(Buckle up) Recession for more than a year

[Mr Kobayashi]

Indeed, but sadly there will be a lot of unfortunate folk that have just happened to buy at the top of the market, or older folk with modest 2nd or 3rd properties to provide a retirement income.

They could have been less greedy and brought a pension plan instead.

What's modest about having three properties?

 

[bluethrunthru]

The UK economy will be plunged into recession for more than a year this autumn as rising energy prices push inflation above 13%, the Bank of England has warned.

In a bleak outlook for consumers and business, the Bank forecast five quarters of economic contraction and a 5% fall in real-terms living standards, and increased interest rates by 0.5 percentage points, the largest single rise in 28 years.


The Bank's baseline forecast is for GDP to fall by 1.25% in 2023 and 0.25% in 2024, the first instance of two years of annual economic contraction since the 1960s.

But vote Tory because they are trusted with the economy ha ha ha ha - another fucking lie about to be busted

 

[Mazzarelli's Swiss Cheese]

They could have been less greedy and brought a pension plan instead.

What's modest about having three properties?

Not sure how old you are, but if you can remember the 80's then you'll know that a good portion of today's pensioners might very well have had their company pensions stolen from them. Also, the low interest, low growth of the last decade or so has probably made property a better bet than annuity returns.

 

[Mr Kobayashi]

Not sure how old you are, but if you can remember the 80's then you'll know that a good portion of today's pensioners might very well have had their company pensions stolen from them. Also, the low interest, low growth of the last decade or so has probably made property a better bet than annuity returns.

And with higher returns comes more risk and uncertainty.

I have no sympathy at all for amateur landlords. Sell the car, get a shopping trolley, downsize the house and eat cold beans.

These are generally the sort of people who lecture others about living within their means and voted for the Tories and austerity because they propped up their house prices.

They provide very little productive or social value to the economy or society.

 

[Mazzarelli's Swiss Cheese]

And with higher returns comes more risk and uncertainty.

I have no sympathy at all for amateur landlords. Sell the car, get a shopping trolley, downsize the house and eat cold beans.

These are generally the sort of people who lecture others about living within their means and voted for the Tories and austerity because they propped up their house prices.

They provide very little productive or social value to the economy or society.

Actually property is probably the safest long term bet there is, so the only uncertainty comes if you over extend to buy hoping to make a quick short term profit, in which case I absolutely agree with you. I don't think it's just those people that will get burned this time though.

 

[Mr Kobayashi]

Actually property is probably the safest long term bet there is, so the only uncertainty comes if you over extend to buy hoping to make a quick short term profit, in which case I absolutely agree with you. I don't think it's just those people that will get burned this time though.

You are talking about risk. Uncertainty is things not envisioned. A Pandemic caused recession is such an exogenous event.

There is always uncertainty.

To be honest people getting burned from financialisation of housing is a welcome thing in the long run. It's time for that demand to invest to go to something that benefits the economy and society more.

I don't have any sympathy for people who play an active role in making the housing crisis worse by inflating land values and get their fingers burned.

 

[RobMCFC]

You are talking about risk. Uncertainty is things not envisioned. A Pandemic caused recession is such an exogenous event.

There is always uncertainty.

To be honest people getting burned from financialisation of housing is a welcome thing in the long run. It's time for that demand to invest to go to something that benefits the economy and society more.

I don't have any sympathy for people who play an active role in making the housing crisis worse by inflating land values and get their fingers burned.

Totally agree. You buy a house for you and your family to live in, not to make money off it.

Looking after one house is stressful enough - I cant imagine a situation where I'd be remotely tempted to buy a second house either here or abroad.

 

[Vic]

When there was the world wide banking crisis the tories blamed labour , can i blame the tories for not being better prepared for this ?

Yes i will

The Tories were also claiming that under them we'd had years of low interest rates (they were low before the coalition got in).

 

[Vic]

they could do more by limiting what energy companies can increase charges for, I know the volatility in the market means energy prices are fluctuating but the gov could easily say that things like standing charges should remain static. and if a company advertises themselves as 100% renewable electric then they should be very limited in what they can charge increase wise on that.

Except the profit on renewables changes the economics on saving the planet for the better. Put it another way, just tax the fossil fuel profits.

Neither Truss removing the green levy nor Sunak not relaxing planning rules for onshore windfarms will help, as it just keeps up the market pricee for the oil and gas producers.

The standing charges hike is a scandal, as the less energy you use the more it's a proportion of your bill.

 

[Vic]

Pretty sure these clowns predicted a depression when coronavirus was at its height.

Fir every threat there’s an opportunity.

Spoken like a spiv.