UK House prices: News & Views

[Kurtz]

If the government is bust and enough people lose their jobs, I wonder how long this practice will last.

 

As long as QE lasts. This is why the housing market hasn't crashed to its knees. The Pound was sacrificed instead.

[drbubb]

As long as QE lasts. This is why the housing market hasn't crashed to its knees. The Pound was sacrificed instead.

Brown's plan:

Everyone inflates thru QE at the same time - so no currency crashes.

 

But now some countries (mainly in Asia) are deviating from that plan - They want to stop inflation.

[Kurtz]

Brown's plan:

Everyone inflates thru QE at the same time - so no currency crashes.

 

But now some countries (mainly in Asia) are deviating from that plan - They want to stop inflation.

 

And ummmm . . . how's that going?

 

Not seen real inflation here yet, but then most stuff we live on is price controlled (includes rice, cooking gas, diesel, public transport) and domestically produced. It's coming though.

[drbubb]

And ummmm . . . how's that going?

 

Not seen real inflation here yet, but then most stuff we live on is price controlled (includes rice, cooking gas, diesel, public transport) and domestically produced. It's coming though.

We may be in the foothills of a mountainous inflationary spike.

Some countries are trying to prevent that now

[Kurtz]

We may be in the foothills of a mountainous inflationary spike.

Some countries are trying to prevent that now

 

Well I should say so yes.

 

They're 'trying' . . . how?

 

See, so long as the West prints and exports inflation and so long as the US Dollar remains the worlds reserve currency there isn't much they can do.

 

Government here is back to subsidizing the diesel again. See below . . .

 

Hike in diesel subsidy threatens oil fund

By The Nation, Agencies

 

Could run dry in 23 days after yet another move to keep Bt30 ceiling that costs Bt302m a day

 

Thailand has raised the diesel subsidy to Bt5 per litre amid worries that at the current rate the Oil Fund's reserves will be depleted in 23 days.

 

Once the Energy Policy Administration Committee's resolution takes effect today, the Oil Fund will need to spend Bt302 million a day to keep the diesel price below Bt30 per litre, up from Bt247 million earlier, or at a cost of Bt9 billion. Since the price-freeze policy started on December 17 until yesterday, the fund had spent Bt9 billion for the purpose.

 

The net reserves are consequently down to Bt7 billion and the amount will not last until the end of this month, said Energy Minister Wannarat Charnnukul. Two options are raised for discussion at the prime minister-chaired National Energy Policy Committee - a cut in the oil excise tax or lifting the diesel price ceiling.

 

"The government promised a budget allocation for the price freeze but now there is no clarity how the burden will be financed," Wannarat said. Earlier, there was a plan to use part of the petroleum royalty fee to subsidise the price of liquefied petroleum gas (LPG), so as to raise the Oil Fund's capacity to freeze the diesel price. According to the minister, that is possible only with an amendment that might take one to two years from now.

 

The Oil Fund now sits on cash of about Bt15 billion. Still, it is liable to finance the Bt1.2-billion programme to convert LPG-fuelled taxis to natural gas for vehicles. Monthly, it needs to subsidise the NGV price by Bt2 per kilogram, or Bt400 million, and to handle the differential of domestic and international prices of LPG of about Bt2.2 billion.

 

The committee yesterday decided to raise the subsidy by 50 satang per litre, as oil spikes continue due to political upheaval in Libya and Middle Eastern countries. Dubai crude was US$109 (Bt3,325) per barrel yesterday, while refined diesel in Singapore cost nearly $130 per barrel.

 

Pissawan Atchanapornkul, chairwoman of Shell Company of Thailand, urged the government to consider lifting the ceiling from Bt30 per litre.

 

"The rise would help retailers, as this would improve the marketing margin, which is now below Bt1 per litre, though the government agrees that the appropriate level is Bt1.70. The price freeze is good to help lower the cost of living, but amid changing external factors there should be a review," she said yesterday.

 

There is no sign that rises in the price of oil will stop soon. Technical analysis by Glen Ward, head of retail derivatives at London Capital Group Holdings, shows that Brent crude for April settlement, now at $116.20, may advance past $119 a barrel as prices continually surge above ranges and moving averages.

 

The nine-day, 14-day and 40-day moving averages "are all pointing north", Ward said.

 

This is despite US Treasury Secretary Timothy Geithner's speech on Thursday in which he said that the world could pump enough extra oil and has enough stashed in reserve to limit price shocks from sustained turmoil in the Middle East. International Monetary Fund spokeswoman Caroline Atkinson said at a news briefing on the same day that the IMF was worried about rising food prices, especially as they affect the poor and most vulnerable people. Indices by the United Nations' Food and Agriculture Organisation show that food prices in February rose the highest in 20 years. The FAO warned that oil prices could push food prices higher.

