Inflation jumpsto 3.7% - what now?
18 January 2011, 02:00 PM
#31
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I paid £122500 for my Flat in 2006. Valuers reckoned it was worth £130-£135K in June 2008. Had it valued again in June 2010 and guess what, £125k.
I part exchanged it in the end for a new build but they have just sold it for £120k.
Those figures, do not tell me that there has been a massive crash, regardless of what the news says.
The banks that went bust and needed bailing out were those with no capital and therefore, no room to move when the sticky stuff hit the fan, end of. Shame they had enough dosh to pay all those bonus's eh!
Yes there has been a massive financial crash, but from where I am sitting, nothing has really changed. I still have the same job and am being paid 4% more than in 2008, I still have a car and have bought a new house.
I part exchanged it in the end for a new build but they have just sold it for £120k.
Those figures, do not tell me that there has been a massive crash, regardless of what the news says.
The banks that went bust and needed bailing out were those with no capital and therefore, no room to move when the sticky stuff hit the fan, end of. Shame they had enough dosh to pay all those bonus's eh!
Yes there has been a massive financial crash, but from where I am sitting, nothing has really changed. I still have the same job and am being paid 4% more than in 2008, I still have a car and have bought a new house.
Well take a look around and see the numebrs of empty shops, repos, unemployed etc. etc.
As for house prices they are still artificially high becuase people won't let go of their over inflated valuations and that is why the market is for the most part stagnant.
18 January 2011, 02:04 PM
#32
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What, a near collapse of the UK and US financial markets requiring a taxpayer bail out, financial indexes nearly halved across the world, tens of thousands of homes repossessed, soaring unemployment, the near collapse of the Eurozone .... yeah ... just an adjustment 
Funny how when Brown was in power it was the worst recession since the 1930s depression and now it is just an 'adjustment'
Funny how when Brown was in power it was the worst recession since the 1930s depression and now it is just an 'adjustment'
The last 2 years, they've fallen a few %. Hardly a crash.
18 January 2011, 02:27 PM
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dl
18 January 2011, 02:50 PM
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Ah I see. You were basing the 'adjustment' comment on your 'I'm alright Jack' point of view.
Well take a look around and see the numebrs of empty shops, repos, unemployed etc. etc.
As for house prices they are still artificially high becuase people won't let go of their over inflated valuations and that is why the market is for the most part stagnant.
Well take a look around and see the numebrs of empty shops, repos, unemployed etc. etc.
As for house prices they are still artificially high becuase people won't let go of their over inflated valuations and that is why the market is for the most part stagnant.
The news channels are 50% responsible for what happened with all the scare mongering that they advercate.
I live by what I see around me and to a very, very small extent, what I see on the news.
18 January 2011, 02:58 PM
#39
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
18 January 2011, 03:25 PM
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Hmmmmmm, come up to Sunny Scunny if you want to see the true effects of this recession.
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
The recession didn't set them on the course to failure, it just sped things up a little.
I hate going to any highstreets these days. They are all over priced compared to what you can get online.
18 January 2011, 04:19 PM
#42
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Hmmmmmm, come up to Sunny Scunny if you want to see the true effects of this recession.
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
The problem we have is that we will never see any of the things this country truly needs to save itself.
The FSA have made a rum attempt at "preventing the failings that led to the 2008 crash" - Banks have never been so law unto themselves as they are right now. Almost every day we have clients complaining about how their bank is hassling them because they have more than 50p in their account. We even had one bank sending flowers to a client who had inherited a large amount of cash - bank hadn't looked at them twice in 15 years then all of a sudden wants to be their best friend. Banks stopping people putting in and taking out large sums without bully boy tactics being used. Products sold by kids with little or no financial qualifications.
The behaviour is appaling and the FSA will completely miss the target.
The Mortgage Market Review - limit the income multiples, limit the lending % to 70%, actually make sure the client can repay the mortgage if it rates it 5% - actually make sure the client understands that 3.5% above base means 8.5% if rates are 5% - you'd be suprised how many people don't really pay attention to this bit in particular.
