Now you know why the council tax was rising so fast, to keep up
with houses prices, now it will rise even faster as is is used
to bail out property specualtors to the tune of several hundred
billion pounds. HEad they win tails they cannot lose - the end is nigh.

http://news.bbc.co.uk/1/hi/uk_politics/7587257.stm

What with Alistair Darling scaring the horses and Mervyn King in his last 
inflation statement saying "It might still ... just.. be summer but there is 
a feeling of chill in the economic air",  has anyone got any guess just how 
bad this is going to get?.... also predictions for inflation. Does inflation 
rise as it is doing now then as the economic chill hits the economy and 
businesses go under and unemployment bites does inflation then fall?... and 
over what time scale do we reckon on this cycle...7 years?
Furthermore in the last recession interest rates dropped right down to 
unsurpassed low rates... will that be the expected outcome this time around?

On Sat, 30 Aug 2008 13:54:32 +0100, "BigGirlsBlouse"
 wrote:

>What with Alistair Darling scaring the horses and Mervyn King in his last 
>inflation statement saying "It might still ... just.. be summer but there is 
>a feeling of chill in the economic air",  has anyone got any guess just how 
>bad this is going to get?.... also predictions for inflation. Does inflation 
>rise as it is doing now then as the economic chill hits the economy and 
>businesses go under and unemployment bites does inflation then fall?... and 
>over what time scale do we reckon on this cycle...7 years?
>Furthermore in the last recession interest rates dropped right down to 
>unsurpassed low rates... will that be the expected outcome this time around? 


But Gordon has told Darling off for this scaremongering and continues
along with his plans to try and avoid the bust that follows boom.
-- 
http://www.freedeliveryuk.co.uk
http://www.holidayunder100.co.uk

On 31 Aug, 10:24, mogga  wrote:
> On Sat, 30 Aug 2008 13:54:32 퍝, "BigGirlsBlouse"
>
>  wrote:
> >What with Alistair Darling scaring the horses and Mervyn King in his last
> >inflation statement saying "It might still ... just.. be summer but there is
> >a feeling of chill in the economic air",  has anyone got any guess just how
> >bad this is going to get?.... also predictions for inflation. Does inflation
> >rise as it is doing now then as the economic chill hits the economy and
> >businesses go under and unemployment bites does inflation then fall?... and
> >over what time scale do we reckon on this cycle...7 years?
> >Furthermore in the last recession interest rates dropped right down to
> >unsurpassed low rates... will that be the expected outcome this time around?
>
> But Gordon has told Darling off for this scaremongering and continues
> along with his plans to try and avoid the bust that follows boom.

And if I read my Sunday Times correctly buy-to-letters are still
piling in, taking advantage of an *even more advantageous* situation:

1) House prices down.
2) Rents higher than ever.
3) Mortgages available for anyone who can put up 15%.

Maybe there'll be one last "up" on the rollercoaster before the
*proper* crash.

Re London:

In the 70's the squatter movement was able to absorb the empty council
housing in London to alleviate the homelessness of people evicted and
jobless; this time round there are only empty BTL's. Don't leave them
empty for long!

We have the Olympics coming so all is well :)

On Sun, 31 Aug 2008 09:27:43 -0700 (PDT), Troy Steadman
 wrote:

>On 31 Aug, 10:24, mogga  wrote:
>> On Sat, 30 Aug 2008 13:54:32 +0100, "BigGirlsBlouse"
>>
>>  wrote:
>> >What with Alistair Darling scaring the horses and Mervyn King in his last
>> >inflation statement saying "It might still ... just.. be summer but there is
>> >a feeling of chill in the economic air",  has anyone got any guess just how
>> >bad this is going to get?.... also predictions for inflation. Does inflation
>> >rise as it is doing now then as the economic chill hits the economy and
>> >businesses go under and unemployment bites does inflation then fall?... and
>> >over what time scale do we reckon on this cycle...7 years?
>> >Furthermore in the last recession interest rates dropped right down to
>> >unsurpassed low rates... will that be the expected outcome this time around?
>>
>> But Gordon has told Darling off for this scaremongering and continues
>> along with his plans to try and avoid the bust that follows boom.
>
>And if I read my Sunday Times correctly buy-to-letters are still
>piling in, taking advantage of an *even more advantageous* situation:
>
>1) House prices down.
>2) Rents higher than ever.
>3) Mortgages available for anyone who can put up 15%.
>
>Maybe there'll be one last "up" on the rollercoaster before the
>*proper* crash.

