Under 45? Oh dear!

[PurpleGorilla]

You are not alone. They are crazy. Battulip crazy.

[emoji90] Indeed [emoji90]

[Zero Liability]

Tempered by stricter lending practices.

It wasn't just that. Monetarism had just entered the scene and the government could still not restrain its borrowing habits, which put pressure on interest rates. Those rates were not the product of market forces (much like ZIRP/NIRP is not) but of "experimentation". Of course society has become so debt-addicted that the positive side of higher interest rates - saving is more rewarding - is weighed down by the fact that it makes it pricier to borrow, even though you may not have to borrow if saving were more rewarding. Thus the compulsion to keep interest rates down at stupidly low levels, fuelling demand for credit, pushing up housing prices, stimulating the demand for credit...

I also don't believe globalisation would be such a huge problem if the government had more sensible domestic policies, rather than trying to run a ponzi scheme economy. The rest of the world was bound to develop at some point and there is no stopping that.

[PurpleGorilla]

It wasn't just that. Monetarism had just entered the scene and the government could still not restrain its borrowing habits, which put pressure on interest rates. Those rates were not the product of market forces (much like ZIRP/NIRP is not) but of "experimentation". Of course society has become so debt-addicted that the positive side of higher interest rates - saving is more rewarding - is weighed down by the fact that it makes it pricier to borrow, even though you may not have to borrow if saving were more rewarding. Thus the compulsion to keep interest rates down at stupidly low levels, fuelling demand for credit, pushing up housing prices, stimulating the demand for credit...

I also don't believe globalisation would be such a huge problem if the government had more sensible domestic policies, rather than trying to run a ponzi scheme economy. The rest of the world was bound to develop at some point and there is no stopping that.

When do you think it is going to go pop?

[SueEllen]

Why do you always use 1990? You pick an extreme to try and make a point.

1985 teachers average salary £25k average house £34k, rates 11%

2014 teachers average salary £55k average house £195k rates .5%

You made those teachers wages up.

[expat]

Why do you always use 1990? You pick an extreme to try and make a point.

1985 teachers average salary £25k average house £34k, rates 11%

2014 teachers average salary £55k average house £195k rates .5%

I don't believe that. Average teacher's salary in 1985 was more like £10k, maybe even less. And like most of the professions it was a long slow climb up to the average for the profession: I wouldn't be surprised if the average teacher on the average teacher's salary were aged about 45 back then, so not relevant to the complain in the OP title.

Edit: WSES.

Edit: £9950

[BlasterBates]

Here are teacher's salaries from 1985, starting salary was 6.5 grand

http://hansard.millbanksystems.com/w...s-salary-rates

Graduate starting salary about 6.5 grand and salaries rose slowly, house price 35 grand, multiple 5.23 interest rates 11.5 % NOTE INTEREST RATE 11.5%

I'll repeat that just in case it gets overlooked, interest rate 11.5%

calculate the mortgage at 5 times earnings when interest rates are at 11-12 %

[MrMarkyMark]

1985 teachers average salary £25k average house £34k, rates 11%

Ballcocks, just not true at all.

You shouldn't discredit your arguments with fantasy, you will not persuade any of us old dogs (i.e. Me), on here, with that approach.

[PurpleGorilla]

Under 45? Oh dear!

Ballcocks, just not true at all.

You shouldn't discredit your arguments with fantasy, you will not persuade any of us old dogs (i.e. Me), on here, with that approach.

I can't find any descent stats... Just found this...

http://dera.ioe.ac.uk/22821/1/SN01877.pdf

My bad - might have used US data by mistake. Apologies.... It didn't look right at the time TBH...

Ps: I do try to underpin my arguments with data. I don't think any of you could not say I have a strong love of data visualisation!

[MrMarkyMark]

My bad. I think I used US data by mistake. I thought it didn't look right at the time.

Fair enough, less of an argument there, now then.

FWIW, I own no property either.

Cash rich, I could easily buy, I just don't want to at the moment, for obvious reasons.
i.e. I can't see the UK Ponzi property scheme rumbling on forever.

That's what makes other countries look attractive, try and think out of the box

[PurpleGorilla]

Fair enough, less of an argument there, now then.

FWIW, I own no property either.

Cash rich, I could easily buy, I just don't want to at the moment, for obvious reasons.
i.e. I can't see the UK Ponzi property scheme rumbling on forever.

That's what makes other countries look attractive, try and think out of the box

I'm mainly cash invested, and looking to get some gold. My work is mainly UK or US based, Europe etc there is less call for my specific skills.