None of the above will happen. There is already arguments that the above will "limit innovation" which really means "package up some sh1tty deal over 5 years and give them a speedboat to go with their new high-rise flat at £500,000" and "limit competition" which largely means the same thing.
Not to mention the Daily Fail brigade that will be on the brandy and 24 hours suicide watch if the house drops in value by £1. Houses need to drop 30% at least to bring in line with the real world - and yes I am a home owner.
18 January 2011, 04:48 PM
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HBOS keep trying to get us to switch our current account to them when we contact them about them messing up the security on our savings account. They want us to do that for a bribe of £5pcm with 0% paid on credit balances PMSL. I cannot imagine the carnage from the direct debits getting messed up.
18 January 2011, 05:04 PM
#44
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Ditched them last year. We had a driveway which cost £3K. I increased my OD to pay for it on the basis that we wanted it done now and would pay off in due course. I went over by a couple of quid and they charged me once for going over and once for "honouring a cheque" I'd written or some such rubbish. They charges were close to £100.
I complained and asked for it to be put back. The manager saw how big our OD was and thought we were stuffed and she basically told me to bugger off - you could see the smug look on her face.
Needless to say, the OD was paid within a few months as intended and I switched. Took great pleasure in handing over the account closure forms. 16 years meant nothing.
First Direct has been great so far.
I complained and asked for it to be put back. The manager saw how big our OD was and thought we were stuffed and she basically told me to bugger off - you could see the smug look on her face.
Needless to say, the OD was paid within a few months as intended and I switched. Took great pleasure in handing over the account closure forms. 16 years meant nothing.
First Direct has been great so far.
18 January 2011, 05:49 PM
#45
I think the housing situation is going to come home to roost as it has done in Ireland in the not too distant future. Before Christmas I was working for one of the big house builders and the sites we were starting on phase 3 builds when only 3 or 4 houses from phase 1 and 2 had sold. Some of the estates are like ghost towns.
Or maybe we are building these empty houses for our Chinese overlords when they call in the debt.
Or maybe we are building these empty houses for our Chinese overlords when they call in the debt.
18 January 2011, 05:51 PM
#46
Hmmmmmm, come up to Sunny Scunny if you want to see the true effects of this recession.
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
Not trying to make this sound like my town is more s**t*y than your town but a bit further south our town centres have been like this for the past 6+ years!
Its been a continuing prolonged downward sprial in town centres. Recent events are just a nail in the coffin. A lot of the smaller businesses had no foundational underpinning to support it or had far to many overheads due to greedy councils and landlords, topped off by money lenders calling in early on unpaid loans and refusing new give out new ones.).
We have no big industry round here anymore. All our glassworks are long dead; taken over, shut down and production moved abroad. many component suppliers to the motor industry has largely gone abroad or relocted to greenfield sites. Recently a casting firm wound up due to excessive and untenable demands placed by the local council in response to residents complaining. The area I live was rife with drop forgers, now there is only one left. We used to make chains, Eliza Tinsley was prime example; For 150years it made chain. Its no longer British; Ownership is Indian, and all they do just buy in someone else's chain from overseas, brand it as their own then stick it on the shelf in B&Q.
What of all these workers? Well they lost the jobs and had to seek work esewhere. Government pushed the good ones into the small trades and self employed sector. Fine if you can run a business and have capital to withstand a downturn. Life-wrecking when it goes wrong. The amount of people I know who after losing their job in a big company (mainly due to it shifting production overseas) and starting up on their own only for it all to end in tears is harrowing.
A fellow on here quoted chapter and verse Adam Smith's "Wealth of Nations". The idea of moving stuff overseas to allows us to do something more productive. From a top level view that seems fine, but it ignorantly assumes that the labour "freed up" is capeable of doing anything else sucessfully and has the means to sustain it.
18 January 2011, 06:12 PM
#47
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Wjy are you making this all about house prices? Is that your sole criteria for a recession.
I have no job or chance of getting one and my car has been repo'd and my money on deposit is worth f**k all and the wife has lost her job and kids have no prospects but it's OK as I 'think' my house is still worth £400K
I have no job or chance of getting one and my car has been repo'd and my money on deposit is worth f**k all and the wife has lost her job and kids have no prospects but it's OK as I 'think' my house is still worth £400K
18 January 2011, 06:13 PM
#48
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Hmmmmmm, come up to Sunny Scunny if you want to see the true effects of this recession.
