to buy" scheme that is. The Bank of England has withdrawn the "funding for lending" which was low interest cash to banks to then lend on to home owners. Sent from my iPhone using Thaivisa Connect Thailand

You are correct. Found this: https://www.gov.uk/affordable-home-ownership-schemes/overview

hardly producing socially equitable results ?

Islington taxpayers lining pockets of private landlords in ‘right to buy’ shame

Taxpayers are being hit as nearly half of the homes ­intended for Islington’s poor families have fallen into the hands of private landlords ­demanding sky-high rents.

Shock figures released this week show a staggering 39 per cent of properties bought under the right to buy scheme in Islington are now being rented out by private landlords.

MPs have warned of a “divided” borough with the poorest families “driven out”. The crisis is costing the taxpayer millions, as poorer families need huge housing benefits to pay their private rent, due to the decline in the numbers of subsidised council homes.

http://www.islingtongazette.co.uk/news/islington_taxpayers_lining_pockets_of_private_landlords_in_right_to_buy_shame_1_3209486

Edited January 16, 2014 by midas

[mccw]

Housing benefit should be scrapped all together. Further council homes in city centres sold off for redevelopment and the proceeds put in to new affordable housing in cheaper areas and made with good public transport links. It's crazy that refugees, teenage mums, unemployed bums etc get to live in/ next door to million pound flats- what's the point of supporting them to be in such a location? Should send them up to places with plenty of spare houses like Northern Ireland or to take care themselves farming sheep in Wales or outer Shetlands something. Boarding and basic salary in exchange for labouring building schools, roads, street sweeping and such maybe. Still no need for central locations. People having to live in the real world can mostly only dream of being able to afford to live in such locations and have to deal with long comutes to work. While the unemployed live next door to the jobs but don't do a damn thing other than suck the tax out of the workers. It's the give away culture of the left that's distorted the system, not private landlords as the author try's to paint it; he displays typical idiotic guardianesq detachment from reality, chatting in dream worlds of fairy land high horses.

Shengun "gov direct support for home owners (since withdrawn)" Just for clarifies sake: It's not with drawn- it's just getting going. The government "help to buy" scheme that is. The Bank of England has withdrawn the "funding for lending" which was low interest cash to banks to then lend on to home owners. Sent from my iPhone using Thaivisa Connect Thailand

You are correct. Found this: https://www.gov.uk/affordable-home-ownership-schemes/overview

hardly producing socially equitable results ? Islington taxpayers lining pockets of private landlords in ‘right to buy’ shame

Taxpayers are being hit as nearly half of the homes ­intended for Islington’s poor families have fallen into the hands of private landlords ­demanding sky-high rents.Shock figures released this week show a staggering 39 per cent of properties bought under the right to buy scheme in Islington are now being rented out by private landlords.MPs have warned of a “divided” borough with the poorest families “driven out”. The crisis is costing the taxpayer millions, as poorer families need huge housing benefits to pay their private rent, due to the decline in the numbers of subsidised council homes.

http://www.islingtongazette.co.uk/news/islington_taxpayers_lining_pockets_of_private_landlords_in_right_to_buy_shame_1_3209486

Sent from my iPhone using Thaivisa Connect Thailand

[MJP]

Shengun "gov direct support for home owners (since withdrawn)" Just for clarifies sake: It's not with drawn- it's just getting going. The government "help to buy" scheme that is. The Bank of England has withdrawn the "funding for lending" which was low interest cash to banks to then lend on to home owners. Sent from my iPhone using Thaivisa Connect Thailand

You are correct. Found this: https://www.gov.uk/affordable-home-ownership-schemes/overview

“I believe it truly is a moronic policy that stands head and shoulders above most of the stupid economic policies I have seen implemented during my 30 years in this business,” - Albert Edwards, Societe Generale on the 'Help to Buy' scheme.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10101343/George-Osbornes-Help-to-Buy-is-moronic-says-respected-analyst.html

Edited January 16, 2014 by MJP

[mccw]

