Home › Forums › Financial Markets/Economics › Now things are getting interesting:Bank of England Cuts Interest Rates
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34f3f3f.
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AuthorPosts
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December 6, 2007 at 5:49 AM #11104
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December 6, 2007 at 5:53 AM #110069
Coronita
ParticipantSlightly unrelated, I went inverted on oil with DUG. I'm wondering if now would be a good time to go invert on gold. I could be wrong, oh well if if I am.
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December 6, 2007 at 6:57 AM #110093
kewp
ParticipantUh, careful there.
We are basically exporting our inflation and other countries are being forced to run their printing presses to catch up.
The likely implication of this, in my opinion at least, is that other countries are going to finally decouple from our economy and our dollar; which is going to devalue further.
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December 6, 2007 at 8:45 AM #110184
HereWeGo
ParticipantWhat’s the best way to short gold, FLU?
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December 6, 2007 at 11:34 AM #110448
Jim Jones
ParticipantI was living in the UK for a couple years between 2000 and 2003 and watched housing explode there nationwide. That show Flip Your House first started as a program called Property Ladder on the BBC and was an export to the US after they saw the market doing the same things here. About 2 years ago I was reading about 40 and 50 year fixed rate loans being offered there and first time homeowners using them to get on the no pun intended “Property Ladder”. The sad part about all of this is I watch intelligent people take these loans which are not much different then renting when you look at the cost to borrow from the bank. The suffer from the same “Pride of Ownership” issues we have here.
I know this website has been posted up here before but some of you may want to take a peek. Its like Pigginiton’s with a British accent, but its scary how much it reads the same. When you look at the housing prices consider that middle class wages(the American definition of) in the UK are 2/3’s to 1/2 of what they are here and you will see that they are in a tight spot also. The UK has also been suffering from a very large increase in Council Tax (Property Tax) increases over the last 6 years. As property values rose so did the tax bills for many residents and their system is based on a series of Bands which determine your annual payment, once your get above a certain threshold the bills can become staggering.
http://www.housepricecrash.co.uk
On a side note I find it to be very troubling how none of the US banks have been pressured by the Bank of England into writing down their losses like HSBC, Barklays and Northern Rock (UK version of Country Wide without the cheerleader CEO) did after they were bailed out. It seems like the government there is trying to head off a problem the smart way by not putting “lipstick on the pig” and trying to sell it to the public. If the banks here down start writing down their losses isn’t that going to make problems worse? Instead of working on a rate freeze should we have all the major places fully disclose their finiancial positions? I would like to hear some comments on this so please chime in. The websites below reference the above discussion.
http://www.guardian.co.uk/business/2007/nov/12/economics.banking
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December 6, 2007 at 1:58 PM #110593
34f3f3f
ParticipantJim, your post reflects my sentiments exactly. There seems a lot of talk about the effect of mortgage securities on global markets, but little on what is happening locally. It is likely that the UK has its own subprime crisis. Not only are wages lower than the US, but houses in say London and the south are very expensive. There is no doubt that borrowing must have been lax. Apparently, Spain is a time bomb waiting to explode. House prices in both Italy and France have seen unprecedented growth. Although lending regulations will vary in tightness from country to country, I would find it hard to believe that low interest rates haven’t led to the flurry of lending we have seen here.
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December 6, 2007 at 1:58 PM #110712
34f3f3f
ParticipantJim, your post reflects my sentiments exactly. There seems a lot of talk about the effect of mortgage securities on global markets, but little on what is happening locally. It is likely that the UK has its own subprime crisis. Not only are wages lower than the US, but houses in say London and the south are very expensive. There is no doubt that borrowing must have been lax. Apparently, Spain is a time bomb waiting to explode. House prices in both Italy and France have seen unprecedented growth. Although lending regulations will vary in tightness from country to country, I would find it hard to believe that low interest rates haven’t led to the flurry of lending we have seen here.
