Brown in final gamble: to print money
Discussion
Teppic said:
catso said:
JamesM said:
because its essentially worth less. It all to do with the country's gold reserves and wizardry with numbers
Don't mention Gold reserves, Gordon gave those away for some magic beans. At least, he was told they were magic beans. I'd have thought that the word "Heinz" on the side of the can would be a bit of a giveaway, though... article is "a bit short on analysis" ... you might even think they were being hysterical on purpose. Don't get me wrong - we're pretty deep in the st - but the idea of "printing money" is to try to counteract the reduction in the money supply that is already occurring as banks try to deleverage. There is never a fixed amount of money in the economy. It is constantly being created and destroyed. If banks are reducing the money supply, it isn't entirely mad to try to soften the impact by injecting money into the economy elsewhere.
It's a pity papers like the Standard don't stick to the good solid ground when they attack this government's economics. Heaven knows, there's acres of stuff to attack them with. It's folly to start underminig the paper's credibility by exagerating it. If you attack the government with exagerations that they can refute, you're letting them off the hook.
It's a pity papers like the Standard don't stick to the good solid ground when they attack this government's economics. Heaven knows, there's acres of stuff to attack them with. It's folly to start underminig the paper's credibility by exagerating it. If you attack the government with exagerations that they can refute, you're letting them off the hook.
ATG said:
article is "a bit short on analysis" ... you might even think they were being hysterical on purpose. Don't get me wrong - we're pretty deep in the st - but the idea of "printing money" is to try to counteract the reduction in the money supply that is already occurring as banks try to deleverage. There is never a fixed amount of money in the economy. It is constantly being created and destroyed. If banks are reducing the money supply, it isn't entirely mad to try to soften the impact by injecting money into the economy elsewhere.
It's a pity papers like the Standard don't stick to the good solid ground when they attack this government's economics. Heaven knows, there's acres of stuff to attack them with. It's folly to start underminig the paper's credibility by exagerating it. If you attack the government with exagerations that they can refute, you're letting them off the hook.
Quite. They should probably have started this some time ago.It's a pity papers like the Standard don't stick to the good solid ground when they attack this government's economics. Heaven knows, there's acres of stuff to attack them with. It's folly to start underminig the paper's credibility by exagerating it. If you attack the government with exagerations that they can refute, you're letting them off the hook.
I'm a little worried about this.
I'm 25 and I have been renting and saving a deposit for the past 3 years. This has meant I have spent very little and cut right down on luxury's. I'm even driving around in a 10 year old car etc. I have so far saved a deposit of about 40k but this currently is only about 20% of the value of the type of house I would like to purchase. I was hoping to save about 30%-35% of the property price before I go ahead to cover legals, allow me to furnish it and still have a bit of a buffer and then go for a 75% LTV mortgage.
Are my £40k of savings likely to become worthless in real terms? If so I'm going to be very pissed off. I deliberately didn't take on a 100% mortgage as IMO the idea of no equity in a property is just stupid. I did the "sensible" thing and saved for what I wanted and now he might make my savings worthless in an effort to bail out the reckless/naive with 100% LTV mortgages?
I'm 25 and I have been renting and saving a deposit for the past 3 years. This has meant I have spent very little and cut right down on luxury's. I'm even driving around in a 10 year old car etc. I have so far saved a deposit of about 40k but this currently is only about 20% of the value of the type of house I would like to purchase. I was hoping to save about 30%-35% of the property price before I go ahead to cover legals, allow me to furnish it and still have a bit of a buffer and then go for a 75% LTV mortgage.
Are my £40k of savings likely to become worthless in real terms? If so I'm going to be very pissed off. I deliberately didn't take on a 100% mortgage as IMO the idea of no equity in a property is just stupid. I did the "sensible" thing and saved for what I wanted and now he might make my savings worthless in an effort to bail out the reckless/naive with 100% LTV mortgages?
peterh2 said:
I'm a little worried about this.
I'm 25 and I have been renting and saving a deposit for the past 3 years. This has meant I have spent very little and cut right down on luxury's. I'm even driving around in a 10 year old car etc. I have so far saved a deposit of about 40k but this currently is only about 20% of the value of the type of house I would like to purchase. I was hoping to save about 30%-35% of the property price before I go ahead to cover legals, allow me to furnish it and still have a bit of a buffer and then go for a 75% LTV mortgage.
Are my £40k of savings likely to become worthless in real terms? If so I'm going to be very pissed off. I deliberately didn't take on a 100% mortgage as IMO the idea of no equity in a property is just stupid. I did the "sensible" thing and saved for what I wanted and now he might make my savings worthless in an effort to bail out the reckless/naive with 100% LTV mortgages?
