SPEN555

Excellent, let the market sort itself out, i.e. price correction in house values.

lozgti

As soon as they talked about the £50 billion it smacked of desperation,not economic brilliance .

The market will sort itself out

pslewis

12 Million Mortgages

on

26 Million Homes

Most people are simply not affected by the Mortgage state ....... Labour - KEEP YOUR NOSES OUT!!

Klaatu

The BoE created this very system of interest bearing debt about 300 years ago.

ditchmyster

iTrader: (7)

I'll say it again for those that wer'nt listening the first time "Houses are not over valued" its the people who have taken out a 125% mortgage that are going to have the problem. and will attempt to bring the rest of us down with them! what better way to secure your business long term profit forcast than to lend greedy people money over a 25yr period,and then get them to buy consumable goods with the 25% excess that wont last a fith of that time, why do you think the media are talking down the housing market? its because the same people that own the newspapers are the same people that have invested in the stock market and need to write off thier losses, and appease the share holders who are happy to take profit but not so keen on loss! as they see billions wiped off the value of thier stock,they are also the people that have money in the banks and loan it to us at extorsonate rates! and guess what even more people will need to borrow to keep themsevels afloat during the "current crisis" now my views may be slightly left of centre but there not too far off the mark!! oh and then they sell us the bad debt as well fantastic!!!

Klaatu

Well said!

Paul3446

Quote: PSLewis
"
12 Million Mortgages

on

26 Million Homes

Most people are simply not affected by the Mortgage state ....... Labour - KEEP YOUR NOSES OUT!! "


But you love Labour, how can you say this?

SPEN555

Houses are over valued thats why they are starting to fall. The reason they are inflated is because of your comments above.

pslewis

Of course houses are over-valued ... or their values would not fall ... and they are most certainly falling!

ditchmyster

iTrader: (7)

as has been said before you can talk a load of rubbish mr lewis the lenders and borrowers have simultainiously over extended themselves by lending / borrowing money to an extent that bears no relation to the property on which it is secured!! its not the same as a property being over valued!
the first party in thier greed to earn as much commision/ interest as possible has allowed the second party to take out a sum over and above the value of the security for said loan! so now that the sub prime market has fallen on its *** they need to manipulate the market to bring thier losses into line! and the way to do that is to spread the loss as far and wide as possible to minimise the scale of there personal losses!! let me put another way!! ring ,ring,hello, err hi is tony there no he's fooked off to swan around the world and get paid the millions you promised him for going along with that wmd bolax! oh yeh i forgot; is that james, no james brown is dead this is gordon; ok sorry i forgot! well its like this james, our guys kinda messed up a little, we lent some dumb *** hillbillys a load of cash so they would vote for us again, and guess what they decided they liked it better in the trailer park "dont wana live in no fancy house" and spent the cash on guns,booze and ******, and now they wont pay it back ,so im gona need you guys to bend over again and take it in the ***!

Petem95

Well the markets loved that £50b bail-out then... not!

Everything Labour does fails! I think the banks have realised this is going to be a big correction - they clearly do not want to lend money at all, and it doesn't look like thats going to change for a long while!

Labour's attempts to stop this housing crash dwarfing the 90's crash have failed - this one will be a biggie.

On the negative side we are probably looking at a decade of economic decline which probably wont be nice for anyone, but the price was always going to be paid for the crazy debt-fueled binge of the last decade.

marky1

Not just about trying to bail out the housing market - in fact this is far from the major point of this. It's being done to get the interbank market working again. You should look at it more along the lines of trying to bail out the economy rather than just housing.

boxst

The Daily Mash - DARLING TELLS IDIOTS TO HELP THEMSELVES

Leslie

I think that the banks should be left to sort out the mess that they and their dishonest traders have got them into without the taxpayer having to underwrite them for the authorities' sake.

Les

PeteBrant

Come again?

So the lenders and borrows have been lending/borrowing more than the property is worth, but the housing market isn't overvalued.

