tag:blogger.com,1999:blog-1141932539860553199.post458652644881515853..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: "Supernatural beings face disaster - even without an increase in loan rates"Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-1141932539860553199.post-43702634190917342602013-02-14T20:25:50.404+00:002013-02-14T20:25:50.404+00:00B: "It's as if the crash of the 90's ...B: <i>"It's as if the crash of the 90's was before records or human memory began. "</i><br /><br />That's the bit that baffles me. Not only do I remember the 1990s price slump clearly, It's all there in the records, and if you dig a bit, it's there in the 1920s records (pre-empting The Depression), it was there in Japan in the 1980s, it's there every 18 years. Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-45686435346357389772013-02-14T18:30:27.123+00:002013-02-14T18:30:27.123+00:00"for a very short period, say 2000 to 2007.&q..."for a very short period, say 2000 to 2007."<br /><br />Well, no, there was the previous bubble, too, but what gets me is how people behave as if it was always thus. It's as if the crash of the 90's was before records or human memory began. OTOH, I might have had false memories implanted in my brain by LVT activists.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-79517157078065005592013-02-14T13:39:49.395+00:002013-02-14T13:39:49.395+00:00FR, not only that, but this was only ever a "...FR, not only that, but this was only ever a "tried and trusted" route to riches for a small number of people for a very short period, say 2000 to 2007. <br /><br />Prior to that, there was no "property ladder", you bought a house you wanted to live in, if prices went up you felt pretty pleased with yourself, but that was about it.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-27369568538552879702013-02-14T13:29:48.997+00:002013-02-14T13:29:48.997+00:00"Not only that, but the option of simply sell..."Not only that, but the option of simply selling the property for a big capital gain is not the tried and trusted solution that it once was, given the subdued state of the UK housing market."<br /><br />So reduce the price and have a slightly smaller "big capital gain" then!!!<br /><br />Jesus, this really boils my piss. It's as if a massive capital gain just for sitting on your arse is some sort of basic human right!!<br /><br />GahhH!Fierce Rabbithttps://www.blogger.com/profile/00007294384136175780noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-22718771661895236492013-02-13T13:44:02.790+00:002013-02-13T13:44:02.790+00:00B, to paraphrase you:
"Those who make provis...B, to paraphrase you:<br /><br /><i>"Those who make provisions for paying back their debt, cut back on their inclination to spend."</i><br /><br />Which is what I meant, if you have to pay £500 a month in rent or mortgage interest, then you can't spend that on real goods and services.<br />Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-72044473415192386432013-02-13T12:58:52.763+00:002013-02-13T12:58:52.763+00:00"B, debts don't reduce your willingness t..."B, debts don't reduce your willingness to spend, they reduce your ability to spent."<br /><br />Sure, there are some people for whom only the non-availability of further credit will reduce their willingness to spend, but luckily not everyone subscribes to the Great Denial. Those who don't make provisions for paying back their debt, which means cutting back on their inclination to spend.<br />So what the BoE is really afraid of is that too many infidels not believing in the GD and they might be facing a double whammy of the banks having fewer customers borrowing money, plus a shrinking economy.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-51367425126597584232013-02-13T10:08:35.844+00:002013-02-13T10:08:35.844+00:00B, debts don't reduce your willingness to spen...B, debts don't reduce your willingness to spend, they reduce your ability to spent. <br /><br />AKH, that's the general idea :-)<br /><br />RM, B, or to put that in context: <i>"The army of undead borrowers will feast on the blood of the savers."</i>Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-84496970320873432112013-02-13T09:21:32.500+00:002013-02-13T09:21:32.500+00:00RM, two points:
- Inflation doesn't "whit...RM, two points:<br />- Inflation doesn't "whittle away" debts, it pays them back by stealing from savers.<br />- If there's nothing in the kitty, as is the case with UK plc, you can't afford to pay back £6,600 either.<br /><br />Your comment is part of the Great Denial: "Oh, it doesn't matter, we'll just inflate our debts away", forgetting, that to get that debt down to zero, or as close to zero as makes no difference will either take a very long time or Weimar Republic levels of inflation.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-14915217544286430892013-02-13T07:14:37.097+00:002013-02-13T07:14:37.097+00:00Can't see the problem. Debts are constantly wh...Can't see the problem. Debts are constantly whittled away by inflation. E.g. £10,000 of mortgage and 2% inflation becomes £6,600 after 20 years.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-12693466804799205922013-02-12T19:26:44.147+00:002013-02-12T19:26:44.147+00:00It's so bad they could end up doing something ...It's so bad they could end up doing something desperate such as selling organs. Not their own obviously.A K Haarthttps://www.blogger.com/profile/05897490979828603179noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-75601393298964412282013-02-12T18:36:17.244+00:002013-02-12T18:36:17.244+00:00"The Bank of England has expressed concern ab..."The Bank of England has expressed concern about the effect of large household debts on consumers’ willingness to spend"<br /><br />No shit, Sherlock. They'll be expressing concern about the Catholicity of the Pope next, I suppose.<br /><br />The UK, in common with most of the developed world, seems to be totally in denial about debt. No-one seems to realise that a loan has to be paid back at some point, otherwise it's not a loan, it's a gift. If the politicians and the Treasury appear to be unable to grasp this simple fact, why should the rest of us worry about it? Mind you the pols are worse. At least most of the citizens are living within their means, even if they cannot afford to pay off the principal of the debt. The UK, meanwhile, can't even afford to pay the interest on its debt without running up more debt.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.com