I doubt your savings will become 'worthless in real terms' but GBP isn't doing so well against the USD and EUR to name but two, so there may be implications depending on where you travel, where you work, and how you're paid. One thing - think of the bigger and better property you can consider getting into now, compared to back then.I'm 25 and I have been renting and saving a deposit for the past 3 years. This has meant I have spent very little and cut right down on luxury's. I'm even driving around in a 10 year old car etc. I have so far saved a deposit of about 40k but this currently is only about 20% of the value of the type of house I would like to purchase. I was hoping to save about 30%-35% of the property price before I go ahead to cover legals, allow me to furnish it and still have a bit of a buffer and then go for a 75% LTV mortgage.
Are my £40k of savings likely to become worthless in real terms? If so I'm going to be very pissed off. I deliberately didn't take on a 100% mortgage as IMO the idea of no equity in a property is just stupid. I did the "sensible" thing and saved for what I wanted and now he might make my savings worthless in an effort to bail out the reckless/naive with 100% LTV mortgages?
As for your car being 10 years old, pah - one of mine is 14 the other is 21
peterh2 said:
Are my £40k of savings likely to become worthless in real terms? If so I'm going to be very pissed off. I deliberately didn't take on a 100% mortgage as IMO the idea of no equity in a property is just stupid. I did the "sensible" thing and saved for what I wanted and now he might make my savings worthless in an effort to bail out the reckless/naive with 100% LTV mortgages?
Not worthless, but worth less. But, you are in a pickle! If this does result in (price) inflation, and it is hard to see how it won't, earnings, savings, and debts will all reduce in real terms with time, and house prices will go up (GBP goes down, really). But, if you buy a house on a mortgage now and the economy tanks, you could lose your job, and with it your house and savings...
I think I'd say 'stick'.
grumbledoak said:
peterh2 said:
Are my £40k of savings likely to become worthless in real terms? If so I'm going to be very pissed off. I deliberately didn't take on a 100% mortgage as IMO the idea of no equity in a property is just stupid. I did the "sensible" thing and saved for what I wanted and now he might make my savings worthless in an effort to bail out the reckless/naive with 100% LTV mortgages?
Not worthless, but worth less. But, you are in a pickle! If this does result in (price) inflation, and it is hard to see how it won't, earnings, savings, and debts will all reduce in real terms with time, and house prices will go up (GBP goes down, really). But, if you buy a house on a mortgage now and the economy tanks, you could lose your job, and with it your house and savings...
I think I'd say 'stick'.
http://www.pistonheads.com/sales/list.asp?g=1&...
chris watton said:
Nothing about it on the main BBC news at six!
New Labour have got the media terrified of them at the moment - since Mandelson came back I can't think of a bad mainstream story about Labour from the BBC or the independants. Obviously the Daily Wail is still ranting on but none of the visual media is picking up on all of this stuff...And the main story that they've all been instructed to not follow recently? Where the fk is our UN Special Middle East Envoy at the moment, i.e. Tony Blair?! Oh yes, he's probably on a $500k a pop speaking tour in America... All of the Western press OUTSIDE of the UK is asking what he's doing and where is he, but not a peep from the UK press?
I'd love to know what they have over the media, or what legislation they are threatening them with? Assuming that at some point in the next few months Labour lose control of the media, then we can quickly expect new legislation through parliament to censor information that is not in the 'public interest'...
Gordon and his cronies will do everything they can to hold onto power becuase they know that once they are out, they will self-destruct back to Old Labour and not get back into power for decades.
Fatboy said:
The obvious F-cars and P-cars and M-cars and Astons etc are great but that Arnage Red Label in dark blue sapphire, now I could enjoy living in that Being able to travel in it would be a bonus
turbobloke said:
Fatboy said:
The obvious F-cars and P-cars and M-cars and Astons etc are great but that Arnage Red Label in dark blue sapphire, now I could enjoy living in that Being able to travel in it would be a bonus
And I want that Red Label as well
catso said:
Printing more money would release a flood of extra funds to buy assets, with the new cash filtering through to businesses and families.
I don't understand this. How does more money end up with families? I assume that wages aren't going to increase when this happens. And they're not just going to hand out £xxxx to everyone in the country. And if more pounds means that each pound is worth less so we'll have inflation and stuff will cost more, surely I'm just going to be worse off?What a joke this is. The government couldnt have cocked it up more if they'd tried!
I think the green shoots of recovery are coming sooner than we think*
It never ceases to amaze me that whatever the government do, it only ever manages to panic the public due to the way the press portray it. A massive lack of confidence in the current government is responsible. Frankly, whatver Gormless and Darlink do, it isnt going to be well recieved.
* I am basing this on the fact Darling has said we're not out the woods yet. He's not been right yet so am assuming he wont be right here either.
I think the green shoots of recovery are coming sooner than we think*
It never ceases to amaze me that whatever the government do, it only ever manages to panic the public due to the way the press portray it. A massive lack of confidence in the current government is responsible. Frankly, whatver Gormless and Darlink do, it isnt going to be well recieved.
* I am basing this on the fact Darling has said we're not out the woods yet. He's not been right yet so am assuming he wont be right here either.
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