Can you explain that logic?

marky1

Not sure they would be able to sort themselves out Les. If they were left it would turn into a real mess and the economy would go down the pan. There would be huge unemployment. What is being done is probably the cheapest option for the tax payer. Also in theory there is no cost to the tax payer, the banks are being lent bonds they can swap with each other, in return for mortgage securities, but the risk on the securitiy stays with the banks and they have to make up for any drop in value by providing more assets or handing back some bonds.

Leslie

Yes but those securities will doubtless be largely sub prime mortgages which means that our tax money is being put at great risk surely! Unemployment amongst those incompetents who engineered all these problems by taking on dangerously weak mortgages in order to get the bonuses would not be a bad thing in my mind. It is the greed of the banking personnel who have brought all this about and as far as I am concerned-they should pay the price. Artificially bolstering up the prices of overvalued housing is just extending the problem as far as I can see.

Les

Luan Pra bang

What about the unemployment in other areas that will result from a crash ?

PeteBrant

I don't think there is a way out of it unfortunately. Either you take the hit now, or you take it, only worse, in a few years time.

One of two thing need to happen - Either property prices come down, or, the ratio between average earnings and average house price comes down significantly through increase in wages. Since this is unlikely, the only available option is for house prices to adjust.

Keeping them afloat artificially only delays the inevitable as far as I can see, and just makes it worse when it does go.

lozgti

Will anybody miss Estate Agents and HIPS pack providers?

Luan Pra bang

How about Restaurants Bars etc ? what about the companies who supply Drinks to the On Trade ? What about the Pub Landlords. What about the companies who supply and maintain Catering equipment ? What about the Mechanics who maintain the Vehicles used to deliver food and drink across the whole country ?

lozgti

Are you really saying the whole country is dependant upon a housing market and this is what might happen if it goes pear shaped?

I think you are right

This country has spent merrily for 10 years on borrowed money because everyone thinks they are rich because of their houses.

Obviously why the government is so desperate not to see that feel good housing factor go to the wall.Try and keep the banks and spendaholic brits on heat

Leslie

Unemployment in other areas will be largely dependent on the ruination of the economy at large by the oafs who are supposed to be running the country!

Les

SPEN555

Magnified by the fact this country's economy is heavily dependent on Finanacial Services and especially so with the demise of manufacturing in this country.

Ghetto Dude3

the more i see threads like this, the more i think i did the right thing in NOT jumping on the housing market, everybody needs somewhere to live at the end of the day, but people do tend to get to sucked in with the whole "my house is worth rahhhhhhhh bloody rahhhhhhh"

its getting ridicules, i will be honest, in that i dont understand how most of this stuff works at the best of times, but i personally feel i am in a FAR better position then most of my mates who are "chuckied up to ****" with credit

i dont have any debt, i also have next to nothing in savings due to me clearing all previous debt, but i feel i am actually in a strong position at the moment, my rent has never went up in 3 years, so i would assume the landlord owns the property and my rent is simply beer money for them, doubtful the rent will go up while i am tenant, so now that the debt is cleared (last of it went in march) i have a large amount of disposable cash, that can be used for pretty much anything.

unfortunately the wifey is up to her eyeballs in student debt so i am thinking buying a joint house will be a few years away anyway

jjones

better get saving for a deposit then because 100% mortgages are a thing of the past.

Ghetto Dude3

with vast amounts of new disposable income, i really can not see that as a problem

i was not aware that self employed chaps could get a 100% mortgage anyway ??

jjones

that's what self cert mortgages were/are all about. lie about income and get whatever amount you like.

you say you have no savings, so maybe this "vast amount" of disposable income isn't as vast as you make out?

unclebuck

Unless he is a crack dealing pimp and sex slave trafficer from eastern europe.

But we are supposed to welcome such people as making a valuable contribution to our economy according to 'New' Labour.

fast bloke

Can you tell me who the last lender to do a 100% self cert mortgage was? I haven't found one in 6 years as a financial advisor, so I am hoping you can tell me what I have missed