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
Every second shop/business boarded up, charity shops, shops like Bright House and TJHughes and £1 shops make up the majority of our commerce, the unemployment rate continues to rise alarmingly.........
This place has some deluded posters, but this guy is taking the biscuit
18 January 2011, 06:46 PM
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19 January 2011, 11:51 AM
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2.5 million unemployed nowand set to rise to 2.75 by July.
2.1% wage growth vs 3.7% inflation and inflation will top 4% in April.
Grim whether you have a job or not
2.1% wage growth vs 3.7% inflation and inflation will top 4% in April.
Grim whether you have a job or not
19 January 2011, 12:05 PM
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Back in the early/mid 80's where I use to live, the average wage was £15-17k, house prices for a 3 bed semi detached were circa £40k, more than affordable for one person to buy.
25 years on and the average wage in that same area is £22-25k, same semi detached house is £140-160k, not affordable by the same person anymore
If the house price would have gone up similar to the wage packet then that house would be worth circa 60-65k now, one person could afford it without any difficulty, unfortunately people think that houses mean they are rich, not true as F1 Fan has pointed out, if your house is "worth" 160k then you can sell it and buy a cheaper one, or not, as your only buying what your property will let you, so less borrowing, less people buying, more people staying with their parents for much longer etc, house market goes stagnent but prices stay artificially high, unless those prices drop to the same as the wages then your not going to have a good property ladder
Tony
19 January 2011, 12:07 PM
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Wjy are you making this all about house prices? Is that your sole criteria for a recession.
I have no job or chance of getting one and my car has been repo'd and my money on deposit is worth f**k all and the wife has lost her job and kids have no prospects but it's OK as I 'think' my house is still worth £400K
I have no job or chance of getting one and my car has been repo'd and my money on deposit is worth f**k all and the wife has lost her job and kids have no prospects but it's OK as I 'think' my house is still worth £400K
I was referring to Dunx's post (22) with regards to house prices. There has not been a property price crash in this country, at least yet anyway.
19 January 2011, 12:21 PM
#53
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The point about the house prices is that they are seriously (if not stupidly) high.
Back in the early/mid 80's where I use to live, the average wage was £15-17k, house prices for a 3 bed semi detached were circa £40k, more than affordable for one person to buy.
25 years on and the average wage in that same area is £22-25k, same semi detached house is £140-160k, not affordable by the same person anymore
If the house price would have gone up similar to the wage packet then that house would be worth circa 60-65k now, one person could afford it without any difficulty, unfortunately people think that houses mean they are rich, not true as F1 Fan has pointed out, if your house is "worth" 160k then you can sell it and buy a cheaper one, or not, as your only buying what your property will let you, so less borrowing, less people buying, more people staying with their parents for much longer etc, house market goes stagnent but prices stay artificially high, unless those prices drop to the same as the wages then your not going to have a good property ladder
Tony
Back in the early/mid 80's where I use to live, the average wage was £15-17k, house prices for a 3 bed semi detached were circa £40k, more than affordable for one person to buy.
25 years on and the average wage in that same area is £22-25k, same semi detached house is £140-160k, not affordable by the same person anymore
If the house price would have gone up similar to the wage packet then that house would be worth circa 60-65k now, one person could afford it without any difficulty, unfortunately people think that houses mean they are rich, not true as F1 Fan has pointed out, if your house is "worth" 160k then you can sell it and buy a cheaper one, or not, as your only buying what your property will let you, so less borrowing, less people buying, more people staying with their parents for much longer etc, house market goes stagnent but prices stay artificially high, unless those prices drop to the same as the wages then your not going to have a good property ladder
Tony
You have to have the crash, you have to go through the pain of not being able to move because of negative equity. Pretty much an entire generation will have to take the pain for the sake of the rest of next generation.
Limit income multiples to 3X income or 2X joint and NO MORE. AND minimum 25% deposit.
