Cost of Living Crisis

[parsforlife]

The desperation to support the housing bubble is mad.

[bennett]

4 hours ago, Bairnardo said:

Imagine that would be the shortest bankers meeting ever....

"People are going to start failing affordability checks for mortgages soon, what should we do?"

0.9 seconds passes.....

"So that's unanimous then we bin them and lend like f**k let's go to the pub"

Have a like for the laugh.

 

[Melanius Mullarkey]

I’m thinking of starting a bank up. I’m going to call it the Boreal Pebble.

 

[BigDoddyKane]

5 hours ago, Suspect Device said:

Mortgage affordability test to be axed by the Bank of England | This is Money

This is completely the wrong way to go when people are already overstretched. The only thing that helps people get affordable housing is more housing, not more credit.

And when the interest rates are heading up, it's completely irresponsible.

I was thinking the same when I saw that, how does this help?

[Left Back]

6 hours ago, Suspect Device said:

Mortgage affordability test to be axed by the Bank of England | This is Money

This is completely the wrong way to go when people are already overstretched. The only thing that helps people get affordable housing is more housing, not more credit.

And when the interest rates are heading up, it's completely irresponsible.

Despite what people might fantasise about more housing doesn’t actually exist so you can rule that out as a solution.

[Jacksgranda]

Step daughter Nr 3 rang last night, she wanted to talk to her mother but she was stuck in the toilet so she had a wee chat with me, basically it was a moan about the cost of living.

She started off by asking what we paid for our oil, "£1.10/lt", I said (when I checked it up it was actually £1.07), she thought that was dear, hers cost her £1.00/lt (but they got nearly twice as much as us), at £1.00/lt it would have saved us £37.00. Then she asked me to guess what a price of coal was. We haven't bought coal for a couple of years because (a) we haven't had the chimney swept since Covid and (b) neither of us is really physically capable of riddling the fire and filling the coal bucket any more. £15.00 was the answer. I couldn't believe it, must have been a 50kg bag.

Cooking oil is going to be impossible to get, and tins of tuna are a ridiculous price in Tesco but still reasonable in Asda.

Slightly depressed after that conversation, but relieved we don't buy coal any more.

[Clown Job]

 

[Todd_is_God]

16 hours ago, BigDoddyKane said:

I was thinking the same when I saw that, how does this help?

It will help those re-mortgaging be approved for a new fixed rate term, rather than be forced to stay on the SVR, possibly?

[Detournement]

There is about to be a years long completely contrived recession to protect the wealth of the super rich who have been making billions from QE for the past decade and don't want to give it up.

The 'We' Larry is using here does not include any of us.

 

[parsforlife]

 

 

 

Edited June 21, 2022 by parsforlife

[Jacksgranda]

16 minutes ago, Detournement said:

There is about to be a years long completely contrived recession to protect the wealth of the super rich who have been making billions from QE for the past decade and don't want to give it up.

The 'We' Larry is using here does not include any of us.

 

I'm not sure how 2 years of unemployment at 7.5% is the same as 5 x 5%. Or 1 year at 10% = 5 years at 5%. What am I missing here?

[Detournement]

19 minutes ago, Jacksgranda said:

I'm not sure how 2 years of unemployment at 7.5% is the same as 5 x 5%. Or 1 year at 10% = 5 years at 5%. What am I missing here?

He's saying you get a bigger long term effect from the shorter more violent shock than the longer more moderate situation.

Basically if unemployment hits 10% it means 1 in 20 jobs are gone, no one can get a pay rise and people will work for buttons to have any money coming in. It also means more directly employed jobs becoming gig economy roles.

Plus more people die and end up in prison so that helps people like Larry Summers as well. 

[Left Back]

2 minutes ago, oaksoft said:

Actually it does exist.

Millions of houses are in the hands of an army of Buy-to-Letters who own multiple houses via bank loans which renters are paying off for them.

The issue can be solved by prising it out of their hands.

The Buy-to-Letters have created a national housing shortage forcing house prices up as a direct result.

And there are more people needing to rent because of that, causing a bubble in rental prices too.