Shengun "gov direct support for home owners (since withdrawn)" Just for clarifies sake: It's not with drawn- it's just getting going. The government "help to buy" scheme that is. The Bank of England has withdrawn the "funding for lending" which was low interest cash to banks to then lend on to home owners. Sent from my iPhone using Thaivisa Connect Thailand

You are correct. Found this: https://www.gov.uk/affordable-home-ownership-schemes/overview

“I believe it truly is a moronic policy that stands head and shoulders above most of the stupid economic policies I have seen implemented during my 30 years in this business,” - Albert Edwards, Societe Generale on the 'Help to Buy' scheme.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10101343/George-Osbornes-Help-to-Buy-is-moronic-says-respected-analyst.html

Politically, it's a great move, if there is no collapse in the mean time, they'll boost economy right up to the next election.

Sent from my iPhone using Thaivisa Connect Thailand

[ffaarraanngg]

Shengun "gov direct support for home owners (since withdrawn)" Just for clarifies sake: It's not with drawn- it's just getting going. The government "help to buy" scheme that is. The Bank of England has withdrawn the "funding for lending" which was low interest cash to banks to then lend on to home owners. Sent from my iPhone using Thaivisa Connect Thailand

You are correct. Found this: https://www.gov.uk/affordable-home-ownership-schemes/overview

“I believe it truly is a moronic policy that stands head and shoulders above most of the stupid economic policies I have seen implemented during my 30 years in this business,” - Albert Edwards, Societe Generale on the 'Help to Buy' scheme.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10101343/George-Osbornes-Help-to-Buy-is-moronic-says-respected-analyst.html

Politically, it's a great move, if there is no collapse in the mean time, they'll boost economy right up to the next election.

Sent from my iPhone using Thaivisa Connect Thailand

Its not such a great move if he wins the election though, might be a good move to pass the hot potato to the 2 Eds.

I just cant see this so called good news lasting 16 months, someone might point out the govt debts rising by 120 billion a year and private debt is at a record high.

http://www.bbc.co.uk/news/business-25152556

[midas]

You are correct. Found this: https://www.gov.uk/affordable-home-ownership-schemes/overview

“I believe it truly is a moronic policy that stands head and shoulders above most of the stupid economic policies I have seen implemented during my 30 years in this business,” - Albert Edwards, Societe Generale on the 'Help to Buy' scheme.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10101343/George-Osbornes-Help-to-Buy-is-moronic-says-respected-analyst.html

Politically, it's a great move, if there is no collapse in the mean time, they'll boost economy right up to the next election.

Sent from my iPhone using Thaivisa Connect Thailand

Its not such a great move if he wins the election though, might be a good move to pass the hot potato to the 2 Eds.

I just cant see this so called good news lasting 16 months, someone might point out the govt debts rising by 120 billion a year and private debt is at a record high.

http://www.bbc.co.uk/news/business-25152556

From the article

" The news of the record debt level may increase concerns that the UK's recovery is based on increased borrowing, rather than growth sustained by rising incomes."

Growth from rising incomes?

[MJP]

^^ @fffaaarrranngg . . .

£120Bn a year.

Makes the pile of rice here look like, well . . . a pile of rice.

We won't really know how bad it will get for the likes of dear old Blighty until rates really start to rise.

[ffaarraanngg]

^^ @fffaaarrranngg . . .

£120Bn a year.

Makes the pile of rice here look like, well . . . a pile of rice.

We won't really know how bad it will get for the likes of dear old Blighty until rates really start to rise.

It'll be much worse than last time as then every western was doing the house price inflation and consumer debt binge to pretend the economy was growing, next time we'll be in deeper shyt all by ourselves and hopefully without the Scottish.

Most other nations have had a property crash of varying degrees, this utter moron is pouring god knows how many billions into a new one, after giving a trillion or so to the banks and feckless to prop up the last bubble.

I leave the country tomorrow on my return i hope for a crash of epic proportions and UKIP to walk the European elections, 2 things that can possibly save Britain if it isn't dead already.

Edited January 18, 2014 by ffaarraanngg