 

"We're extremely concerned about rising food prices … It's important that people who are most vulnerable should be protected rather than products subsidised," she said.

 

Beyond rising food prices, Atkinson pointed to building inflation in some rapidly growing emerging economies. Some emerging countries are "getting to the point of potential overheating, and therefore central banks have been quite appropriately beginning to tighten monetary policy", she said, citing Brazil's monetary tightening.

 

Thailand is also expected to raise the policy interest rate at next Wednesday's meeting.

[Icarus]

As long as QE lasts. This is why the housing market hasn't crashed to its knees. The Pound was sacrificed instead.

 

 

This is the worst of both worlds. Pensions, savings and fixed incomes are destroyed by inflation. And house prices will still need to fall so that people can reasonably afford to buy them.

 

[webmaster]

*** WELCOME to PAGE 100 ! ***

 

I used to wonder if any thread here would hit the century mark

[Kurtz]

This is the worst of both worlds. Pensions, savings and fixed incomes are destroyed by inflation. And house prices will still need to fall so that people can reasonably afford to buy them.

 

But of course it is. It's fundamental denial of reality which has inevitable and serious consequences. Government and the ponzi fiat money system spewed from it hasn't been fit for purpose in the UK for many decades and this is simply the culmination of all the ineptitude and corruption of an already crook system.

 

Remember that pile of ignorance hosted by Peter Snow and his boy, "What makes Britain rich?"

 

What makes Britain rich?

 

 

Just had this email in from an American friend, hilarious. Sort of related, had to post it somewhere . . .

 

 

Alan Simpson, Senator from Wyoming, co-chair of Obama's deficit Commission, calls senior citizens the greediest generation as he Compared "Social Security" to a milk cow with 310 million teats. August, 2010.

 

Here's a response in a letter from a unknown fellow in Montana ...

 

I Think he is a little ticked off ! He also tells it like it is !

 

 

"Hey Alan, let's get a few things straight...

 

1. As a career politician, you have been on the public dole for FIFTY YEARS.

 

2. I have been paying Social Security taxes for 48 YEARS (since I was 15 Years old. I am now 63).

 

3. My Social Security payments, and those of millions of other Americans, were safely tucked away in an interest bearing account for Decades until you political pukes decided to raid the account and give OUR money to a bunch of zero ambition losers in return for votes, thus Bankrupting the system and turning Social Security into a Ponzi scheme that would have made Bernie Madoff proud.

 

4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the Proverbial football away from millions of American seniors nearing retirement and moved the goalposts for full retirement from age 65 to Age 67. NOW, you and your shill commission is proposing to move the goalposts YET AGAIN.

 

5. I, and millions of other Americans, have been paying into Medicare From day one, and now you morons propose to change the rules of the game. Why? Because you idiots mismanaged other parts of the economy to Such an extent that you need to steal money from Medicare to pay the bills.

 

6. I, and millions of other Americans, have been paying income taxes our Entire lives, and now you propose to increase our taxes yet again. Why?

Because you incompetent bastards spent our money so profligately that You just kept on spending even after you ran out of money. Now, you come to the American taxpayers and say you need more to pay off YOUR debt.

