asterisk2a + mortgage   107

Millennials spend three times more of income on housing than grandparents | Society | The Guardian
Millennials are spending three times more of their income on housing than their grandparents yet are often living in worse accommodation, says a study launched by former Conservative minister David Willetts that warns of a “housing catastrophe”. [....] They are four times as likely to rent privately than two generations ago, a sector which has the worst record for housing quality, the report claims.
Millennials  UK  housing  crisis  affordable  social  Generation  Rent  Generationengerechtigkeit  babyboomers  baby  boomers  disposable  discretionary  income  Spending  Generationy  GenY  oligopol  oligopoly  Corruption  lobby  vested  interest  bubble  underinvestment  Austerity  debt  revolving  door  asset  distortion  London  Productivity  output  gap  skills  student  loan  GFC  mortgage  risk  recovery  secular  stagnation  lost  lostdecade  decade  history  Margaret  Thatcher 
september 2017 by asterisk2a
Where have all the movers gone? - Council of Mortgage Lenders
It should be known by now that the policy of a home owning democracy supported by London and exploited by London was and is and will be a catastrophe to the productivity and skills of this economy. Because of the misdirected money flows into unproductive houses (capital, asset for retirement, welfare, social mobility of kids). To the contrary of Germany. When policy of capital investment is geared towards poductive investments, assets, capital, skills, expansion, R&D. And where renters have rights! //&! https://twitter.com/resi_analyst/status/880801297208889344 - The housing ladder only worked because of the unique economic conditions of the late 20th century. It's now broken and unlikely to recover. & https://twitter.com/tomhousing/status/881775765033025536 - and houses don't pay taxes (NI, pension pot).
Housing  Crisis  Generationengerechtigkeit  Generation  Rent  mortgage  ZIRP  QE  NIRP  UK  Lobby  Lobbying  Policy  speculation  ROI  underinvestment  malinvestment  productivity  output  gap  skills  economic  history  Brexit  London  shareholder  profit  maximisation 
july 2017 by asterisk2a
First fall in consumer spending for almost 4 years
Consumer spending has fallen on an annual basis for the first time in almost four years [...] Adjusting for inflation, real consumer spending by British consumers on Visa debit, credit and prepaid cards in May was 0.8 per cent lower than in the same month last year. Visa said that seasonally adjusted spending was 1.8 per cent lower in May compared to April. The figures are unofficial, but suggest that sluggish economic growth continued in the second quarter, after a first quarter in which the UK grew at the slowest rate in the G7. [...] household consumption, which accounts for more than 60 per cent of the economy. [ 80 Services and Consumption 20 manufacturing ] /&! http://www.telegraph.co.uk/business/2017/06/11/new-economic-woes-put-theresa-may-fresh-pressure/ - The crucial services sector stands on the brink of a contraction
UK  Brexit  GE2017  Consumer  Confidence  creditcard  credit  card  discretionary  spending  disposable  income  inflation  living  standard  wage  growth  recession  Economy  2017  secular  stagnation  deflation  deflationary  BOE  ZIRP  QE  NIRP  Austerity  Services  materialism  Shopping  Consumerism  consumerist  household  debt  mortgage  Manufacturing 
june 2017 by asterisk2a
Distortion of financial economy (speculation), underinvestment in real things.
7:33 QE and ZIRP and banks business model, the financialisation of the western economies, is causing underinvestment now for a too long time, in the real economy (companies, R&D, infrastructure, edu, productivity). - https://www.youtube.com/watch?v=ZL31ORGxZPk - TBTF central banks w QE blance sheet unable to unwind it! Loss of faith in politics and the system. (2) credit bubble from consumers that made the recovery w the help of ZIRP QE - zombie consumer zombie companies zombie banks - kept just about alive w QE and ZIRP. america uk worth more on paper due to credit and forex USD £ than their real economy realer wirtschaftswert (3) Argentina example.
ZIRP  NIRP  QE  housing  mortgage  bubble  real  estate  squeezed  middle  class  working  poor  poverty  trap  social  income  mobility  recovery  GFC  central  banks  ECB  BOE  Fed  BOJ  austerity  Schuldenbremse  trickle-down  underinvestment  economic  history  TBTF 
may 2017 by asterisk2a
The ten graphs which show how Britain became a wholly owned subsidiary of the City of London (and what we can do about it) – New thinking for the British economy
[ uk banks overinvested enabled by political policy into houses and high streets. underinvested in productive capital like R&D companies in general etc ] >> But it doesn’t increase the productive capacity of the economy one iota: a more expensive house doesn’t produce more intelligent children, and a higher share price doesn’t boost a company’s productivity (though it can indirectly boost its capacity to raise funds for investment). [...] Debt-financed asset purchases are thus fundamentally a Ponzi activity: // not just tight housing supply is increasing prices, but also easy credit/debt/mortgage market! // [...] ultimately, there is a limit to just how much debt individuals and corporations can take on – even with low interest rates
UK  ZIRP  NIRP  QE  housing  market  mortgage  household  consumer  debt  disposable  income  servitude  GFC  recovery  wage  growth  Ponzi  asset  capital  Kapital  BOE  credit  card  affordable  social  servicing  default  rate  insolvency  speculation  unintended  consequences  economic  history  consumption  secular  stagnation  Brexit  policy  fiscal  monetary  Mark  Carney  underinvestment  productivity  R&D  Career  Politicians  Margaret  Thatcher 
may 2017 by asterisk2a
Budget 2017: Asset sales to thank for UK's figures? - BBC News
'we are not paying our way in the world' -- highlight the cheat the Tories are. 1 sale of national assets to lower debt. still horrible trade balance deficit now w even weaker pound. And not mentioned the recovery supported greatly by household debt bubble and mortgage party. GDP per capita, wage growth v inflation, living standard, current account deficit, underinvestment/austerity in edu and health (see imf paper), ... UK becoming a basket case.
Budget  Tories  Conservative  PFI  Assets  George  Osborne  Theresa  May  Manufacturing  underinvestment  Philip  Hammond  London  Services  nasty  party  ZIRP  NIRP  QE  household  debt  consumer  credit  card  creditcard  mortgage  housing  bubble  Productivity  output  gap  skills  STEM  education  policy  Austerity  current  account  deficit  GFC  bank  bailout  GDP  per  capita  IMF  technological  unemployment  David  Cameron  social  mobility  income  wage  growth  downward  gini  Coefficient  child  poverty 
march 2017 by asterisk2a
Budget 2017: Hammond to tell us the Brexit vote could have been worse | Business | The Guardian
consumers carried on spending and businesses continued to expand.

The picture for the public finances is also looking rosier compared with Hammond’s maiden autumn statement in November. [...] But here’s what the chancellor will not tell you: living costs have gone up and will continue to do so. The poorest will be hit hardest as the cost of essentials such as food and heating take a growing chunk out of already tight family budgets. Wages will struggle to match rises in inflation and the government’s benefit cuts mean that incomes will fall for the poorest people in Britain. In short, unless the government does something significant to improve living standards this week, inequality will start rising again.
UK  JAM  working  poor  squeezed  middle  class  Precariat  Theresa  May  Philip  Hammond  Austerity  DWP  HMRC  inflation  wage  growth  social  mobility  inequality  income  Tories  Productivity  child  poverty  trap  output  gap  recovery  GFC  bank  bailout  nasty  party  Conservative  Generationengerechtigkeit  babyboomers  Millennials  generation  rent  living  standard  discretionary  spending  disposable  credit  taxation  household  debt  mortgage  housing  crisis  Consumer  Consumerism  economic  history  neoliberalism  interventionism  crony  capitalism  tax  evasion  avoidance  corporatism  Exploitation  zero  hour  contract  part-time  minimum  generational  divide  Triple  Lock  Pension 
march 2017 by asterisk2a
STEVE KEEN on Private Debt - YouTube
the trick is up for tory austerity soon, when the private debt/household debt bubble bursts. and or the uk economy comes to a standstill. /// London has driven out the real wealth creators - https://www.youtube.com/watch?v=Dyk1t4wEDAE - democracy by houses, bc renters have no rights, &! Money , banks, debt seems not to matter in status quo economics - Prof Steve Keen on Parasitic Banking Sector London School of Economics - https://youtu.be/Kh99jEE18KY GFC recovery is not recovery it is Japanese style stagnation! ex imigration¬!