We should not be seeing house prices and rental prices BOTH go up across the country and BTL causes this.

Fix that and you'll see an easing of both house prices and rents.

How do you figure this out?  The national housing shortage is there because not enough homes are being built to cater for both a growing population and a changing demographic.  Whoever owns the existing homes doesn't create a shortage (although it does drive prices up).  If you nationalised all private rented homes (which we all know is fantasy land stuff) there would still be a housing shortage because people are already living in those houses.  Changing ownership does not magically create more homes for people that want them.

The shortage was created during Right to Buy back in the 80's and stopping councils building new houses.  Successive governments have done nothing to rectify that.

[Jacksgranda]

3 minutes ago, Detournement said:

He's saying you get a bigger long term effect from the shorter more violent shock than the longer more moderate situation.

Basically if unemployment hits 10% it means 1 in 20 jobs are gone, no one can get a pay rise and people will work for buttons to have any money coming in. It also means more directly employed jobs becoming gig economy roles.

Plus more people die and end up in prison so that helps people like Larry Summers as well. 

He should have said "or" instead of "in other words" then, so this thick prole could understand it.

Also if unemployment hits 10% are not 2 in every 20 jobs gone, rather than 1?

[Detournement]

3 minutes ago, Jacksgranda said:

He should have said "or" instead of "in other words" then, so this thick prole could understand it.

Also if unemployment hits 10% are not 2 in every 20 jobs gone, rather than 1?

If it goes from 5% to 10% then 5% of jobs are gone ie 1 in 20.

 

[Clown Job]

1 hour ago, Detournement said:

There is about to be a years long completely contrived recession to protect the wealth of the super rich who have been making billions from QE for the past decade and don't want to give it up.

The 'We' Larry is using here does not include any of us.

 

This on top of the last 12 years of austerity 

[Left Back]

3 minutes ago, oaksoft said:

If who owned the existing housing stock didn't create a shortage, there would be no increase in prices.

Your point underlined above is only true when BTL owners only have one or two properties but we see lots of them owning swathes of properties through Limited Companies. That's not so much a shortage of property but a shortage of people to negotiate with. The result is the same. Prices go up.

For example, if I own 40 houses, that's 39 houses that 39 other people can't own who now have to rent from me and the number of people who own houses up which are subsequently put up for rent decreases. So if you want to rent you need to do so from a smaller and smaller group of owners who own more and more property and that drives rental prices up too.

All this price growth is entirely artificial and is exactly what happens when you place control of a finite resource into a few hands.

You’re describing price growth.  Not the creation of a property shortage.  

I’ll say it again.  BTL is bad for other reasons but is not causing a shortage of houses.  That is caused by not enough houses being built over a period of decades.

If you owned 40 houses and rented 39 of them out if they were nationalised the council would still rent those 39 houses to the people that were already in them.  You haven’t changed a thing regarding number of available homes.

[yoda]

3 hours ago, Detournement said:

There is about to be a years long completely contrived recession to protect the wealth of the super rich who have been making billions from QE for the past decade and don't want to give it up.

The 'We' Larry is using here does not include any of us.

 

 

 

[Dawson Park Boy]

19 minutes ago, Left Back said:

You’re describing price growth.  Not the creation of a property shortage.  

I’ll say it again.  BTL is bad for other reasons but is not causing a shortage of houses.  That is caused by not enough houses being built over a period of decades.

If you owned 40 houses and rented 39 of them out if they were nationalised the council would still rent those 39 houses to the people that were already in them.  You haven’t changed a thing regarding number of available homes.

You are correct.

[Detournement]

19 minutes ago, yoda said:

 

 

I'd like to see 100% unemployment in this photo.

On the right we have James Staley who had to resign as head of Barclays Bank because of his close relationship with Jeff. It's on record that Staley was sending his own daughter to Epstein's parties.

Then Larry, Jeff and Bill need no introduction.

The guy on the left is Boris Nikolic a Serbian immunologist who was the head of science for the Gates Foundation and named by Epstein as the executor of his will. Quite the CV. 

Edited June 21, 2022 by Detournement