Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

As an ace economist and accountant yourself, Goldfinger, I'm very surprised that you're struggling with one of the basic concepts of inflation in that it is used both to devalue debt (private and public) and as a stealth tax on the wealthy. Inflation has been used by countless homeowners over many years to devalue their mortgage and gain equity.

And while we're on the subject of accountancy, were you able to answer my post from a couple of weeks back? I've repeated it for you below to save you the bother of having to trawl through umpteen pages of gobbledegook and find it.



hilary - 18 Apr 2013 10:14 - 24138 of 24519
Hmmmmm. Amazing what you come across when you go digging...


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goldfinger - 07 Mar 2013 11:29 - 22133 of 24136
My days trading index are over Cyners. Now 39, too old its a young mans game that.

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goldfinger - 18 Apr 2013 09:22 - 24123 of 24136
Your 66 same age as Cynic. Lot of oldies on here, last of the summer wine.

Im 42 now. Physicaly fitter than Ive ever been..... 6ft 10inch tall 18.5 stone.

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Does Goldfinger live his life in doggy years?

Cynic, just the tip of the iceberg that example of how increased interest rates are going to hit hard.

Reckon we will see it come Nov 2013 to Dec 2014.

Strap yourself in.

so you've given yourself a 13 month window??

by the way, you choose to forget that interest rates have been at historic lows for the last 3 years or more .... further, there is no indication that usa is in any mood to raise rates, and that is often if not usually the key for rates in the rest of the world

as an aside, it's interesting how we like our press to beat us up with doom and gloom while saying how well europe is doing economically ..... trust me, it most certainly is not! .... ask any friends - i assume even you have some :-) -who live in france or nl or germany (spain, greece, portugal etc are already accepted as being out for the count)

He's just playing catch up. :-)

And another newspaper warning Cynic, thats 2 today one the main tory rag and the other err central ground.......

The Independent:
Thousands with interest-only mortgages could lose their homes …Facebook revenues increase 38 per cent
…Weak US economy prompts Fed to stick with stimulus plan …UK Coal talks to creditors in bid to save 2,000
jobs

You mark my words carefully cynic, im saving these last few posts to word.

Ill reproduce them later this year or early next year.

A third paper now the Guardian..........

http://www.guardian.co.uk/money/2013/may/02/interest-only-mortgages-storing-up-trouble

Tick tock tick tock tick tock tick tock.

Guido Fawkes ‏@GuidoFawkes 53m

Sun Says "None of the Above". Refuses to endorse any of the parties - says vote on local issues. Effectively withholding Tory endorsement.

sticky - the concern is nothing to do with interest rates per se .... the "concern" is that an awful lot of people have chosen to ignore the fact that they'll have to repay the capital in due course .... frankly, i think interest-only mortgages are downright dangerous, especially for the average bod, just as were those "cheap" mortgages in € etc instead of £

LOL, most of these are not fixed % rate mortgages you plonker.

You need to stop listening to Hilary who only looks at the micro picture rather than the macro picture.

No doubt hes been saying that people with these arrangements are going to hope house inflation will repay the capital element blah blah blah etc etc. (have him filtered)

WELL at Winnifroths master Investor 10 days ago, the top cheese were warning of a Housing Price Market Collapse!!!!!!!!!.

Negative equity and increased interest rates = TOTAL MISERY.

Anybody taking out an interest only mortgage before the spring/summer of 2005 is unlikely to be affected by being unable to roll over their loan. The average national house price as of Feb 2013 was £163.6k which is approximately where prices were at 8 years ago.

Seeing as most mortgages are taken out for 15, 20 or 25 years, the vast majority of borrowers unable to roll over are still going to have plenty of equity in their property as a result of house price inflation over the term of the loan.

I don't have average house price figures to hand for the 1990's and earlier, but I would've thought the average UK house price 20 years ago was about £40k. So a typical 80% loan of £36k taken out in 1993 offset against the average house price now, would still leave the average borrower with around £125k of equity in their property if they were forced to sell.

What's all the fuss about? And, as cyners says, anybody taking out an interest only loan not backed up by an endowment only has themselves to blame.

Oh btw, goldplonker. I'm a she, not a he.

As they say, you should stay close to your friends and even closer to your enemies!

Historical UK house prices

cynic - 02 May 2013 08:30 - 24522 of 24525
so you've given yourself a 13 month window??

by the way, you choose to forget that interest rates have been at historic lows for the last 3 years or more

=------

13 month window
George being an expert is about 3years behind his original targets, it won't be in his lifetime as chancellor. (I don’t think many can see the original target now.)
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The point about low interest rates is that it should be stimulating the economy, but it ain’t.

Why, because the UK business community has no faith in this grandstanding incompetent government, who say one thing one day and reverse it the next.

You would expect that a government in the state it is at the moment would expand its area of competency, by introduce “experts” from all areas it is supposed to represent. What has Cameron done by introducing new “advisors” to its inner thiefdom, from its own “out of touch family” in order to give confidence to lesser mortals.

By appointing his “mates”, it looks more like an attempt to bolster his own flagging support. (A pity his father hadn’t worn one.)


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Fred did you watch newsnight last night?.

Cameron now after his new appointments totaly surrounded by his old Eton hangers on. All Bullingdon boys.

How 'out of touch' can one get.

Pathetic.

It wont go un-noticed.

i have been converted and shall now nip out to cast my vote for SWP ..... unlike the arrogant one who considers actually voting instead of berating to be "oh dear; how bourgeois and infra dig"

Puts things into perspective........


Hari RippedOffBriton ‏@RippedOffBriton 1h

For perspective: Benefit fraud=£1bn; Tax avoidance=£5bn; Total all tax dodging=£35-£100bn+ See examples..............

http://bit.ly/ihejtD

You might as well vote for Labour as it becoming just like the SWP.

GF,

I did.

It was the obvious disconnect and its defence, which still amazes me.

Also, knowledge can be useful, even if it has to be hit into some with a "sledge", but if you can't apply, or programme the data effectively, then it can be harmful and cloud thinking.

Also, the problems with some institutional "thinking", are that they are built on "beliefs" and ingrained, by some who overvalue themselves impart the same beliefs to their disciples.