UK  London  Margaret  Thatcher  private  debt  Consumer  household  mortgage  GFC  recovery  Brexit  discretionary  spending  disposable  income  reflate  reflation  ZIRP  NIRP  QE  Austerity  service  sector  working  poor  squeezed  middle  class  leverage  economic  history  living  standard  wage  growth  mobility  social  inequality  Gini  Coefficient  tax  evasion  avoidance  HMRC  payday  loan  trickle-down  Tories  nasty  party  Conservative  George  Osborne  David  Cameron  JAM  Theresa  May  Philip  Hammond  IMF  OECD  neoliberalism  crony  capitalism  Exploitation  corporatism  Consumerism  materialism  GDP  underinvestment  ROI  BOE  Mark  Carney  Steve  Keen  book 
march 2017 by asterisk2a
IFS: Growth in UK living standards worst in 60 years | Business | The Guardian
The Institute for Financial Studies is predicting that households will be almost 20% worse off by 2021 - IFS calculations show that average household incomes will be 18% lower in 2021-22 than could have been reasonably expected before the financial crisis in 2007-08 - “One of the biggest drivers of the rise in child poverty is policy choices, which is why it is essential that the prime minister and chancellor use the upcoming budget to put in place measures to stop this happening. An excellent start would be to ensure families can keep more of their earnings under the universal credit.”
IMF  UK  Austerity  OECD  living  standard  George  Osborne  David  Cameron  Philip  Hammond  Theresa  May  GFC  recovery  Tories  nasty  party  bank  bailout  Labour  Ed  Miliband  Jeremy  Corbyn  Conservative  secular  stagnation  disposable  income  discretionary  spending  household  debt  credit  card  mortgage  private  Consumer  Consumerism  wage  growth  inflation  mobility  inequality  gini  Coefficient  poverty  trap  working  poor  gig  economy  zero  hour  contract  Self-Employment  part-time  Precariat  squeezed  middle  class  technological  unemployment  ZIRP  NIRP  QE  trickle-down  neoliberalism  crony  Capitalism  corporatism  tax  evasion  avoidance  GDP  Corporate  profit  maximisation  globalisation  globalization  welfare  underinvestment  child  taxation  taxcredit  UC  DWP  JSA  social  fuel  Brexit  neoconservatism  neoconservatives  JAM 
march 2017 by asterisk2a
The Bank of England is in denial. Brexit shows people don't act rationally | Robert Skidelsky | Business | The Guardian
Our models of quantifiable risk fail when faced with radical uncertainty. // retail spending binge post brexit and in run-up. // The challenge is to develop macroeconomic models that can work in stormy conditions: models that incorporate radical uncertainty and therefore a high degree of unpredictability in human behaviour. [...] Keynes, for his part, didn’t think this way at all. He wanted an economics that would give full scope for judgment, enriched not only by mathematics and statistics, but also by ethics, philosophy, politics, and history – subjects dropped from contemporary economists’ training, leaving a mathematical and computational skeleton. To offer meaningful descriptions of the world, economists, he often said, must be well educated.
Brexit  UK  consumer  debt  household  credit  card  mortgage  BOE  Austerity  Consumerism  materialism  behaviour  Economics  Economy  rational  book  irrational  living  standard  savings  wage  growth  income  mobility  macroeconomic  forecast  Keynes  history 
february 2017 by asterisk2a
UK credit binge approaching levels not seen since 2008 crash | Business | The Guardian
//&! http://bit.ly/2j5VMET - Shoppers are still pulling out the plastic, but borrowing may become less choice and more necessity as budgets are squeezed //&! http://bit.ly/2hW63rg - BOE unable to put "irrational behavior" into models, ie credit binge. //&! wrong for BOE to compare levels to GDP! http://bit.ly/2iR2fGY - AUSTERITY UK KEPT AFLOAT BY CONSUMER CREDIT BINGE! - 2015 economy growth was 80% consumer! &! Carney Warning Jan 2017 - http://www.bbc.co.uk/news/business-38644963
credit  card  car  loan  consumer  debt  household  mortgage  Property  bubble  UK  discretionary  spending  disposable  income  wage  growth  inflation  BOE  payday  auto  recovery  GFC  economic  history  Consumerism  materialism  Brexit  irrational  behavior  debtoverhang  austerity  ZIRP  NIRP  QE 
january 2017 by asterisk2a
"Keiser Report" Episode 985 - YouTube
property prices have to come down. but that would put ppl in neg equity. gov keeping bubble alive. NOW gov buying up non-sold property w 2bn fund! - https://www.theguardian.com/business/2016/oct/06/government-could-buy-developers-unsold-homes-under-2bn-fund - A £2bn fund to boost housebuilding could be used by the government to offer guarantees to developers that it will step in to take on properties that they are unable to sell. - THIS IS A SMALL SCALE BAILOUT FOR FIRMS BUILDING -- SHITTY & OVERPRICED FLATS AND HOUSES!
Help  To  Save  Buy  Right  Whitehall  Westminster  property  bubble  UK  Brexit  housing  crisis  social  affordable  Theresa  May  David  Cameron  George  Osborne  Philip  Hammond  distortion  ZIRP  NIRP  QE  rentier  bailout  mortgage  BOE  subsidies  subsidizing  Corporate  welfare  crony  capitalism 
october 2016 by asterisk2a
Keiser Report: Gold & World’s Debt Problems (Summer Solutions series E940) - YouTube
deflationary trap/liquidity trap - orthodox monetary policy w austerity = stagnation. & west is exporting deflation. // if it is good for consumers ... break up banks. // hedging is BS ... you double the system you double the risk. [...] banks are now bigger! ... ban most derivatives, and reintroduce glass stegall // Black-Schoeles - there is no such think as risk free rate and no such thing as the past reflect the future. risk is not equally distributed. [...] VAR is flawed. //
deflation  deflationary  NIRP  currency  war  currency  debasement  ZIRP  QE  Helicopter  Money  secular  stagnation  western  world  Abenomics  BOE  BOJ  Fed  ECB  economic  history  Richard  Koo  liquidity  trap  debt  overhang  balance  sheet  recession  consumer  debt  household  debt  mortgage  mortgage  market  mortgage  rates  distortion  hunt  for  yield  credit  boom  credit  bubble  PBOC  China  reflate  reflation  squeezed  middle  class  wage  growth  income  growth  income  distribution  income  disparity  working  poor  Precariat  Brexit  GFC  too  big  to  jail  productive  investment  underinvestment  austerity  history  productivity  gap  financial  instruments  investment  banking  global  economy  globalisation  globalization  derivatives  output  gap  productivity  recovery  neoliberal  neoliberalism  Chicago  School  neoclassical  economics  deregulation  Wall  Street  speculative  bubble  property  bubble  Beton  Gold  Betongold  stagnation  aggregate  demand  aggregate  demand  short-fall  too  big  to  bail  too  big  to  fail  TBTF  complexity  systemic  risk  systemrelevant  systemicrisk  systemrelevanz  zombie  bank  zombie  banks  non-performing  loan  leverage  hedge  Glass-Steagall  Black-Scholes  Equation 
july 2016 by asterisk2a
Keiser Report: Your Special Brexit Coctail (E932) - YouTube
// housebuilding shares hammered. property funds close redemption possibility bc of too much redemption - bank run - funds have to sell some investments at a loss to repay investors. // what is weighting UK economy is too much debt to gdp (bank bailout), consumer credit (boe sounded alarm bells before brexit vote) and too much leverage. //&! Planet Ponzi Paperback (2012) by Mitch Feierstein //&! UK better out w problems of PIGS, Italy, and banking problem.
