Reply to: "Alice in Wongaland" economy?

[AtW]

More annoying for the Chinese who bought tons of UK debt and are never going to see a return on it.

They will or else.

[vetran]

If the economy is doing so well why is there still a need for HomeBuy? I'm not denying the economy looks better, and things are picking up, but the housing market is in the tulip. Houses are overvalued and there needs to be a correction. The average house price is around £250k, with a 20% deposit you would need to be earning 50k to be able to buy a house at that value. Foreign and BTL investors are keeping the prices high, but there is evidence that a lot of people are pulling out of the top end of the market (average house prices have actually dropped n 2 most expensive London boroughs).

we don't. We need what Carney did and now there are good fixed low rate mortgages.

Plus we need to spend the money spreading business around the UK.

[eek]

If the economy is doing so well why is there still a need for HomeBuy? I'm not denying the economy looks better, and things are picking up, but the housing market is in the tulip. Houses are overvalued and there needs to be a correction. The average house price is around £250k, with a 20% deposit you would need to be earning 50k to be able to buy a house at that value. Foreign and BTL investors are keeping the prices high, but there is evidence that a lot of people are pulling out of the top end of the market (average house prices have actually dropped n 2 most expensive London boroughs).

Your answer is in your statement. Homebuy makes that overpriced house look affordable to some people and that is why it works.

[RedSauce]

1) when have the left wing media ever done anything to help the conservatives? I seriously cannot think of one occasion. Sure they attack the pricks on the other side but thats just cos its so bloody easy...

2) How does ramping a bubble before you pop it do you any good when you know you have an election set in stone for the same time the tulip hits the fan?

I have a far better weather vein for the economy. A local mechanic that I know only services commercial vehicles (plus the occasional mate). When the tulip hit the fan in 2008 he was empty for weeks... Van drivers wont spend money on van servicing at the best of times but if it is rocky you can bet that they are not spending anything at all. But over the last year he has been doing more and more business to a point that he is working almost 7 days a week to keep the backlog down. He has been saying for months that regardless what people are saying on the news people have got their books in order over the last few years and now there is cash in the economy. (I am seeing the same in my business client as well, They have so many multi million pound bids on the go at the moment, they are struggling to write then... )

Tough luck if you have a Labour agenda or are looking for a bad news story

If the economy is doing so well why is there still a need for HomeBuy? I'm not denying the economy looks better, and things are picking up, but the housing market is in the tulip. Houses are overvalued and there needs to be a correction. The average house price is around £250k, with a 20% deposit you would need to be earning 50k to be able to buy a house at that value. Foreign and BTL investors are keeping the prices high, but there is evidence that a lot of people are pulling out of the top end of the market (average house prices have actually dropped n 2 most expensive London boroughs).

[DimPrawn]

You lot are making the usual limited IT geek conclusions: conflating your personal circumstances and assuming the whole country is like you.
There are plenty of businesses, large and small, that are adding value and improving the balance of payments by exporting goods and/or services abroad.
I am one.
HTH

You are one what?

Answers on a postcard to:

CUK Cretin of the Day Competition
PO Box 999
Fantasy Land
CR1 3TIN

[bobspud]

It's all about to burst and the government are scrambling to do anything in their power to stop it. Do you think it was a coincidence that nearly all newspapers and channels did stories about how strong the economy was yesterday?

I think the government are getting ready to pull the plug on government backed subprime (HomeBuy) and are ramping up some momentum in the housing market before.

1) when have the left wing media ever done anything to help the conservatives? I seriously cannot think of one occasion. Sure they attack the pricks on the other side but thats just cos its so bloody easy...

2) How does ramping a bubble before you pop it do you any good when you know you have an election set in stone for the same time the tulip hits the fan?

I have a far better weather vein for the economy. A local mechanic that I know only services commercial vehicles (plus the occasional mate). When the tulip hit the fan in 2008 he was empty for weeks... Van drivers wont spend money on van servicing at the best of times but if it is rocky you can bet that they are not spending anything at all. But over the last year he has been doing more and more business to a point that he is working almost 7 days a week to keep the backlog down. He has been saying for months that regardless what people are saying on the news people have got their books in order over the last few years and now there is cash in the economy. (I am seeing the same in my business client as well, They have so many multi million pound bids on the go at the moment, they are struggling to write then... )

Tough luck if you have a Labour agenda or are looking for a bad news story

[amcdonald]

I think the plan is for DC to get through the next general election, let the correction happen then he has 4 years to rebuild the economy before the next GE.

Labour could replace Millipede with Kim Jong-un and still get in

The electorate has a short memory, and no doubt have already forgotten who bankrupted us

All they need to do is promise to spend more than the Tories and lie that they won't increase taxes

[RedSauce]

You lot are making the usual limited IT geek conclusions: conflating your personal circumstances and assuming the whole country is like you.
There are plenty of businesses, large and small, that are adding value and improving the balance of payments by exporting goods and/or services abroad.
I am one.
HTH

England's biggest export during the financial crisis was housing, now we are reimporting it from the foreign investors.

[scooterscot]

There are plenty of businesses, large and small, that are adding value and improving the balance of payments by exporting goods and/or services abroad.
I am one.
HTH

I din't realise shelf packing was exportable?

[sasguru]

You lot are making the usual limited IT geek conclusions: conflating your personal circumstances and assuming the whole country is like you.
There are plenty of businesses, large and small, that are adding value and improving the balance of payments by exporting goods and/or services abroad.
I am one.
HTH

[RedSauce]

It's all very well, but inherently wrong. And we know it.

The £ will succumb to even greater pressure, with the UK eventually sleep walking into joining the euro. Savers will move what little wealth they have away, increasing strain on lending for new business.

Failed short term policy making, we may as well go to Vegas and spend the money there, we'd get a better return.

I think the plan is for DC to get through the next general election, let the correction happen then he has 4 years to rebuild the economy before the next GE.

[scooterscot]

It's all very well, but inherently wrong. And we know it.

The £ will succumb to even greater pressure, with the UK eventually sleep walking into joining the euro. Savers will move what little wealth they have away, increasing strain on lending for new business.

Failed short term policy making, we may as well go to Vegas and spend the money there, we'd get a better return.

[BrilloPad]

We have the wrong sort of recovery - its unsustainable. But as long as it keeps going until after the next election then DC will be happy.

However will be tough for him as I think 2014 will be bad for Eurozone. But then I said that about 2012.

[RedSauce]

It's all about to burst and the government are scrambling to do anything in their power to stop it. Do you think it was a coincidence that nearly all newspapers and channels did stories about how strong the economy was yesterday?

I think the government are getting ready to pull the plug on government backed subprime (HomeBuy) and are ramping up some momentum in the housing market before.

[BrilloPad]

Isn't it the perfect economy?

No need for productive industry, just print money to buy your own debt, whilst we all sell our houses to each other at higher and higher prices and spend the "profits" on luxury goods.

It must be very annoying to the Germans to see us so wealthy in our mega expensive homes whilst they slave over the next Porsche or Audi in a factory somewhere....

More annoying for the Chinese who bought tons of UK debt and are never going to see a return on it.