There will be small fall backs in August, there always is.

Autumn will see a levelling off.

Winter will be very quiet and next spring there will be an Election ... until that is decided there will be no movement.

Then, the new Government will herald an increase in Interest Rates .... maybe +2% within 4 months - that's FOUR times higher than we are now. This may well signal the final drop in house prices until they are where they should be - 20% OFF where they are now.

 

You accuse me of having a dig at you, but with comments like that, what do you expect?

 

Government is going to pump another £50bn into the economy.

Car sales UP.

House prices UP.

Shares UP.

With all the green shoots, the £50bn injection is going to bring the roses out!

Like I said months ago - there was nothing to worry about and whatever it was is all over without touching most people!

I suspect that, by the time of the election, we will be enjoying such a great quality of life that we won't want to risk giving the Eton Boyz a 'chance'. Much better the devil you know!

 

I'm extremely worried by this extra £50bn. Not only is it a reflection of the Government conceding that the recession is FAR deeper than they envisaged, but who the hell is going to pay for all this in the long run?

 

Tel,

Whats the problem? according to Pete everything will be fine

 

The problem is the chasm between reality and what Pete says.

 

An extra £50 billion out of thin air This current establishment seem desperate to create the next bubble.

 

I can't quite work out if Pete is continaully trolling, or if he is actually starting to believe his own spin

 

Flash is just making sure that when we go down,its for an amount worth going out for..

Classic debt monger attitude...

There is one on every street,

Car from Carcraft
Next store card maxed
Credit cards maxed
Debit cards maxed
3 bank accounts all in the red
Personal account at cash converters.

We laugh at them when the are neighbours for being so stoopid,but its hard to swallow when the wobbly jawed simpleton is at it..

 

Its all geared up for the next election, plain and simple. Flash wants everybody to feel as though things are better, to increase his chances of re election.

After the election, things will really hit the fan. IRs will go up, causing HP's to fall. Unemployment will rise, as will taxes for those working.

Sterling will dive as it becomes apparent just how bad our trading deficit with the rest of the world is, as well as our sovereign debt.

This bull run will last some time though, liquidity and low IRs is forcing money into equities and perhaps property.

We need the Eton boys in now, to sort this mess out!

 

Erm, the bank of England not the government are pumping the money in. The bank of England is independant from the government thanks to Gordon

And the reason they are pumping £50 billion and not the expected £25 billion is
Even the man who invented quantitative easing said this is a bad move.....

 

Printing money isn't borrowing money ...... note that the £ is very strong now, due to the fact that the world looks to the UK as a shining beacon of how to manage your way out of a slowdown.

Of course, one eye is on the election .... once we see the Tory Policies the reality will hit most people, if they are feeling well off they are less likely to favour the Eton Boyz.

 

I simply tell it as it is .... no spin, no trolling - just a wise old head stating the obvious.

 

"One eye on the election."

Good one Pete.

 

Cleverly picked up

 

Unfortunately the other one is like our country...

An empty bucket with no forward vision..

 

Pete your ignorance knows no bounds does it? In less than ten words, what do you think will happen to the exchange rate of the pound now, given the increase of quantitative easing by £50bn?

Ok we all like a pslewis "laugh" now and again, but for one brief moment, please try and stop being an idiot.

 

If the ecomony fails to recover as Darling predicted in his budget the UK budget deficit will be 100% of GDP by 2014 unless huge cuts to public services are made, coupled with tax rises.
Labour have already started paving the way for this with the defence review.

 

Well I have waited long enough, I will be looking at a selection of properties this coming week and hope to have a solid offer on something by this time next week.

Tenants moved into one of my flats today with full asking price rent, and the others have recently renewed for a full year, things are looking good here.

 

Pete, every £ printed devalues every other £ in circulation. It waters down our currency.

Our economy is being propped up by future payments we will all have pay in higher taxes simply in because joker Brown thinks he can be re-elected.

He's robbing us all of money we will all pay in more taxes, propping up a failed financial system and paying people not to sell houses just so he can stay in office.

This is all going to collapse at some point with the tax-payer, again, paying for it.

QE has never been tried here. It has failed so far; hence the extra £50 billion shunted in as a last resort. Japan tried QE in 1990 and house prices there are STILL falling there 19 years afterwards.

AND JAPAN PRODUCE EXPORTS AT LARGE PROFIT AND HAVE A MASSIVE ABILITY TO CONTINUE.

 

Just found Pete's latest profile pic on his twitbook account

 

The pound is stronger now than it has been - 9 words .... looks like the world (if not the wise on SN) recognises that the UK is out and on the UP!

Labour may even get re-elected at this rate! Even without my vote!

 

I do agree that the pound is strengthening and although we lost 1.5c due to the quantitive easing and it has moved back again in the last 24 hours that is due to the HM Gov and BoE manipulating the market to weaken the pound to maintain a positive cash flow into the UK, which makes some sense.

Although for me personally I like a strong pound against the dollar as it helps me make more money.

Back to the property, apparently I am not allowed to make my observations in my own thread...

I met with my mortgage adviser yesterday and asked her whether things were really quiet.

She said that she is worked off her feet. She said the branch she is attached to (HSBC) historically peaked at 15 mortgage appointments a week.

Last week she did 26 appointments almost all of which went to approval. And this was not an exceptional week, it has been like it for a couple of months.

She also said properties were now going at or over asking price with one guy first time buyer losing seven properties in a row by being outbid.

Even I am likely to get approved even though I am employed by my own company and have a high calculated multiple based on 'Inland Revenue income' although low LTV. The rate she could offer me was better than anything I have seen for a life time rate AND substantially better than my offset even allowing for my offset savings.

No contest.

And she was cute to boot

Trout

 

Well we actually know exactly what happened against the reference currency. The £ went down from $1.70 to $1.68.5 when the £50bn was released.

In personal terms it is a huge amount, in money market terms it is a pittance. Technically the actual devaluation would be a tiny fraction of the 1.5c lost, that was mostly due to sentiment.

The pound has lost more on market manipulation this week rather than QE.

 

£ is now at $1.66

 

And your point is? The market discounted QE by 1.5c.

Today HM Gov is sending out signals around the RPI announcement to indicate that the recovery is still some way off to dampen the pound. This alone brought the £ down another 1.5c.

Is it massively in our interest to have a low £ at the moment to get cash flow (not investment) to be positive for Corporate UK.

I could argue that actually the £ has risen from 1.43 only a couple of months ago and Quantitive Easing has barely dented that rise.

 

Sorry I was just indicating the £ has lost 5c so not just because of the QE.

The £ became weak virtually overnight when IR went from 4.5-0.5. IMO one of the reasons the £ will get weaker is that it is fairly certain the IR won't rise for a while.

My business exports to the US so personally the weaker the £ the better.

 

Fair enough

For me the stronger the pound the better my bonus as one of my results is published in $ not £!!

 

Surely you want a strong dollar not pound. One of my contracts pays in $ and 1.38 was sweet!