Brexit  ZIRP  NIRP  QE  asset  allocation  property  bubble  speculative  bubble  speculative  bubbles  mortgage  market  City  of  London  RBS  BOE  Mark  Carney  Help  to  Save  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  Right  to  Buy  distortion  George  Osborne  David  Cameron  Centrist  austerity  Housing  Crisis  Conservative  Party  book 
june 2016 by asterisk2a
British households doing less cleaning, DIY and gardening, says ONS
[80% of 2015 GDP growth was consumer related][home improvement is bell weather signal] [...] Over the past decade British waistlines have expanded with obesity reaching crisis levels. Yet the ONS estimates that, in the home at least, the number of calories consumed has been falling. [...] Another significant change is the value put on “transport services” provided by households. This week record car sales were reported, jumping to more than 500,000 in March alone, yet the number of miles driven by households – to go to work or the shops, collecting children from school, etc – remains significantly below the levels recorded a decade ago. [...] It attributed the fall to petrol costs and pressure on household budgets after the financial crash. [...] . Time spent on DIY is down the most – by 20% since 2005. ...
recovery  disposable  income  discretionary  spending  DIY  homeownership  UK  property  bubble  Housing  Crisis  Generation  Rent  squeezed  middle  class  consumer  debt  household  debt  credit  card  debt  car  loan  ZIRP  NIRP  QE  mortgage  market  distortion  credit  payment  working  poor  low  pay  low  income  job  insecurity  private  debt  consumer  spending 
april 2016 by asterisk2a
Budget 2016: Osborne's economic fitness regime - BBC News
[2015] 80% OF ECONOMY CONSUMER SPENDING! - The economy has enjoyed what Andrew Goodwin of Oxford Economics describes as a "sugar rush" -the equivalent of a big tax cut - or 'fiscal stimulus' - through lower petrol prices. The economy grew by 2.2% last year; 80% of that growth was down to consumer spending. "That [growth] strikes us as some distance below par given the tailwinds we have had," Mr Goodwin says. And after the sugar rush comes the sugar crash: growth is likely to be revised down in the years to come because of global economic weakness.
budget2016  budget2015  George  Osborne  policy  folly  policy  error  zombie  consumer  consumer  debt  household  debt  credit  card  debt  car  loan  student  debt  ZIRP  NIRP  QE  mortgage  rates  mortgage  market  property  bubble  Oil  price  commodity  prices  aggregate  demand  distortion  underinvestment  IFS  OBR  income  tax  receipts  HMRC  job  creation  Service  Sector  Jobs  working  poor  low  income  low  pay  squeezed  middle  class  Consumerism  Industrial 
march 2016 by asterisk2a
Ex-MPC member says rates will stay low until 2021 - BBC News
Blanchflower: Global economy "feels a little bit like 2008" Interest rates will likely fall further in Britain and remain at near record low levels until 2021, [...] Blanchflower described the backdrop to the committee's decision in March 2009 to cut rates to 0.5% as catastrophic. He said the MPC at the time had wished to avoid a death spiral. Britain was plunged into its deepest-ever recession in 2008 as confidence in banks collapsed and investment dried up. "We cut rates in November 2008 by 150 basis points (1.5%). It was clear that we should have cut by more but didn't because of the panic that it might have caused," he said. "It was absolutely clear that this (the financial crisis) was something we had not seen in a generation. We learned that the scale of the shock was enormous." [...] mortgage rates are 31% lower than before the crisis, while savers may have lost £106bn due to record low rates. //&! bbc.in/1YeqV87 &! bbc.in/1LGOxAf - central banks understated deflation pressure!
ZIRP  NIRP  QE  BOE  UK  global  economy  recovery  aggregate  demand  property  bubble  underinvestment  austerity  George  Osborne  speculative  bubbles  speculative  speculation  mortgage  market  macroprudential  policy  Mark  Carney  Help  to  Buy  Scheme  Help  to  Save  Right  to  Buy  Buy-to-Let  subprime  car  loan  credit  card  debt  zombie  consumer  zombie  corporations  zombie  banks  Richard  Koo  liquidity  trap  secular  stagnation  economic  history  GFC  household  debt  private  debt  consumer  debt  David  Blanchflower  Danny  Blanchflower  financial  repression  hunt  for  yield  asset  allocation  distortion  Super  Cycle  junk  bond  Gini  coefficient  deflationary  deflation  Taper  QT  monetary  policy  fiscal  policy  Pact  Schuldenbremse  BIS  ECB  Fed  BOJ  credit  bubble  PBOC  hot-money 
march 2016 by asterisk2a
Keiser Report: Sovietization of capitalism (E723) - YouTube
BIS 100% of private debt and finance sector larger than 3.9% of economy bad ... and siphoning off talent from more productive fields of work. And finance favours lending to property and land (low productivity). [...] financial products (derivatives) do not help economy. is just a financial product, fee collection. rentier! rent-seeking behaviour! fees fees fees. (JP Morgan, 89% of profits, see interview) [...] QE reflated asset prices/share prices! // In the second half, Max interviews David Graeber about his new book, The Utopia of Rules: On Technology, Stupidity and the Secret Joys of Bureaucracy.
private  debt  consumer  debt  household  debt  BIS  Wall  Street  recovery  zombie  banks  car  loan  credit  card  debt  student  loan  debt  student  loan  Bubble  student  debt  economic  history  GFC  secular  stagnation  UK  City  of  London  USA  investment  banking  retail  banking  BOE  Fed  macroeconomic  policy  microeconomic  policy  property  speculative  bubbles  speculative  speculation  productivity  output  gap  austerity  George  Osborne  dogma  ideology  constituency  Party  Funding  vested  interest  interest  groups  mortgage  market  Housing  Crisis  Help  to  Buy  Scheme  Help  to  Save  Funding  for  Lending  Scheme  Right  to  Buy  Buy-to-Let  subsidies  subsidizing  derivatives  financial  product  rent-seeking  rentier  QE  ZIRP  NIRP  reflate  reflation  Mark  Carney  fiscal  policy  monetary  policy  Richard  Koo  book  David  Graeber  MervynKing 
march 2016 by asterisk2a
Mervyn King: new financial crisis is 'certain' without reform of banks | Business | The Guardian
The former Bank of England governor says in his new book that imbalances in the global economy makes a crash inevitable [...] GFC was the fault of the financial system, not individual greedy bankers, in his new book, The End Of Alchemy: Money, Banking And The Future Of The Global Economy [...] “Without reform of the financial system, another crisis is certain, and the failure ... to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later,” Lord King wrote. [...] global central banks were caught in a “prisoner’s dilemma” - unable to raise interest rates for fear of stifling the economic recovery, the newspaper reported. [... blame] broken financial system. [...] failure of a system, and the ideas that underpinned it, [...] “Only a fundamental rethink of how we, as a society, organise our system of money and banking will prevent a repetition //&! dailym.ai/21tPG5y
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february 2016 by asterisk2a
This Letting Agent Admits The Housing Shortage Is Good News For Landlords - BuzzFeed News
[ Lord Adair Turner book & Richard Koo; banks tend 2 lend 2 property & land rather than productivity/businesses. risk averse, if the family cant pay the mortgage any more, than at least u have not lost all the money! less risky! Its also partly rentier behaviour of banks. // also BOE has to be concerned about future disposable income; rent & utilities eating up 50%-75% of income thus less for consumption! ] “Landlords’ balance sheets are looking healthier than at any point since 2014, and property investors are looking at an excellent rate of return from their portfolios.” Gill warned that changes to stamp duty announced in chancellor George Osborne’s Autumn Statement and due to take effect on 1 April – people selling buy-to-let investments will pay an extra 3% – were bad news for landlords. But overall, the “consistent and developing lack of housing for across all tenures, for a spiralling population” meant the level of demand for rental properties would not reduce, he said.