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December 6, 2007 at 1:58 PM #110742
34f3f3f
ParticipantJim, your post reflects my sentiments exactly. There seems a lot of talk about the effect of mortgage securities on global markets, but little on what is happening locally. It is likely that the UK has its own subprime crisis. Not only are wages lower than the US, but houses in say London and the south are very expensive. There is no doubt that borrowing must have been lax. Apparently, Spain is a time bomb waiting to explode. House prices in both Italy and France have seen unprecedented growth. Although lending regulations will vary in tightness from country to country, I would find it hard to believe that low interest rates haven’t led to the flurry of lending we have seen here.
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December 6, 2007 at 1:58 PM #110755
34f3f3f
ParticipantJim, your post reflects my sentiments exactly. There seems a lot of talk about the effect of mortgage securities on global markets, but little on what is happening locally. It is likely that the UK has its own subprime crisis. Not only are wages lower than the US, but houses in say London and the south are very expensive. There is no doubt that borrowing must have been lax. Apparently, Spain is a time bomb waiting to explode. House prices in both Italy and France have seen unprecedented growth. Although lending regulations will vary in tightness from country to country, I would find it hard to believe that low interest rates haven’t led to the flurry of lending we have seen here.
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December 6, 2007 at 1:58 PM #110759
34f3f3f
ParticipantJim, your post reflects my sentiments exactly. There seems a lot of talk about the effect of mortgage securities on global markets, but little on what is happening locally. It is likely that the UK has its own subprime crisis. Not only are wages lower than the US, but houses in say London and the south are very expensive. There is no doubt that borrowing must have been lax. Apparently, Spain is a time bomb waiting to explode. House prices in both Italy and France have seen unprecedented growth. Although lending regulations will vary in tightness from country to country, I would find it hard to believe that low interest rates haven’t led to the flurry of lending we have seen here.
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December 6, 2007 at 11:34 AM #110566
Jim Jones
ParticipantI was living in the UK for a couple years between 2000 and 2003 and watched housing explode there nationwide. That show Flip Your House first started as a program called Property Ladder on the BBC and was an export to the US after they saw the market doing the same things here. About 2 years ago I was reading about 40 and 50 year fixed rate loans being offered there and first time homeowners using them to get on the no pun intended “Property Ladder”. The sad part about all of this is I watch intelligent people take these loans which are not much different then renting when you look at the cost to borrow from the bank. The suffer from the same “Pride of Ownership” issues we have here.
I know this website has been posted up here before but some of you may want to take a peek. Its like Pigginiton’s with a British accent, but its scary how much it reads the same. When you look at the housing prices consider that middle class wages(the American definition of) in the UK are 2/3’s to 1/2 of what they are here and you will see that they are in a tight spot also. The UK has also been suffering from a very large increase in Council Tax (Property Tax) increases over the last 6 years. As property values rose so did the tax bills for many residents and their system is based on a series of Bands which determine your annual payment, once your get above a certain threshold the bills can become staggering.
http://www.housepricecrash.co.uk
On a side note I find it to be very troubling how none of the US banks have been pressured by the Bank of England into writing down their losses like HSBC, Barklays and Northern Rock (UK version of Country Wide without the cheerleader CEO) did after they were bailed out. It seems like the government there is trying to head off a problem the smart way by not putting “lipstick on the pig” and trying to sell it to the public. If the banks here down start writing down their losses isn’t that going to make problems worse? Instead of working on a rate freeze should we have all the major places fully disclose their finiancial positions? I would like to hear some comments on this so please chime in. The websites below reference the above discussion.
http://www.guardian.co.uk/business/2007/nov/12/economics.banking
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December 6, 2007 at 11:34 AM #110596
Jim Jones
ParticipantI was living in the UK for a couple years between 2000 and 2003 and watched housing explode there nationwide. That show Flip Your House first started as a program called Property Ladder on the BBC and was an export to the US after they saw the market doing the same things here. About 2 years ago I was reading about 40 and 50 year fixed rate loans being offered there and first time homeowners using them to get on the no pun intended “Property Ladder”. The sad part about all of this is I watch intelligent people take these loans which are not much different then renting when you look at the cost to borrow from the bank. The suffer from the same “Pride of Ownership” issues we have here.