 

~~~~~~~~~~~~~~~~~~

 

To add insult to injury, you label us "greedy" for calling "bullshit" on Your incompetence. Well, Captain Bullshit, I have a few questions for YOU.

 

1. How much money have you earned from the American taxpayers during your pathetic 50-year political career?

 

2. At what age did you retire from your pathetic political career, and How much are you receiving in annual retirement benefits from the American taxpayers?

 

3. How much do you pay for YOUR government provided health insurance?

 

4. What cuts in YOUR retirement and healthcare benefits are you Proposing in your disgusting deficit reduction proposal, or, as usual, Have you exempted yourself and your political cronies?

 

It is you, Captain Bullshit, and your political co-conspirators who are "greedy". It is you and they who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for What? Votes. That's right, sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You Know it, we know it, and you know that we know it.

 

And you can take that to the bank, you miserable son of a bitch."

[Delboy]

Does the UK government still pay peoples mortgages when they are out of work?

 

I seem to remember this a lot on HPC, the poor sods being rightfully mortified that they were not only paying landlords but their taxes were paying for other peoples mortgages.

 

If so, it appears buying a house via a mortgage is zero risk in the UK.

We both have jobs and one is a key worker so pretty solid. One persons wage maybe enough to cover mortgage and outgoings. Yes I would like to make the most of any drops and fully understand the whole inflated prices etc I got stung in the last crash so I have learned my lesson.

 

I think I will let fate decide by putting in a stupidly low (but actually realistic) price and see what happens.

[Kurtz]

We both have jobs and one is a key worker so pretty solid. One persons wage maybe enough to cover mortgage and outgoings. Yes I would like to make the most of any drops and fully understand the whole inflated prices etc I got stung in the last crash so I have learned my lesson.

 

I think I will let fate decide by putting in a stupidly low (but actually realistic) price and see what happens.

 

I think that's right, just keep finding suitable houses and put in offers of what it's worth to you . . . realistically.

[tallim]

Does the UK government still pay peoples mortgages when they are out of work?

 

I seem to remember this a lot on HPC, the poor sods being rightfully mortified that they were not only paying landlords but their taxes were paying for other peoples mortgages.

 

If so, it appears buying a house via a mortgage is zero risk in the UK.

 

Yes

 

http://www.direct.gov.uk/en/MoneyTaxAndBen...ncome/DG_180321

 

Support for Mortgage Interest, currently paid at 3.63% of the outstanding balance up to £200,000, interest paid is set by Bank of England monthly average mortgage interest rate, I can't find the actual published series they use. If actual interest charged to the recipient is less than 3.63% the difference can be used to pay down mortgage capital.

 

Pays out for up to 2 years if you're on Jobseeker's Allowance.

 

Pays out indefinitely if you're on Income Support, Income-Related Employment and Support Allowance or Pension Credit (limited to £100,000).

 

Description of Income Support and Pension Credit here;

 

http://www.direct.gov.uk/en/MoneyTaxAndBen...ome/DG_10018708

 

Description of Employment and Support Allowance here;

 

http://www.direct.gov.uk/en/DisabledPeople...t/esa/DG_171894

 

Potentially interesting snippet for repos/forced sales this year;

 

...A two year time limit to SMI for new customers getting income-based Jobseeker's Allowance was introduced from 5 January 2009.

 

This will start affecting some people from 5 January 2011. If you have received SMI for two years from 5 January 2009 or later, you will no longer receive help with your mortgage interest. This will apply if you have been getting SMI continually or through linked benefit claims...

[Kurtz]

Yes

 

http://www.direct.gov.uk/en/MoneyTaxAndBen...ncome/DG_180321

 

Support for Mortgage Interest, currently paid at 3.63% of the outstanding balance up to £200,000, interest paid is set by Bank of England monthly average mortgage interest rate, I can't find the actual published series they use. If actual interest charged to the recipient is less than 3.63% the difference can be used to pay down mortgage capital.

 

Pays out for up to 2 years if you're on Jobseeker's Allowance.

 

Pays out indefinitely if you're on Income Support, Income-Related Employment and Support Allowance or Pension Credit (limited to £100,000).

 

Description of Income Support and Pension Credit here;

 

http://www.direct.gov.uk/en/MoneyTaxAndBen...ome/DG_10018708

 

Description of Employment and Support Allowance here;

 

http://www.direct.gov.uk/en/DisabledPeople...t/esa/DG_171894

 

Potentially interesting snippet for repos/forced sales this year;

 

There you go. Now throw in the fruits of Merv's loom and that's why you haven't had a house price catastrophe, never mind a crash.

 

[drbubb]

It is you, Captain Bullshit, and your political co-conspirators who are "greedy". It is you and they who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for What? Votes. That's right, sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You Know it, we know it, and you know that we know it.

 

And you can take that to the bank, you miserable son of a bitch."

Someone should show him how much MORE he will get from the system than what he paid in.

 

The real losers will be the younger folk... many will get nothing

[drbubb]

Pays out indefinitely if you're on Income Support, Income-Related Employment and Support Allowance or Pension Credit (limited to £100,000).

 

Description of Income Support and Pension Credit here;

Wow.

I wonder how many arrange to "lose their jobs" in order to get these generous benefits

[Kurtz]

Someone should show him how much MORE he will get from the system than what he paid in.

 

The real losers will be the younger folk... many will get nothing

 

Will he though? I mean a lifetime of paying in. Not that many people make it past 70 if they work to 65.

[Kurtz]

Wow.

I wonder how many arrange to "lose their jobs" in order to get these generous benefits

 

This is it. Mortgages are effectively risk free in the UK. Go ahead and buy one, keep it under those welfare limits and claim as soon as you're made redundant or get a wonky knee or depression or something.

 

No wonder that place is so . . . skewed.

 

That said, I've seen plenty refused anything even though they were supposedly entitled.

[drbubb]

This is it. Mortgages are effectively risk free in the UK. Go ahead and buy one, keep it under those welfare limits and claim as soon as you're made redundant or get a wonky knee or depression or something.

 

No wonder that place is so . . . skewed.

Exactly.

But I think you have spelled the word wrong. There's an "R" in there someplace

[Kurtz]

Exactly.

But I think you have spelled the word wrong. There's an "R" in there someplace

 

Self-imposed out of respect swear filter prevents me from constructing a sentence purely formed from expletives to describe what is necessary to those who do not know what the word f$%ked means.

[BoldAsBrass]

But of course it is. It's fundamental denial of reality which has inevitable and serious consequences. Government and the ponzi fiat money system spewed from it hasn't been fit for purpose in the UK for many decades and this is simply the culmination of all the ineptitude and corruption of an already crook system.

 

Remember that pile of ignorance hosted by Peter Snow and his boy, "What makes Britain rich?"

 

What makes Britain rich?

 

 

Just had this email in from an American friend, hilarious. Sort of related, had to post it somewhere . . .

 

 

Alan Simpson, Senator from Wyoming, co-chair of Obama's deficit Commission, calls senior citizens the greediest generation as he Compared "Social Security" to a milk cow with 310 million teats. August, 2010.

 

Here's a response in a letter from a unknown fellow in Montana ...

 

I Think he is a little ticked off ! He also tells it like it is !

 

 

"Hey Alan, let's get a few things straight...

 

1. As a career politician, you have been on the public dole for FIFTY YEARS.

 

2. I have been paying Social Security taxes for 48 YEARS (since I was 15 Years old. I am now 63).

 

3. My Social Security payments, and those of millions of other Americans, were safely tucked away in an interest bearing account for Decades until you political pukes decided to raid the account and give OUR money to a bunch of zero ambition losers in return for votes, thus Bankrupting the system and turning Social Security into a Ponzi scheme that would have made Bernie Madoff proud.

 

4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the Proverbial football away from millions of American seniors nearing retirement and moved the goalposts for full retirement from age 65 to Age 67. NOW, you and your shill commission is proposing to move the goalposts YET AGAIN.

 

5. I, and millions of other Americans, have been paying into Medicare From day one, and now you morons propose to change the rules of the game. Why? Because you idiots mismanaged other parts of the economy to Such an extent that you need to steal money from Medicare to pay the bills.

 

6. I, and millions of other Americans, have been paying income taxes our Entire lives, and now you propose to increase our taxes yet again. Why?

Because you incompetent bastards spent our money so profligately that You just kept on spending even after you ran out of money. Now, you come to the American taxpayers and say you need more to pay off YOUR debt.

 