property  bubble  speculative  bubbles  asset  bubble  asset  allocation  macroprudential  policy  Generationengerechtigkeit  generation  rent  Housing  Crisis  social  affordable  distortion  ZIRP  NIRP  QE  aggregate  demand  Right  to  Buy  Buy-to-Let  Help  to  Buy  Scheme  Help  to  Save  policy  folly  policy  error  consumer  debt  household  debt  budget  deficit  recovery  mortgage  market  credit  bubble  GFC  bank  bailout  BOE  zombie  banks  rentier  rent-seeking  Richard  Koo  underinvestment  productive  investment  infrastructure  investment  zombie  consumer  industrial  policy  economic  history  Mark  Carney  financial  repression  behavioral  finance  behavioral  economics  herding  herd  hunt  for  yield  leverage  margin  trading  equity  bubble  Gini  coefficient  disposable  income  discretionary  spending  VAR  CDO  CDS  risk  aversion  squeezed  middle  class  secular  stagnation  inequality  UK  generational  contract  lost  generation  constituency  Tories  Conservative  Party  nasty  David  Cameron  George  Osborne  general  election  2015  general  election  2020  fiscal  policy  austerity  monetary  policy  liquidity  trap 
february 2016 by asterisk2a
What Really Caused the Crisis and What to Do About It - YouTube
"There are not perfect markets, and there is no perfect planner. [...] we will never arrive at perfect solutions. [...] market will never allocate perfectly ... [...] market will always tend to lend to property and land, and less into productive means (businesses = risk of 100 loss, land or property ... you have a loss when you sell it. << China, UK ) [...] not all credit is good credit. [...] need for macroprudential policy to dampen bubbles bc rate hikes could dampen normal non-speculative area of economy. ie loan to value limits [...] interest rate setting is blunt hammer that people though is the magic wand along the line of self-regulation, free market, neoliberalism and trickle-down [...] GFC can be traced back to the 60-70's - macroecon + micro with absurd assumptions (ie rational expectations, equilibriums, no bubbles) & math & pure theoretical base (no empirical analysis ie of what banks really do ie greed) = makes job of economist as policy advisor real easy.
bank  crisis  JohnMaynardKeynes  keynes  Keynesianism  book  Richard  Koo  aggregate  demand  austerity  liquidity  trap  deleveraging  balance  sheet  recession  debtoverhang  GFC  recovery  secular  stagnation  western  world  dogma  ideology  underinvestment  productive  investment  infrastructure  investment  monetary  policy  monetary  theory  trickle-down  economics  neoliberalism  neoliberal  budget  deficit  economic  history  credit  bubble  output  gap  productivity  inflation  targeting  nominal  GDP  targeting  asset  allocation  economics  investment  banking  zombie  banks  retail  banking  financial  product  CDS  CDO  hunt  for  yield  VAR  risk  aversion  deflationary  deflation  ZIRP  NIRP  QE  debt  monetisation  debt  monetization  Glass-Steagall  self-regulation  regulators  regulation  leverage  margin  trading  property  bubble  arbitrage  speculative  bubbles  asset  bubble  UK  USA  Europe  ECB  Fed  BOE  zombie  consumer  squeezed  middle  class  zombie  corporations  NPL  junk  bond  realestate  macroprudential  policy  mortgage  market  equilibrium  disequilibrium  Economist  economists  Adair  Turner  hayek 
february 2016 by asterisk2a
Help-to-buy loan scheme nets Treasury £213m in paper profit | Money | The Guardian
[ gov is not co-owner of private property! Make away with Nurse Bursaries and other gov support for education. But support the property price! by keeping supply always lower than demand. and use policy to increase demand w subsidies! where to put their savings! & subsidy for builders ] Rising house prices across much of England mean a government scheme to help buyers of newbuild property may have made more than £200m for the Treasury in its first two-and-a-half years. The help-to-buy equity loan scheme gives buyers an interest-free loan for five years in return for a percentage stake in their property. When the home is sold, the buyer returns the same percentage of the sale price, meaning that any fall or rise in house prices affects the return. Analysis by property firm Hometrack and shared with the Guardian suggests that a surge in house prices in some areas means the total value of homes bought through the scheme since its launch in April 2013 has increased by more than £1bn.
property  bubble  UK  speculative  bubbles  Housing  Crisis  affordable  social  Help  to  Buy  Scheme  Right  to  Buy  Buy-to-Let  Help  to  Save  budget  deficit  austerity  constituency  Party  Funding  babyboomers  BOE  macroprudential  policy  mortgage  market  ZIRP  NIRP  QE  hunt  for  yield  distortion  financial  repression  household  debt  consumer  debt  credit  card  debt  Generationengerechtigkeit  generation  rent  fairness  asset  bubble  asset  allocation  NPL  subprime  Payday  Loans  car  loan  student  debt  student  loan  debt  student  loan  Tories  fiscal  policy  monetary  policy  policy  error  policy  folly  Conservative  Party  nasty  short-termism  voter  turnout  disenfranchise  disenfranchised  David  Cameron  George  Osborne  underinvestment  infrastructure  investment  productive  investment  recovery  Richard  Koo  balance  sheet  recession  deleveraging  debtoverhang  zombie  consumer  zombie  banks  zombie  corporations  secular  stagnation  Privatisation  trickle-down  economics  dogma  ideology  GFC  bank  bailout  subsidies  subsidizing  corporate  welfare 
february 2016 by asterisk2a
Beware the Minuses of Negative Interest Rates
Whether sub-zero interest rates actually work is open to debate, however. So says Richard Koo, the chief economist of the Nomura Research Institute. “In my view,” he writes, “the adoption of negative interest rates is an act of desperation born out of despair over the inability of quantitative easing and inflation targeting to produce the desired results.” The failure of the BOJ and the ECB to meet their inflation and growth goals is shared by the Federal Reserve and the Bank of England. None of these central banks understand that their textbook solutions don’t fit the real economy, Koo asserts. [...] And on a more practical level, why corporations sit on record hoards of cash (taxes aside). [<< macro prudential policy ] //&! “When no one is borrowing money, monetary policy is largely useless.” [...] Keynes was right and (Milton) Freidman was wrong. - bit.ly/1Kl07Ri & There is no Confidence Fairy //&! fam.ag/1ogOOiM & bit.ly/1LpJL4W & bit.ly/1VgSjAB & bit.ly/214Icm3 & bit.ly/1Kl228n
secular  stagnation  emerging  middle  class  demographic  bubble  ageing  population  western  world  ZIRP  NIRP  QE  distortion  liquidity  trap  New  Normal  financial  repression  GFC  economic  history  Richard  Koo  consumer  debt  squeezed  middle  class  household  debt  credit  card  debt  car  loan  business  confidence  consumer  confidence  student  loan  debt  student  loan  Super  Cycle  debt  servitude  mortgage  market  asset  bubble  speculative  bubbles  hunt  for  yield  hot-money  equity  bubble  bond  bubble  property  bubble  credit  bubble  BRIC  China  student  debt  disposable  income  discretionary  spending  Frontier  Markets  emerging  market  UK  USA  Europe  Japan  Abenomics  Niall  Ferguson  Paul  Krugman  Joseph  Stiglitz  Gini  coefficient  inequality  income  inequality  income  distribution  income  mobility  wage  stagnation  income  growth  tax  evasion  tax  avoidance  Wall  Street  profit  maximisation  shareholder  value  underinvestment  austerity  productivity  output  gap  public  investment  productive  investment  infrastructure  investment  business  investment  STEM  R&D  competitiveness  Robert  Reich  balance  sheet  recession  deleveraging  debtoverhang  zombie  banks  zombie  corporations  zombie  consumer  macroprudential  policy  miltonfriedman  JohnMaynardKeynes  keynes  Keynesianism  Fiscal  Pact  policy  monetary  policy  Schuldenbremse  unconventional  monetary  policy  QT  Taper  money  supply  money  ve 
february 2016 by asterisk2a
Housing: Corbyn and Cameron clash over 'right-to-buy' - BBC News
[ micro/macro econ policy folly / error to promote home ownership. the only asset of UK households hold ... has to be kept afloat! by any means necessary. + Help to Buy ] The way the government intends to pay for its plans to allow social tenants in England to buy their homes is "extremely questionable", MPs say. The Commons Communities Committee criticised the funding model for the right-to-buy scheme, which will see housing associations reimbursed for selling homes to tenants at discounts. [ AND WITH THE MONEY THEY WANT TO BUILT STARTER HOMES FOR THE 30-20% of UK HOUSEHOLDS THAT CAN AFFORD A DOWN PAYMENT OF A 250-400k HOME. ] &! bit.ly/1hpXShr - PM will promise to tear up planning rules in effort to encourage developers to build more housing for first-time buyers //&! Buy to Rent w its tax breaks is a subsidy for privileged! & MPs say it should be paid for directly rather than via council house sales. Ministers say it will help create a million new homeowners by 2020.