I know this website has been posted up here before but some of you may want to take a peek. Its like Pigginiton’s with a British accent, but its scary how much it reads the same. When you look at the housing prices consider that middle class wages(the American definition of) in the UK are 2/3’s to 1/2 of what they are here and you will see that they are in a tight spot also. The UK has also been suffering from a very large increase in Council Tax (Property Tax) increases over the last 6 years. As property values rose so did the tax bills for many residents and their system is based on a series of Bands which determine your annual payment, once your get above a certain threshold the bills can become staggering.
http://www.housepricecrash.co.uk
On a side note I find it to be very troubling how none of the US banks have been pressured by the Bank of England into writing down their losses like HSBC, Barklays and Northern Rock (UK version of Country Wide without the cheerleader CEO) did after they were bailed out. It seems like the government there is trying to head off a problem the smart way by not putting “lipstick on the pig” and trying to sell it to the public. If the banks here down start writing down their losses isn’t that going to make problems worse? Instead of working on a rate freeze should we have all the major places fully disclose their finiancial positions? I would like to hear some comments on this so please chime in. The websites below reference the above discussion.
http://www.guardian.co.uk/business/2007/nov/12/economics.banking
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December 6, 2007 at 11:34 AM #110612
Jim Jones
ParticipantI was living in the UK for a couple years between 2000 and 2003 and watched housing explode there nationwide. That show Flip Your House first started as a program called Property Ladder on the BBC and was an export to the US after they saw the market doing the same things here. About 2 years ago I was reading about 40 and 50 year fixed rate loans being offered there and first time homeowners using them to get on the no pun intended “Property Ladder”. The sad part about all of this is I watch intelligent people take these loans which are not much different then renting when you look at the cost to borrow from the bank. The suffer from the same “Pride of Ownership” issues we have here.
I know this website has been posted up here before but some of you may want to take a peek. Its like Pigginiton’s with a British accent, but its scary how much it reads the same. When you look at the housing prices consider that middle class wages(the American definition of) in the UK are 2/3’s to 1/2 of what they are here and you will see that they are in a tight spot also. The UK has also been suffering from a very large increase in Council Tax (Property Tax) increases over the last 6 years. As property values rose so did the tax bills for many residents and their system is based on a series of Bands which determine your annual payment, once your get above a certain threshold the bills can become staggering.
http://www.housepricecrash.co.uk
On a side note I find it to be very troubling how none of the US banks have been pressured by the Bank of England into writing down their losses like HSBC, Barklays and Northern Rock (UK version of Country Wide without the cheerleader CEO) did after they were bailed out. It seems like the government there is trying to head off a problem the smart way by not putting “lipstick on the pig” and trying to sell it to the public. If the banks here down start writing down their losses isn’t that going to make problems worse? Instead of working on a rate freeze should we have all the major places fully disclose their finiancial positions? I would like to hear some comments on this so please chime in. The websites below reference the above discussion.
http://www.guardian.co.uk/business/2007/nov/12/economics.banking
-
December 6, 2007 at 11:34 AM #110614
Jim Jones
ParticipantI was living in the UK for a couple years between 2000 and 2003 and watched housing explode there nationwide. That show Flip Your House first started as a program called Property Ladder on the BBC and was an export to the US after they saw the market doing the same things here. About 2 years ago I was reading about 40 and 50 year fixed rate loans being offered there and first time homeowners using them to get on the no pun intended “Property Ladder”. The sad part about all of this is I watch intelligent people take these loans which are not much different then renting when you look at the cost to borrow from the bank. The suffer from the same “Pride of Ownership” issues we have here.
