Reply to: UK v eurozone debt

[OwlHoot]

.. We are merely slowing the rate at which the debt will increase - to the point that 4-5 years from now, it will cease to get any worse - and that's if Plan A works. ..

which it won't, because growth forecasts are in the best tradition of Hans Andersen

[Doggy Styles]

hmm

Osborne to miss deficit target as UK economy stalls and unemployment rises | Business | The Guardian

Yes the eurozone crisis is hitting everyone outside it too.

If you are going to cherry-pick short-term data, why didn't you pick this? Surprise rise in retail sales

I don't set too much store by either of them.

[BlasterBates]

hmm

Osborne to miss deficit target as UK economy stalls and unemployment rises | Business | The Guardian

[Doggy Styles]

Except that isn't Plan A - we are not paying it down at all. We are merely slowing the rate at which the debt will increase - to the point that 4-5 years from now, it will cease to get any worse - and that's if Plan A works.

We have no plan for actually paying the debt down.

That - is why we're all tulipped

I think you've had a reality bypass. Plan A is to turn the deficit into a surplus over a period of time. There's no other way. What did you expect us to do - go and rob the bank of China and pay it off tomorrow?

It's the direction we're going in that matters. The markets tell you that. And the UK's ability to put such a policy into practice really pisses off Sarkhozy, Merkel and the rest stuck in the eurozone.

[centurian]

As a householder, a 250K mortgage is OK while you are paying it down. Hence UK's Plan A to get to that position.

Except that isn't Plan A - we are not paying it down at all. We are merely slowing the rate at which the debt will increase - to the point that 4-5 years from now, it will cease to get any worse - and that's if Plan A works.

We have no plan for actually paying the debt down.

That - is why we're all tulipped

[scooterscot]

I think it's land prices that have shot up due to people willing to pay £100k for a small piece of land with planning permission that would otherwise be worth under 5k.

Seriously check out the cost of brown field sites in around London if that's your thing, acres about costing next to nothing.

[PAH]

The materials to build said house I'll bet never cost anywhere near £200k, unless you believe these stupid pre-2008 DIY house programmes.

I think it's land prices that have shot up due to people willing to pay £100k for a small piece of land with planning permission that would otherwise be worth under 5k.

Labour and materials probably haven't risen that dramatically, now the construction industry is in limbo they may even be falling.

Maybe the proposed changes to the planning system will make it easier and therefore cheaper to find plots of land with permission to build on. If it becomes cheaper to build than buy then ready built prices may come down accordingly.

[DodgyAgent]

Cost and price are not the same thing. The cost of materials to build said house are nearly always multiple reductions of the asking price.

Borrowing anything north of £100K to make said price IMO is

If a house costs £300K and you're gross income is ~£80k move on you cannot afford it, how people were tricked into believing they could has been one of the greatest swindles of the 20th century.

You remind me of the "you dont wanna do it like that" know all character from harry Enfield

[scooterscot]

Weren't you pointing out the price of houses in Munich recently?

Cost and price are not the same thing. The cost of materials to build said house are nearly always multiple reductions of the asking price.

Borrowing anything north of £100K to make said price IMO is

If a house costs £300K and you're gross income is ~£80k move on you cannot afford it, how people were tricked into believing they could has been one of the greatest swindles of the 20th century.

[Arturo Bassick]

WHS with bells on.

The materials to build said house I'll bet never cost anywhere near £200k, unless you believe these stupid pre-2008 DIY house programmes.

Weren't you pointing out the price of houses in Munich recently?

[scooterscot]

Don't think it's particularly large if IIRC the current/recent average house price is around £200k (when including London ), yet the average wage is still barely above £20k.

I find it hard to comprehend how the gen pop are ok with houses costing so much, having doubled or trippled in the last 10 years, yet their wages are still much the same. They're effectively paying more for the same yet feel better off because they have all this equity on paper if they were to sell up, ignoring the cost of buying the next place.

WHS with bells on.

The materials to build said house I'll bet never cost anywhere near £200k, unless you believe these stupid pre-2008 DIY house programmes.

[PAH]

I chose a large debt to make the point

Don't think it's particularly large if IIRC the current/recent average house price is around £200k (when including London ), yet the average wage is still barely above £20k.

I find it hard to comprehend how the gen pop are ok with houses costing so much, having doubled or trippled in the last 10 years, yet their wages are still much the same. They're effectively paying more for the same yet feel better off because they have all this equity on paper if they were to sell up, ignoring the cost of buying the next place.

Still, while I have friends who spend every penny each month and have all the latest gadgets, tat and new cars I'd prefer to keep a large warchest and no debt while driving a banger.

It also helps keep the gold diggers away, I look like I'm skint.

[MrRobin]

"Annual income twenty pounds, result misery."

FTFY

[Arturo Bassick]

"Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

[Doggy Styles]

Feck me no wonder we're down the tubes with the perception that this is an acceptable debt.

Nope, never said that. I said it was OK as long as you are paying it down, which you edited out.

I chose a large debt to make the point.

HTH