Right  to  Buy  property  bubble  asset  allocation  household  debt  consumer  debt  credit  card  debt  car  loan  mortgage  market  affordable  housing  social  housing  Starter  Home  Crisis  David  Cameron  Tories  nasty  party  Conservative  short-termism  constituency  Funding  general  election  2020  general  election  2015  election  campaign  promises  Manifesto  generation  rent  Generationengerechtigkeit  speculative  bubbles  aggregate  demand  Supply  and  and  Supply  macroprudential  policy  Buy  to  subsidies  subsidizing  Help  to  Buy  Scheme  Privatisation 
february 2016 by asterisk2a
What's holding back the world economy? | Business | The Guardian
[ continued financialisation of economy / faustian pact ] QE and low interest rates have disproportionately created wealth in the financial sector and inflated asset bubbles. It has done little for the real economy. The rules of the market need to be rewritten [...] dominant policies during the post-crisis period – fiscal retrenchment and quantitative easing (QE) by major central banks – have offered little support to stimulate household consumption, investment, and growth. On the contrary, they have tended to make matters worse. In the US, quantitative easing did not boost consumption and investment partly because most of the additional liquidity returned to central banks’ coffers in the form of excess reserves. [...] private investment did not grow [...] [ QE supported only financial sector and zombie banks and corporations, little to nothing went into the real economy for investment in western world ] [ which leads us to say we are still in a banking crisis per se ]
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february 2016 by asterisk2a
If we want to solve the housing crisis, we must answer these three questions | Paul Mason | Opinion | The Guardian
[ prices have to stay afloat by any means, or conservatives are out for the next decade or two as they have done nothing to balance two sides. they continued to inflate the bubble further. proclaiming uk as home owning nation. ] If you then dramatically slash the supply of social housing, through right-to-buy and reduced council building, you create a permanent imbalance that turns home ownership into a form of asset investment. What you get then is boom and bust. And the only way to cure the bust is for the government to greet every collapse in market prices with effective state subsidies for home ownership. This, in turn, induces a speculative frenzy of one way bets – on development, on buy to let, on off-plan investment buying from abroad.
Housing  Crisis  social  affordable  property  bubble  Starter  Home  speculative  bubbles  distortion  macroprudential  policy  BOE  Buy  to  Rent  Help  to  Buy  Scheme  policy  error  policy  folly  subsidies  subsidizing  short-termism  opportunist  Opportunism  Career  Politicians  George  Osborne  David  Cameron  Mark  Carney  mortgage  market 
february 2016 by asterisk2a
As growth falters, Osborne hopes Mark Carney can keep a lid on interest rates | Business | The Guardian
The chancellor faces lower GDP and lower tax receipts as a result. So it’s vital that consumers’ desire to keep spending isn’t hit by a nasty shock from the Bank [ // Confidence Fairy // ] The Bank of England has downgraded its forecasts for the UK’s GDP growth and the outlook for wages, most likely robbing the exchequer of vital income tax receipts. And without the funds to maintain pensions and health service spending, his critics will gleefully play back the speech from last November during which he declared that Britain was on the road to becoming “the most prosperous and secure of all the major nations of the world”. [...] Yet his words ring hollow when so many of the post-crash problems are still with us, from the burden of high private and public debts to Europe’s rapidly ageing population, which encourage saving over investment, and a reluctance from government and big business to boost capital spending.
George  Osborne  secular  stagnation  2016  2015  Mark  Carney  BOE  consumer  debt  household  debt  mortgage  market  subprime  credit  card  debt  zombie  consumer  UK  GDP  output  gap  productivity  job  creation  Service  Sector  Jobs  recovery  economic  history  austerity  underinvestment  business  investment  public  investment  fiscal  policy  monetary  policy  Richard  Koo  Paul  Krugman  David  Cameron  nasty  party  Conservative  Tories  short-termism  credit  bubble  debtoverhang  debt  servitude  disposable  income  discretionary  spending  marginal  propensity  to  consume  Funding  1%  financial  repression  New  Normal  constituency  babyboomers  oligarchy  Gini  coefficient  income  distribution  income  inequality  plutocracy  Super  Rich  tax  evasion  tax  avoidance  corporate  welfare  subsidies  subsidizing  income  growth  low  pay  low  income  wage  growth  economic  growth  precarious  work  Precariat  tax  credit  tax  free  income  corporate  tax  rate  minimum  wage  budget2015  Food  Bank  foreign  direct  investment  productive  investment  infrastructure  investment  demographic  bubble  western  world  USA  European  Union  ageing  population  CapEx  Capital  Expenditure  zombie  corporations  zombie  banks 
february 2016 by asterisk2a
More Evidence Supporting the House of Debt | House of Debt
Many have argued that we overstate the importance of housing and household debt in explaining the Great Recession and weak recovery. They point to the banking crisis, policy uncertainty, or excessive regulation as equally or even more important. The data released today by the BEA show pretty clearly that the arguments we make in House of Debt remain relevant for thinking about economic weakness today. In our view, the explanation we provide is the most consistent with the striking difference in consumption across states. // From Comments: Without real median income rising you can’t grow in an economy based on debt expansion
secular  stagnation  consumer  debt  mortgage  market  household  debt  USA  UK  recovery  GFC  credit  card  debt  debt  servitude  debtoverhang  Richard  Koo  student  loan  debt  Super  Cycle  student  debt  debt  monetisation  debt  monetization  private  debt  fiscal  policy  monetary  policy  book  marginal  propensity  to  consume  consumerist  consumerism  zombie  consumer  discretionary  spending  disposable  income  negative  equity  job  creation  precarious  work  Precariat  low  pay  low  income  Service  Sector  Jobs  job-creation  squeezed  middle  class  Elizabeth  Warren  income  distribution  inequality  Gini  coefficient  income  mobility  social  mobility  American  Dream  post-racial  America  Joseph  Stiglitz  Thomas  Piketty  Paul  Krugman  part-time  Zero  Hour  Contract  Contractor  income  growth  income  inequality  economic  history  Super  Rich  1%  austerity  oligarchy  plutocracy  fiscal  stimulus  budget  deficit  corporate  welfare  tax  avoidance  tax  evasion  corporate  tax  rate  subsidies  subsidizing  welfare  state  social  safety  net  western  world  trickle-down  economics  neoliberalism  neoliberal  Chicago  School  credit  bubble  liquidity  trap  balance  sheet  recession  deleveraging 
february 2016 by asterisk2a
Christine Lagarde: Housing is key issue for security of UK economy - BBC News
The UK's recent growth, employment progress and deficit reduction have been "strong", the International Monetary Fund (IMF) has said. Underlying economic vulnerabilities, including the supply and demand for housing, have been addressed and steady growth looks set to continue, it said. The IMF's Christine Lagarde said there were still some risks.