This seems to partly contractdict what was stated in another thread in
this ng in which claims were made that rents have been static for
years.

In addition mortgages are much more expensive that they were two years
ago.

-- 
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(")_(") their inaction to the problem. I am blocking most articles
posted from there.  If you wish your postings to be seen by
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BigGirlsBlouse  wrote:

> What with Alistair Darling scaring the horses and Mervyn King in his last 
> inflation statement saying "It might still ... just.. be summer but there is 
> a feeling of chill in the economic air",  has anyone got any guess just how 
> bad this is going to get?.... 

Yeah, but I had it pegged as the worst for 70 years...

60 really is an odd number for him to pick. Is he warning us that it
will be like the 1930's or not?


FoFP

In article <g9gi7d$jgq$1@scotsman.ed.ac.uk>,
 M Holmes  writes:
> BigGirlsBlouse  wrote:
> 
> > What with Alistair Darling scaring the horses and Mervyn King in his last 
> > inflation statement saying "It might still ... just.. be summer but there is 
> > a feeling of chill in the economic air",  has anyone got any guess just how 
> > bad this is going to get?.... 
> 
> Yeah, but I had it pegged as the worst for 70 years...
> 
> 60 really is an odd number for him to pick. Is he warning us that it
> will be like the 1930's or not?

Perhaps it's still 1997 in his head.
-- 
SAm.

Mark wrote:

>>And if I read my Sunday Times correctly buy-to-letters are still
>>piling in, taking advantage of an *even more advantageous* situation:
>>
>>1) House prices down.
>>2) Rents higher than ever.
>>3) Mortgages available for anyone who can put up 15%.
>>
>>Maybe there'll be one last "up" on the rollercoaster before the
>>*proper* crash.
> 
> This seems to partly contractdict what was stated in another thread in
> this ng in which claims were made that rents have been static for
> years.
> 
> In addition mortgages are much more expensive that they were two years
> ago.

Rents have indeed been static for years.  Some people seem to be trying to
talk the rental market up, which is pretty futile, because you don't rush
out to rent a property in the hope that rent will go up in the same way
that you might do with shares or gold coins.

The figures that are coming out appear to indicate that demand for rental
properties is up about 20%, and supply is up about 30%, so rents may well
go down rather than up.

Jonathan Bryce <jonathan@localhost.localdomain> wrote:

>> This seems to partly contractdict what was stated in another thread in
>> this ng in which claims were made that rents have been static for
>> years.
>> 
>> In addition mortgages are much more expensive that they were two years
>> ago.

> Rents have indeed been static for years.  Some people seem to be trying to
> talk the rental market up

Indeed. As a data point, my rent hasn't moved in five years. People who
have moved house have commented that they got more house for less rent
by being choosy.

> The figures that are coming out appear to indicate that demand for rental
> properties is up about 20%, and supply is up about 30%, so rents may well
> go down rather than up.

That would be normal in a debt-deflation. I can see a few factors
which could drive rents down:

1. Immigrants want to make money to send home. In a recession they'll go
to a country in which they can still make money. Empty flats mean lower
rents.

2. People in trouble will rent their houses/flats and move in with
relatives. Increase of supply means lower rents.

3. Debt-deflationary recessions are precisely the situations which
reduce families splitting up etc. People are less willing to struggle on
with things if they can afford to do otherwise. When the converse
applies, demand for housing will fall.

4. Debt-deflations increase unemployment and drive down real wages for
those still in employment. Landlords can only get what people can
afford, or have the place empty. 

FoFP

-- 
"They say there are no atheists in a foxhole. Well, there
are no libertarians in a financial crisis, either."

                                 --Harvard economist Jeffrey Frankel