I know this website has been posted up here before but some of you may want to take a peek. Its like Pigginiton’s with a British accent, but its scary how much it reads the same. When you look at the housing prices consider that middle class wages(the American definition of) in the UK are 2/3’s to 1/2 of what they are here and you will see that they are in a tight spot also. The UK has also been suffering from a very large increase in Council Tax (Property Tax) increases over the last 6 years. As property values rose so did the tax bills for many residents and their system is based on a series of Bands which determine your annual payment, once your get above a certain threshold the bills can become staggering.
http://www.housepricecrash.co.uk
On a side note I find it to be very troubling how none of the US banks have been pressured by the Bank of England into writing down their losses like HSBC, Barklays and Northern Rock (UK version of Country Wide without the cheerleader CEO) did after they were bailed out. It seems like the government there is trying to head off a problem the smart way by not putting “lipstick on the pig” and trying to sell it to the public. If the banks here down start writing down their losses isn’t that going to make problems worse? Instead of working on a rate freeze should we have all the major places fully disclose their finiancial positions? I would like to hear some comments on this so please chime in. The websites below reference the above discussion.
http://www.guardian.co.uk/business/2007/nov/12/economics.banking
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December 6, 2007 at 8:45 AM #110300
HereWeGo
ParticipantWhat’s the best way to short gold, FLU?
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December 6, 2007 at 8:45 AM #110331
HereWeGo
ParticipantWhat’s the best way to short gold, FLU?
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December 6, 2007 at 8:45 AM #110347
HereWeGo
ParticipantWhat’s the best way to short gold, FLU?
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December 6, 2007 at 8:45 AM #110351
HereWeGo
ParticipantWhat’s the best way to short gold, FLU?
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December 6, 2007 at 6:57 AM #110211
kewp
ParticipantUh, careful there.
We are basically exporting our inflation and other countries are being forced to run their printing presses to catch up.
The likely implication of this, in my opinion at least, is that other countries are going to finally decouple from our economy and our dollar; which is going to devalue further.
-
December 6, 2007 at 6:57 AM #110239
kewp
ParticipantUh, careful there.
We are basically exporting our inflation and other countries are being forced to run their printing presses to catch up.
The likely implication of this, in my opinion at least, is that other countries are going to finally decouple from our economy and our dollar; which is going to devalue further.
-
December 6, 2007 at 6:57 AM #110257
kewp
ParticipantUh, careful there.
We are basically exporting our inflation and other countries are being forced to run their printing presses to catch up.
The likely implication of this, in my opinion at least, is that other countries are going to finally decouple from our economy and our dollar; which is going to devalue further.
-
December 6, 2007 at 6:57 AM #110260
kewp
ParticipantUh, careful there.
We are basically exporting our inflation and other countries are being forced to run their printing presses to catch up.
The likely implication of this, in my opinion at least, is that other countries are going to finally decouple from our economy and our dollar; which is going to devalue further.
-
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December 6, 2007 at 5:53 AM #110187
Coronita
ParticipantSlightly unrelated, I went inverted on oil with DUG. I'm wondering if now would be a good time to go invert on gold. I could be wrong, oh well if if I am.
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December 6, 2007 at 5:53 AM #110214
Coronita
ParticipantSlightly unrelated, I went inverted on oil with DUG. I'm wondering if now would be a good time to go invert on gold. I could be wrong, oh well if if I am.
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December 6, 2007 at 5:53 AM #110232
Coronita
ParticipantSlightly unrelated, I went inverted on oil with DUG. I'm wondering if now would be a good time to go invert on gold. I could be wrong, oh well if if I am.
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December 6, 2007 at 5:53 AM #110235
Coronita
ParticipantSlightly unrelated, I went inverted on oil with DUG. I'm wondering if now would be a good time to go invert on gold. I could be wrong, oh well if if I am.
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