Why do papers make out its sad news when the most expensive thing you'll ever buy ...

[MrMark]

Part of the spin-the-wheel and take your chances nature of the housing market. I say tough. If the market had been made more stable then a great deal of this would have been avoided. In general the cheaper the housing the better for everyone.

Well I suspect you're right. Trouble is, if prices are declining, people hold off buying, and construction companies (and wine bars) go bust. Someone somewhere gets hurt.

[ItsQuickerAntiClockwise]

OK, here we go again:

Have saved £50k. Bought a house for £250k. Put down 20% deposit, have mortgage of £200k. House prices drop by 20%. House now worth £200k. Want to sell up and buy somewhere else? OK, sell for £200k. No problem, new house only costs £200k. Now go to Building society and say you want a mortgage for the new house. But now you have 0% deposit.

That's why. Not because of lost opportunity to profiteer. Because of lost deposit, and in some cases more.

So what?

The only people who lose out are those who bought at the top end of the market and contributed to the housing bubble by buying at inflated prices with low deposits.

I have zero sympathy for these people.

So still no problem as far as Im concerned.

[shaunbhoy]

So still no problem as far as Im concerned.

Oi ItsThickerAntiClockwise!!
Leave the Property Market discussions to the grown-ups.

[ItsQuickerAntiClockwise]

Oi ItsThickerAntiClockwise!!
Leave the Property Market discussions to the grown-ups.

These would be the same grownups who complain about their warchest running dry after 3 months because even though they are contractors they failed to save for a rainy day???

[shaunbhoy]

These would be the same grownups who complain about their warchest running dry after 3 months because even though they are contractors they failed to save for a rainy day???

No.
Wrong again. Getting to be a habit of yours.
Stick to lurking until you can string some sensible posts together.

[HairyArsedBloke]

Deflation

[ItsQuickerAntiClockwise]

No.
Wrong again. Getting to be a habit of yours.
Stick to lurking until you can string some sensible posts together.

I don't do lurking. Im here as a shining light to expose some of the 'boys club' element that goes on in here.

[shaunbhoy]

I don't do lurking. Im here as a shining light to expose some of the 'boys club' element that goes on in here.

Well your 2 watt bulb needs upgrading then.

[Not So Wise]

Probably because most reporters are mortgaged up to the hilt because they bought properties they could never have got without the stupid lending over the last decade, same as their readers

[CheeseSlice]

Hmm the German hyper-inflation suddenly took hold about 2 years after their bank had boosted the money supply...can anyone remind us when QE started in the UK?

The Death of Paper Money by Ambrose Evans-Pritchard

According to this, 5th of March 2009, so just over 18 months

Although we live in different times I do start to worry about the way BoE is trying something that (from what I've read) they have no hard evidence of what will happen. Both lowering the bank rate of borrowing and using QE both seem to take up to 2 years to take full affect, both of which have the effect of increasing inflation. All the BoE is trying to do is satisfy the short term need for money in the economy the form of credit and spending, not increase inflation.