19 January 2011, 12:28 PM
#54
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You said the worst recession since the 1930s depression was an 'adjustment' based on how it has affected you. You seem to base your hypothesis that everything is not that bad on the fact that your house price hasn't crashed while all round the country others are struggling to make ends meet. Does that kind of explain it for you?
19 January 2011, 12:44 PM
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You said the worst recession since the 1930s depression was an 'adjustment' based on how it has affected you. You seem to base your hypothesis that everything is not that bad on the fact that your house price hasn't crashed while all round the country others are struggling to make ends meet. Does that kind of explain it for you?
I never said things were easy did I? Just that in my experience, nothing has really changed with my living standards. That's not my fault is it? Why persecute me for that? If house prices did drop by 30%, I would care as we bought our hosue to live in for many years. We could probably cope with 10% interest rates but it would be a struggle, as I am sure it be with everyone else. What amazes me is what did they expect when the torries got in? I didn't vote for them and anyone who did obviously doesn't study political histroy.
Torries in - prices go up.My car is only a crappy 2001 nissan almera but it does the job. I couldn't afford to run two cars but hey, that's a luxury that I don't need anyway, although it would be nice to have another scoob.
We have a baby on the way that is due in May and I pay care fees for my old man who is in a nursing home. So, all things being equal, I have just as much right to comment on how the 'credit crunch' has effected me, as well as people that I know.
A friend of mine works for BAE systems and they have just got through a round of redundancies, but luckily he kept his job. 20% cuts though apparently. But, I know he works bloody hard, is always working late so may be he kept his job because he was still making the company money.
Everyone seems to think that somebody owes them something.
Get real, nobody is going to bail you out if your life starts going wrong. **** happens. Yes, it's not fair, yes, may be the government could do things differently and yes, the banks should act more responsibly. But, nobody forces anyone to borrow anything. It's greed, end of.
What pisses me off is the 'We're all doomed!' mentality that many feel the need add to, especially on here. Life goes on. Same ****, different day.
Last edited by Gear Head; 19 January 2011 at 12:53 PM.
19 January 2011, 02:51 PM
#56
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They need to raise the interest rates, it's only going to rise again next month when the VAT rise is taken into account.
I have a fuel receipt from July 2009 where a litre of petrol was 98.9ppl, 18mths later, we are at 127.9ppl.
Real inflation is a lot higher than 3.7%. A mars bar costs 72p nowadays, the country is going bonkers
I have a fuel receipt from July 2009 where a litre of petrol was 98.9ppl, 18mths later, we are at 127.9ppl.
Real inflation is a lot higher than 3.7%. A mars bar costs 72p nowadays, the country is going bonkers
19 January 2011, 02:53 PM
#57
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The buck stops squarely at the Governments door .... they had a choice whether to squeeze now or let the recovery take hold (as Labour wanted to do) - they have chosen to squeeze.
This is a political choice as the bad news is out of the way in the first 12 months of the LibCon Pact, they are betting our futures on them getting re-elected!!
They are Economically inept ... Brown and Darling were experienced in the ways of the economic world and did, indeed, save us from total collapse.
Interest Rates should increase 0.5% - then another 0.5% in March .... the markets have increased rates in anticipation anyway ...... the BoE should send a message to rein in any thoughts of people to borrow to buy.
Trouble with higher interest rates is that the value of the pound increases making exports (which we are doing rather well at at the moment) would stall.
But, all in all I would start hiking them up ..... as a saver, I am getting next to nothing in interest anymore
This is a political choice as the bad news is out of the way in the first 12 months of the LibCon Pact, they are betting our futures on them getting re-elected!!
They are Economically inept ... Brown and Darling were experienced in the ways of the economic world and did, indeed, save us from total collapse.
Interest Rates should increase 0.5% - then another 0.5% in March .... the markets have increased rates in anticipation anyway ...... the BoE should send a message to rein in any thoughts of people to borrow to buy.
Trouble with higher interest rates is that the value of the pound increases making exports (which we are doing rather well at at the moment) would stall.
But, all in all I would start hiking them up ..... as a saver, I am getting next to nothing in interest anymore
Les
20 January 2011, 01:39 PM
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