UK  Housing  Crisis  property  bubble  generation  rent  speculative  bubbles  Buy  to  macroprudential  policy  fiscal  policy  planning  law  monetary  policy  mortgage  market  austerity  budget  deficit  neoliberalism  IMF  OECD  neoliberal  trickle-down  economics  economic  history  ChristineLagarde  Privatisation  affordable  social  discretionary  spending  disposable  income  consumer  debt  household  debt  credit  card  debt  car  loan  secular  stagnation  wage  stagnation  squeezed  middle  class  Precariat  working  poor  job  creation  Service  Sector  Jobs  low  pay  minimum  wage  low  income  Zero  Hour  Contract  part-time  Contractor  recovery  productivity  output  gap  credit  bubble  debt  servitude  debtoverhang  liquidity  trap  Richard  Koo 
february 2016 by asterisk2a
Cameron: Labour doesn’t believe in home ownership – video | Society | The Guardian
home ownership is the only wealth item in privates balance sheet. but as we know from history, dont base ur wealth on one asset. particular houses. houses/flats are there to be lived in. & maybe move out & into a new one, moving city for new or better job. property should not be prioritised as singular wealth storage // USA promoted home ownership // Tories policy is helping people save, and buy, keeping the house prices going up an up and up. // &! Complete Privatisation of housing market; Ministers want to get rid of social housing, former civil service chief to say. Lord Kerslake to say housing bill will force councils to sell off more than 100,000 homes to subsidise right-to-buy discounts - bit.ly/1Qr1FKr - The former head of the civil service will accuse government ministers this week of trying to phase out social housing altogether in favour of a new generation of “starter” homes that will be unaffordable for people on low incomes. //&! bit.ly/20lvGOp Privatisation a disaster
nasty  party  policy  folly  policy  error  Makers  generation  rent  Tories  Conservative  mortgage  market  property  bubble  Housing  Crisis  household  debt  consumer  debt  credit  card  debt  zombie  consumer  subprime  cost  of  living  standard  of  living  Help  to  Buy  Scheme  Right  to  Buy  Buy-to-Let  Help-to-Save  macroprudential  policy  wealth  distribution  wealth  management  austerity  neoliberalism  neoliberal  social  affordable  Privatisation  budget  deficit  Council  Public  Services  Services  David  Cameron  George  Osborne  budget2015 
january 2016 by asterisk2a
Why is the pound falling so sharply? - BBC News
Weak economic data is casting doubt on the future performance of the UK economy, with inflation persistently well below the Bank of England's 2% target and earnings growth slowing down from a six-year high. Earlier this month, figures for November showed that UK industrial output had suffered its sharpest decline since 2013. Looking further ahead, investors are worried about the outcome of a referendum on the UK's continued membership of the EU. As Andy Scott of foreign exchange services firm HiFX put it: "Concerns over the UK economy and the risk of a Brexit look likely to continue to haunt sterling." Traders are also generally more risk-averse in the light of the global turmoil caused by Chinese market problems and falling oil prices, which makes them reluctant to buck sterling's downward trend.
UK  BOE  Taper  ZIRP  NIRP  QE  liquidity  trap  debtoverhang  consumer  debt  household  debt  credit  card  debt  mortgage  market  industrial  policy  austerity  monetary  policy  fiscal  policy  Richard  Koo  zombie  consumer  zombie  banks  zombie  corporations  monetary  transmission  mechanism  monetary  theory  unconventional  monetary  policy  Mark  Carney  MPC  energy  policy  energy  price  competitive  competitiveness  STEM  underinvestment  tax  evasion  tax  avoidance  corporate  welfare  corporate  tax  rate  subsidies  subsidizing  secular  stagnation  immigration  migration  job  creation  low  income  Service  Sector  Jobs  recovery  GFC  bank  bailout  budget  deficit  London  Scottish  Independence  Scottish  referendum  Devolution  Brexit  uncertainty  unknown  unkown  global  economy  credit  bubble  debt  servitude  Super  Cycle  student  loan  debt  student  debt  baddebt  NPL  private  debt  economic  history  Niall  Ferguson  democracy  Super  Rich  1%  oligarchy  plutocracy  Gini  coefficient  inequality  social  mobility  income  mobility  Precariat  Zero  Hour  Contract  precarious  work  Contractor  low  pay  minimum  wage  George  Osborne  Tories  dogma  ideology  Conservative  Party  neoliberal 
january 2016 by asterisk2a
Carney: No need for interest rate rises now - BBC News
Carney said that collapsing oil prices and an "unforgiving" global environment meant that tighter monetary policy was not yet necessary. [...] He pointed out that the Fed's rate rise had only brought the US interest rate to the same "lofty level" as the Bank of England's. The Governor said that three factors would be the strongest guide to when interest rates might rise. First, that economic growth in the UK would be higher than the average trend. He said that growth at an average quarterly rate of 0.5% in 2015 had "disappointed". Second, that wage growth strengthens and productivity improves. And, third, that core inflation starts to approach the target rate of 2%. //&! Rate rise pause till early 2017? - bbc.in/1T1Qrge - [ global risks are building, global imbalances, faultlines. ] There's a frying pan - the global growth slowdown - and a fire - high levels of indebtedness - out there. &! bbc.in/1S5N7ks
Fed  BOE  2016  Taper  UK  USA  monetary  policy  Mark  Carney  Fed  mandate  productivity  output  gap  inflation  expectation  inflation  targeting  nominal  GDP  targeting  deflationary  deflation  Oil  price  commodity  prices  wage  inflation  GDP  secular  stagnation  economic  history  austerity  fiscal  policy  property  bubble  consumer  debt  household  debt  credit  card  debt  mortgage  market  ZIRP  NIRP  QE  private  debt  corporate  debt  Europe  ECB  China  credit  bubble  2015  global  economy  BRIC  OPEC  aggregate  demand  Richard  Koo  overcapacity  Supply  and  and  Supply  liquidity  trap  monetary  transmission  mechanism  monetary  stimulus  monetary  theory  unconventional  monetary  policy  debt  monetisation  debt  monetization  zombie  consumer  zombie  corporations  zombie  banks  debtoverhang  balance  sheet  recession  deleveraging  margin  trading  speculative  bubbles  equity  bubble  Super  Cycle  debt  servitude  leverage  George  Osborne  dogma  ideology  neoliberalism  neoliberal  faultlines  global  imbalances  distortion  emerging  middle  class  emerging  market  Frontier  Markets  sovereign  debt  crisis  unintended  consequences  unknown  unkown  QT  financial  repression  New  Normal 
january 2016 by asterisk2a
Meet the Renegades Steve Keen - YouTube
[ chicago school of economics ] 17:25 - private debt // demand will never be again so starong as before GFC. growth of debt/credit is normal. but without growth and high debt is cancer. + current account deficit/trade deficit = means things for UK can not go in indefinitely. austerity will run its course, will not make things better. next is property bubble! and NPL as normalisation to 2% nears // China margin trading & leverage via credit bubble. property bubble. // 24:20 - there is still room to grow household/private debt. Tories treat gov budget like a household rather than a bank! UK will stumble along at lower rate than America. Will not get better! Just rearranging deck chairs of a painfully slowly sinking ship.
secular  stagnation  private  debt  household  debt  consumer  debt  credit  card  debt  UK  USA  Japan  economic  history  car  loan  GFC  credit  bubble  debt  servitude  consumer  confidence  junk  bond  NPL  ZIRP  NIRP  QE  monetary  policy  fiscal  policy  Richard  Koo  student  debt  student  loan  debt  debtoverhang  deleveraging  balance  sheet  recession  mortgage  market  trade  deficit  current  account  deficit  austerity  dogma  neoclassical  economics  book  ideology  margin  trading  leverage  western  world  Hegemony  China  Super  Cycle 
january 2016 by asterisk2a
BBC Documentary - The Money Trap - How Banks Control the World Through Debt - YouTube
most profitable credit card debt customers are those making just the minimum payment. ... a credit card being a statement of status! retaining customers by upgrading them regularly w higher limits, new colors, new perks (they will never use). // unsecured lending - DEFINITION of 'Unsecured Loan' A loan that is issued and supported only by the borrower's creditworthiness, rather than by a type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan. // revolving debt // the higher your credit limit, the more you are likely to spend. // half of his income to just serve credit card fees and interest charges (no payments towards paying down) debt ... // banks lend irresponsibly bc they know they can get away with it, or somebody else will do it! because there is not regulation. no bank oversight. //&! The Truth about Payday Loans :Young, British and Broke - youtu.be/-yWxTvffbuE //&! Gambling/Betting Shops on Highstreet.
