Mervyn King warns against 'premature' interest rate rises

[scooterscot]

That kind of thinking will have you living in a bedsit, driving a clapped-out Pug, and ensuring that your sex life is held entirely in your own hands.
One life alexei...............try living it.
You might be pleasantly surprised.

HTH

Stopped paying into pension pot here too, two houses in the UK let out at silly high rents is making a far better return at the moment.

[bobspud]

So, your point is that from now on Govt found magical solution to this problem and funds will stop losing money during crashes, because there will no longer be booms and busts?

Personally I do not pay into any pension fund because I am positive that well before I retire those funds will be raided by Govt to bail out ponzi scheme of the social security system. They don't have balls to increase working age and brains to get the economy to provide jobs to such old people in the first place.

No I am saying that saving is mostly pointless because inflation steals the spending power year on year and investment vehicles that might be able to out run the effects of inflation are setup specifically aimed at raping small investors. In the good times they take vast amounts of cash in administration fees and other costs then when the market cyclically crashes they look at you and say: "Never mind better luck next time..." Knowing full well they have hedged their private funds and gained on the way down and up for the dead cat bounce...

You are ignorant of the facts of this economy if you think that anyone would survive an economic correction based on leaving every house holder in the country in negative equity. For a start off unless you have your nest egg under a matrice it is likely to be lost once the banks start to collapse due to the fact that the assets on their books no longer match the cash lent to the market.

There is also a darker side to this"
For those of you think that saving is a good idea, take in into consideration that when the tulip really hits your fan, and your world collapses you will lose your house in the first three months or you might have access to a warchest to take to 15 months but you will loose that house in the end.

The process for the unwitting middle class chump that falls on hard times is:
1) Spend life saving savings (all of them!)
2) Sell house and get a smaller place
3) Spend any remaining equity
repeat until

Are you broke yet?

Now you can get state help...

When my hard times hit, the thing that I learned is that creditors love the idiots that have plenty of equity in their house because it makes it far more worth while to bankrupt you. The only reason I still own my house is because there wasn't enough cash left in equity when the market collapsed in 2008. I had the wonderful pleasure of telling all the lenders on the unsecured cards that I held money on to **** off and die. In the end they took 20p in the pound as a full and final settlement. However Their number one aim up to that point was take unsecured debt and find a way to inflate it then make it secured on your home then call in the bankruptcy process... How much did I owe them? less than 5k.

[scooterscot]

Just hope folks manage to get their assets out of the pound soon.

[bobspud]

Just hope folks manage to get their assets out of the pound soon.

Why do you think the dollar or any other currency is safe? especially the Euro..

[Ticktock]

Stingey koont. You probably still live at home sponging off your parents and blaming your woes on the nasty baby-boomers.



And you drive a vintage Pug and are too tight to get laid Alexei, so nuff said there.

Wot a nob

The only complaint I have about house prices is that they are massively out of whack with salaries. When I was a permie i certainly couldn't afford to buy in the area where I worked, unless I was willing to knowingly borrow more than I could afford to pay back, like so many others did.
I don't blame the prices on baby-boomers - I blame them on the my generation not having the patience to wait until they could afford a place, instead wanting to "buy right now", encouraged by lenders bending over backwards to offer money any way they could - mortgage terms until your 80, 5 times salary, 120% of value, etc.

As for the personal comments. Again, wot a nob.

[bobspud]

Wot a nob

The only complaint I have about house prices is that they are massively out of whack with salaries. When I was a permie i certainly couldn't afford to buy in the area where I worked, unless I was willing to knowingly borrow more than I could afford to pay back, like so many others did.
I don't blame the prices on baby-boomers - I blame them on the my generation not having the patience to wait until they could afford a place, instead wanting to "buy right now", encouraged by lenders bending over backwards to offer money any way they could - mortgage terms until your 80, 5 times salary, 120% of value, etc.

As for the personal comments. Again, wot a nob.

Maybe you missed all the media scare stories about poor couples that were sat in the local Starbucks moaning about how the house prices were going up faster than they could save a deposit? Wishing to see them suffer because the system was pushing their survival buttons is crass. Maybe you are a post thatcher child and think you have an entitlement to own your home, but the fact is for most of history, property ownership was outside the grasp of the average person and with the population shape changing its not going to go change anytime soon.

[Old Hack]

House prices will not crash again, they might dip, they might drop a little, but I simply can't see a crash for the one reason alone, in that it will bring a government down, and they're all vapid short term thinking backside protectors.

[suityou01]

House prices will not crash again, they might dip, they might drop a little, but I simply can't see a crash for the one reason alone, in that it will bring a government down, and they're all vapid short term thinking backside protectors.

I see. With that logic it's fill yer boots time.

Is it me, or does this have 1992 written all over it?

[scooterscot]

Why do you think the dollar or any other currency is safe? especially the Euro..

I think the euro safer because of the vested interest in maintaining it by the states that use it. What I mean is, there are many governments involved in maintaining the euro, it's not going to disappear overnight no matter how many articles the telegraph publishes.

The only other currency that is used by multiple governments is the dollar. But I'm holding judgment on that until the QE tap is turned off.

The pound for me, nothing wrong with it, but I can only see it's value going down in the future years. There's little in the way of exports demanded by the world that could justify an increase in value.

[scooterscot]

The only complaint I have about house prices is that they are massively out of whack with salaries.

I've never understood this. If something is too expensive then you cannot afford it. What has that got to do with your employer?

Your complaint is about the standard of living that you've become a custom to, believing it is your right.