Re: real house prices double under 'new' labour....clown continues to destroy living standards in britain

On Sat, 27 Oct 2007 07:01:11 -0700, joblard@xxxxxxxxxxxx wrote:

On 27 Oct, 12:16, abelard <abela...@xxxxxxxxxxx> wrote:
On Sat, 27 Oct 2007 02:35:24 -0700, jobl...@xxxxxxxxxxxx wrote:
On 26 Oct, 17:15, abelard <abela...@xxxxxxxxxxx> wrote:
it is increasingly difficult for young people to buy their own home
in 'new' labour britain

one of the best measures of genuine living standards is to match
earning power by comparing the cost of goods in terms of wages
at two different times.....

eg if it cost you 3 hours work to buy your lunch ten years ago...
and it now costs you 2 hours work....then you are better off...
if it now cost you 4 hours work....you are worse off...

it now costs 7 years wages to buy a house in the clown's britain...
when 'new' labour came to power it cost 3 1/2 years wages

And why is this? I will tell you; cheap, easy-to-obtain, credit. And
why has credit been cheap and easy to obtain? Because the Bank of
England sets interest rates, so the Government no longer has the power
to exert a 'credit squeeze'.

balls...the boe is only loosely independent.....
it has to follow strict rules set by the clown based on
figures fiddled by the clown....

and then when brown doesn't like it....the boe is over-ruled
by the clown as with the northern crock collapse....
and the boe governor used as a fall guy....

Thus rates are driven down, as lenders
compete for custom. Also, because of deregulation in the banking
sector, there has been a proliferation of lenders, competing for
borrowers' business.

the banks are not 'deregulated.....not even close....
the supervision has been weakened by the clown by splitting boe
functions....
the loose money is a *direct* effect of the clown's 'policies'

house prices are further driven up as a hedge against the clown's
high tax regime....

you haven't a clue

Now, there are two ways of addressing this.

1. Return control of interest rates to the Government

you haven't a clue....it is already controlled by government....

neither is that (or ever was) done by 'interest rates'....it is
controlled by the printing of money

2. Wait for the market to correct itself, with borrowers defaulting as
rates rise, leading, eventually, to lower house prices.

not necessarily.....with the current inflation at over 10% it is very
likely that it is house prices that more clearly reflect reality

Which option would the opposition favour?

as it is clear that you are economically illiterate you have devised
a false choice based on extremely false 'understanding'...

Always interesting to hear from a foreigner, though I fear your
understanding of the UK housing market is necessarily somewhat
limited, living, as you do, in the arse-end of France and never having
owned property in the UK.

first para says nothing....let's hope this is not the best you can
manage

It is the case that, in the past, mortgages in the UK were much harder
to obtain; a deposit of at least 10% was needed, and loans were only
offered at multiples of around 3.5 times salary. Thus the number of
potential buyers was relatively small. Moreover, lenders had a fixed
amount of funds to offer, such that buyers often had to join a
mortgage waiting list.

poorly understood trivia...
let's hope that also is not the best you can manage

Now, loans are offered at 110% of the purchase price, so no deposit is
needed, and at up to 7 times salary, so the pool of buyers is much
bigger, which in turn pushes the price of houses higher. The panic to
'get on the housing ladder' at almost any cost has ratcheted demand
still higher.

oh dear...you have no useful grasp of the nature of inflation....
this gets boring...

maybe you'll impress j a s e y

There are two main options. One is to say 'let the market decide'.

but you don't understand the markets....
you are even confused by basics....

Eventually (and to some extent this has started already) lenders will
become more cautious; funds will begin to dry up, and many potential
buyers will drop out of the market and rent instead.

you really should stop reading those fossil media scribblers..

We may move back
to a situation where owner-occupiers are in the minority.

and twinkle feet may win the 3 o'clock....

The other, more interventionist approach is for the government to take
back control of interest rates

which they never relinquished despite the silly fictions they
propagate...and which you swallow undigested...

and to severely ration credit for
house purchase,

ah, you suggest a monetarist response....
how many repossessions are you prepared to tolerate?

perhaps also placing limits on the number of
properties an individual can own.

a political act.....
that should help them in the next election....or perhaps you want
elections cancelled

Since you are unable to express a preference, it might be best if you
were to leave this topic alone to avoid showing up your ignorance
again.

i'm still waiting for you to say sommat intelligent....
looks like i'm going to have to be very very patient eh.....

you're an economic illiterate....
no wonder you support 'new' labour and your latest buffoon pm.....

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