retail  banking  investment  banking  CDO  CDS  subprime  credit  card  debt  credit  card  financial  literacy  household  debt  mortgage  market  Payday  Loans  exploitation  debt  servitude  student  loan  debt  Bubble  property  ethics  moral  beliefs  revolving  debt  consumer  debt  debtoverhang  debt  Super  Cycle  student  debt  private  debt  status  symbol  instant  gratification  status  anxiety  socioeconomic  status  zombie  consumer  consumerist  consumerism  Protection  overdraft  materialism  crony  capitalism  capitalism  NPL  NINJA  Wall  Street  profit  maximisation  shareholder  value  bonuses  bonus  financial  incentive  incentive  creditrating  credit  creditrisk  credit  score  self-regulation  Bank  Oversight  financial  instruments  derivatives 
january 2016 by asterisk2a
Why are we looking on helplessly as markets crash all over the world? | Will Hutton | Opinion | The Guardian
[ so much debt in the system, a rise in interest can not be served as is ] The imminent collapse of the Chinese Ponzi-scheme economy shows that we need to bring control to the international economy. [...] There has always been a tension at the heart of capitalism. Although it is the best wealth-creating mechanism we’ve made, it can’t be left to its own devices. Its self-regulating properties, contrary to the efforts of generations of economists trying to prove otherwise, are weak. [...] Profits as a share of national income in Britain and the US touch all-time highs; wages touch an all-time low as the power of organised labour diminishes and the gig economy of short-term contracts takes hold. The excesses of the rich, digging underground basements to house swimming pools, cinemas and lavish gyms, sit alongside the travails of the new middle-class poor. These are no longer able to secure themselves decent pensions and their gig-economy children defer starting families ...
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january 2016 by asterisk2a
Börse: Warum Schwellenländer für die Kurskrise sorgen - Kolumne - SPIEGEL ONLINE
Chronisch überschüssige Leistungsbilanz [ & Over capacity for less/stagnant demand ... + biggest credit bubble (china) popped as the west can't afford more. QE and ZIRP has run it's way! ] [...] Der Grund, warum der deutsche Aktienindex weitaus mehr betroffen ist als andere europäische Indizes, liegt allein an der strukturellen Abhängigkeit der deutschen Industrie von Blasen in anderen Ländern. Anstatt auf bessere Stimmung zu hoffen, sind Anleger gut beraten, sich über den weiteren Verlauf der Schwellenländerkrise Gedanken zu machen. [...] [ Fed taper makes things more difficult to serve debt ] [...] Langfristig sind es die Gewinne und nicht die Zinsen, die die Aktienpreise treiben. //&! China (Asia/BRIC/Frontier Market) Corporate Bond Yields up - bit.ly/1Sme7fV & NPL probably too. //&! If property is biggest item of household wealth in a property bubble (UK, China, ... USA) - bit.ly/1Zpiy8M
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january 2016 by asterisk2a
Under-40s worse off as result of state pension changes, data shows | Money | The Guardian
[ how do you save up when you can afford housing (nor even a mortgage, have credit cards (drinks and presents), and student loan. all the while tories help to prop-up the property bubble, the only wealth uk households actually have! ] Most people now in their teens, 20s and 30s will be worse off as a result of changes to the state pension system, while millions of older people will gain, according to the government’s own figures. The data will fuel concern that millions of younger people are suffering from the effects of what has been dubbed “intergenerational unfairness”, partly caused by the government targeting money and resources at the older generation. DWP issued the data to back up its assertion that the introduction of the new flat-rate state pension in April “will make millions of people better off” – but the figures also provide stark confirmation that younger people will be losers from the changes.
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january 2016 by asterisk2a
Why The Crash of 2016 Will Happen... - YouTube
China's Credit Bubble popped. &! Could China Trigger the Crash of 2016? - youtu.be/JRw8JgP-L0A //&! IMF: "Age of America" Will End 2016: Steve Forbes on China - youtu.be/YxCxHM5Ax_k //&! Has The Crash of 2016 Now Begun? What Can & Should Be Done? - youtu.be/JwEDvXYVE_g - Richard Wolff, austerity failed what has been promised "business confidence." Smart money unloading started in 2015. "Silly China-bashing." China has capacity (over capacity) but western world has reached its credit limit! << youtu.be/L4J_n9pTdJQ codependent. //&! youtu.be/ORRPNO2XPDA - still too much debt, austerity flaws, no income growth to serve debt and not cut back on spending (private households), China exporting deflation.
book  Super  Rich  1%  plutocracy  corporate  state  corporate  media  Wall  Street  lobbyist  lobby  Lobbying  vested  interest  interest  groups  revolving  door  Career  Politicians  No  Representation  social  democracy  democracy  Wertegesellschaft  Wegwerfgesellschaft  squeezed  middle  class  neoliberalism  2016  neoliberal  working  poor  Precariat  wage  stagnation  secular  stagnation  western  world  corporate  scandal  tax  evasion  tax  avoidance  corruption  bribery  Greed  GFC  bank  bailout  austerity  fairness  Generationengerechtigkeit  tax  code  Rechtsruck  far-right  Rechtsextremismus  refugee  crisis  symptom  Xenophobia  Islamophobia  Gini  coefficient  inequality  income  mobility  social  mobility  poverty  trap  welfare  state  social  safety  net  USA  Hegemony  China  UK  Debt  Super  Cycle  post-racial  America  crony  capitalism  capitalism  shared  economic  interest  economic  damage  Europe  PIGS  sovereign  crisis  consumer  household  ZIRP  NIRP  QE  IMF  financial  repression  speculative  bubbles  property  bubble  New  Normal  fiscal  policy  monetary  policy  globalization  globalisation  flat  world  borderless  free  trade  debtoverhang  credit  card  car  loan  mortgage  market  oligarchy 
january 2016 by asterisk2a
Perfect Storm!? | Zero Hedge
And with debt now $57 trillion higher worldwide than in 2008, it’s not at all clear that another borrowing binge will be greeted with enthusiasm by the world’s bond markets, currency traders or entrepreneurs. [ market correction, no liquidity, stuck with position, this may be no correction, but correction back to fundamental grounds ] [...] And one thought will appear in all those minds: Why didn’t I load up on gold when I had the chance?