~~~~~~~~~~~~~~~~~~

 

To add insult to injury, you label us "greedy" for calling "bullshit" on Your incompetence. Well, Captain Bullshit, I have a few questions for YOU.

 

1. How much money have you earned from the American taxpayers during your pathetic 50-year political career?

 

2. At what age did you retire from your pathetic political career, and How much are you receiving in annual retirement benefits from the American taxpayers?

 

3. How much do you pay for YOUR government provided health insurance?

 

4. What cuts in YOUR retirement and healthcare benefits are you Proposing in your disgusting deficit reduction proposal, or, as usual, Have you exempted yourself and your political cronies?

 

It is you, Captain Bullshit, and your political co-conspirators who are "greedy". It is you and they who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for What? Votes. That's right, sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You Know it, we know it, and you know that we know it.

 

And you can take that to the bank, you miserable son of a bitch."

 

Ohhhh, truly beautiful. Wish I could express things so eloquently.

 

Do you have a link to that letter - I need to send it to a few people.

[neil324]

Interesting take on the benefits safety net. So why are repossessions not running at zero then?

[Pixel8r]

*** WELCOME to PAGE 100 ! ***

 

I used to wonder if any thread here would hit the century mark

Last time I looked the gold thread was on page 1300.

 

 

[tallim]

Interesting take on the benefits safety net. So why are repossessions not running at zero then?

 

That is a good question, the answers I could come up with are;

 

+ Landlords or second home owners don't receive SMI for places that are not their main residence

+ People receiving SMI with outstanding balances of more than £200,000 (£100,000 for pensioners)

+ People receiving SMI with mortgage rates higher than 3.63%

+ People who the benefit system has not given SMI to for whatever reason (Self-Employed?)

+ People choosing repossession for strategic reasons (I've no idea if there would be a valid reason to do this?)

[drbubb]

Last time I looked the gold thread was on page 1300.

Yes, a big success too.

But dont forget that several Gold threads have been combined into one.

 

If you combined all the DrB Diary threads, that would be a huge thread also

[drbubb]

Self-imposed out of respect swear filter prevents me from constructing a sentence purely formed from expletives to describe what is necessary to those who do not know what the word f$%ked means.

We understand each other !

[Kurtz]

Ohhhh, truly beautiful. Wish I could express things so eloquently.

 

Do you have a link to that letter - I need to send it to a few people.

 

It was an email from a New Yorker friend, just copy and paste.