2015  2016  China  consumer  debt  Super  Cycle  household  debt  mortgage  market  property  bubble  ZIRP  NIRP  QE  debt  monetisation  debt  monetization  fiscal  policy  austerity  monetary  policy  credit  card  debt  car  loan  credit  card  debt  servitude  corporate  debt  sovereign  debt  crisis  debt  bubble  debtoverhang  balance  sheet  recession  economic  history  Taper  Fed  BOE  ECB  PBOC  output  gap  globalisation  globalization  borderless  secular  stagnation  western  world  OPEC  Oil  price  commodity  prices  flat  world  BRIC  leverage 
january 2016 by asterisk2a
Osborne warns of 'dangerous cocktail' of economic risks - BBC News
[ repeat phrases - "strong economy", "strong economy, strong NHS" ] The UK faces a "cocktail" of serious threats from a slowing global economy as 2016 begins, Chancellor George Osborne has warned. Speaking in Cardiff, Mr Osborne said this year is likely to be one of the toughest since the financial crisis. He told business leaders that far from "mission accomplished" on the economy, "2016 is the year of mission critical". His message is in stark contrast to the positive tone of his Autumn Statement, when he said the UK was "growing fast". [...] that the Autumn Statement had put in place a four-year plan to restore the UK's public finances, and make the economy more productive, with businesses more competitive so they could create jobs. [...] Mr Osborne told the Today programme the UK's economic recovery was not "a debt-fuelled recovery", citing the support of the governor of the Bank of England in his assessment. [ not public, but private household debt! ]
George  Osborne  Career  Politicians  PR  spin  doctor  budget2015  Tories  Conservative  Party  nasty  austerity  underinvestment  productive  investment  productivity  output  gap  job  creation  wage  growth  consumer  debt  household  debt  Positioning  energy  policy  competitiveness  renewable  energy  corporate  welfare  corporate  tax  rate  Generationengerechtigkeit  fairness  subsidies  subsidizing  NHS  Jeremy  Hunt  David  Cameron  general  election  2015  election  campaign  promises  Manifesto  constituency  babyboomers  Opportunism  opportunist  Oil  price  bank  bailout  fiscal  policy  monetary  policy  Housing  Crisis  affordable  generation  rent  property  bubble  NPL  mortgage  market  car  loan  credit  card  debt  budget  deficit  balance  sheet  current  account  deficit  trade  deficit  borderless  flat  world  globalisation  globalization  debt  servitude  debtoverhang  student  loan  debt  private  debt  sovereign  debt  corporate  debt  student  debt  student  loan  Maintenance  Grant  Education  Maintenance  Allowance  ZIRP  NIRP  QE  distortion  BOE  Buy-to-Let  Help  to  Buy  Scheme 
january 2016 by asterisk2a
Economy concerns as household debt rises to £40bn in latest figures | Business | The Guardian
Families are expected to run up £40bn of debt this year, sparking fears about Britain’s economic recovery. [...] (OBR) forecasts have found that households have moved from a surplus of £67bn in 2010, the year the coalition took power, to a £40bn deficit this year. Unsustainable borrowing is on course to near the levels reached in the run-up to the 2008 financial crash, according to Labour. Seema Malhotra, the shadow chief secretary to the Treasury, said: “George Osborne is relying on millions of British families going further into debt to hit his growth targets. [ as projected by economists, that household had to take up debt, shifting debt burden off the public balance sheet, when austerity plans were revealed together with LibDems, to meet growth targets/estimates, back then. same w decistions to increase student loans, convert grants into loan ie for nursing, remove allowances and grants. same w the green bank. shifting items off the balance sheet. and underinvestment. ]
economic  growth  austerity  trickle-down  economics  underinvestment  George  Osborne  nasty  party  Tories  Conservative  neoliberalism  neoliberal  budget  deficit  Student  Maintenance  Grant  Education  Maintenance  Allowance  debt  loan  debt  loan  Student  Bubble  generation  rent  Generationengerechtigkeit  fairness  policy  Liberal  Democrats  household  debt  consumer  debt  squeezed  middle  class  working  poor  credit  card  debt  credit  card  car  loan  Precariat  precarious  work  child  tax  credit  working  tax  credit  tax  credit  wage  stagnation  income  growth  inequality  Gini  coefficient  rat  race  status  anxiety  status  symbol  debt  servitude  debtoverhang  sovereign  debt  crisis  Super  Cycle  ZIRP  NIRP  mortgage  market  property  hunt  for  yield  QE  New  Normal  macroprudential  policy  macroeconomic  policy  microeconomic  policy  debt  monetisation  debt  monetization  debt  private  debt  Privatisation 
december 2015 by asterisk2a
The roof is being fixed but beware the house crashing beneath it | Business | The Guardian
Consumer spending is driving economic growth but household debt and the house price-income ratio is at a record high. Be afraid [...] It is worth recalling that when Osborne became chancellor five and a half years ago that he had two big objectives. The first was to repair the hole in the public finances, which is still very much a work in progress. The other was to shift the centre of gravity of the economy back towards making things for export. This remains a pipedream. [...] Despite the welcome pickup in business investment, the main driver of growth has been consumer spending, which has been boosted by low interest rates, the fall in inflation caused by lower oil prices, and a modest acceleration in earnings. [...] “not the ideal shape for the recovery” and it can say that again. The current recovery looks like all the previous recoveries. [...] “Fast-rising household debt is needed to maintain a reasonable rate of growth in consumers’ spending and GDP in a world of austerity ...
household  debt  consumer  debt  zombie  consumer  recovery  credit  card  debt  credit  card  materialism  status  anxiety  USA  UK  Super  Cycle  debtoverhang  mortgage  market  Housing  Crisis  debt  servitude  NPL  property  bubble  speculative  bubbles  ZIRP  NIRP  QE  BOE  Buy-to-Let  Help  to  Buy  Scheme  Right  to  Buy  student  loan  debt  debt  bubble  student  debt  private  debt  economic  growth  GFC  fiscal  policy  austerity  industrial  policy  underinvestment  productive  investment  competitive  competitiveness  George  Osborne  dogma  ideology  neoliberalism  neoliberal  David  Cameron  Tories  nasty  party  Conservative  economic  history  energy  policy  energy  price  STEM  Manufacturing  diversity  microeconomic  policy  macroeconomic  policy  Amber  Rudd  debt  monetisation  debt  monetization  secular  stagnation  disposable  income  discretionary  spending  squeezed  middle  class  working  poor  consumerist  consumerism  trickle-down  economics  status  symbol  market  affordable  social  budget2015  marginal  propensity  to  consume  Precariat  tax  credit 
december 2015 by asterisk2a
UK's most expensive city facing 'catastrophe' - BBC News
shortage of supply = unaffordable = nobody can afford to live there, work there, study there. or have to commute from out of town for 1 hour or more. // this is not only a problem in Oxford. NHS Grampian has problems of recruiting because unaffordable house prices and rents pushed up by Oil Industry and the lack of new housing. Same for teaching jobs. // all the while building companies make pumper profits and even skirt around the edges to lower the ratio of social and affordable housing they have to provide with each new big project. its in their interest, if prices were to fell, they would make less money. so they build not enough to keep up with demand at all. and not enough so each new builds profit rises because of risen demand and people willing to pay more for the same house or flat from previous year or two or three despite no real improvement in the build technically/energy efficiency wise/or architecture wise - modern, wide open, big windows. //
UK  Housing  Crisis  green  belt  Supply  and  Demand  Demand  and  Supply  property  bubble  speculative  bubbles  generation  rent  Generationengerechtigkeit  fairness  babyboomers  vested  interest  interest  groups  mortgage  market  shared  economic  interest  commuting  quality  of  life  standard  of  living  cost  of  living  city  living  disposable  income  discretionary  spending  underinvestment  productive  investment  NHS  Grampian  Public  Services  Social  Services  Tories  nasty  party  Conservative  distortion  ZIRP  NIRP  QE  hot-money  credit  bubble  China  capitalism  collusion  Policy  Makers  lobbyist  lobby  Lobbying  affordable  cost  of  entry  cost  center  cost  of  ownership  cost  of  Career  Politicians  No  Representation  democracy  interest  minority  folly  error  competitive  competitiveness  macroprudential  Buy  to  Help  to  Buy  Scheme  Right  to  Buy  fiscal  austerity  deprivation  urbanisation  urban  planning  monetary  unknown  unkown  unintended  consequences  general  election  2020  George  Osborne  David  Cameron  Toff  Privileged  Establishment  Entitlement  Millennials  generationy 
october 2015 by asterisk2a
Average monthly rent hits record high of £816, highlighting housing shortage | Money | The Guardian
Rents rose across most of England by averages of 6.3% and 8.5% in past year, say separate studies, but fell in the north-west, north-east and Wales [...] Housing charity Shelter said the figures “highlight the plight of an entire generation stuck in insecure and expensive private renting”. On Tuesday, official figures underlined the continuing difficulty of buying, as UK house prices surged to a record peak of £284,000 on average in August. According to the report from Your Move and Reeds Rains, rents rose to a “new all-time record” in September and are up a typical 6.3% on an annual basis. It found that rents are now almost a quarter (24%) higher than in January 2010, while the index of CPI inflation is just 14% higher over the same period. // bonuses and pay and profit for building companies are up as well. actively restricting demand to push up prices marginally (compounding over time). nearly all property sells before even the first brick is put down for the development!]
generation  rent  Generationengerechtigkeit  fairness  mortgage  market  social  housing  affordable  housing  discretionary  spending  disposable  income  Supply  and  Demand  Demand  and  Supply  housing  market  Crisis  profiteer  Wall  Street  crony  capitalism  capitalism  shareholder  value  profit  maximisation  CEO  pay  bonuses  standard  of  living  quality  of  life  speculative  bubbles  ZIRP  NIRP  QE  constituency  nasty  party  Tories  Conservative  Policy  Makers  neoliberalism  neoliberal  Buy-to-Let  Help  to  Buy  Scheme  Right  to  Buy 
october 2015 by asterisk2a
SNP conference: John Swinney to give Scottish councils business rate powers - BBC News
[ so who is actually going to pay tax? to repair roads, winder service, replace street lights, clean the city, police, NHS, ... to fund councils budgets that are already deep in the red and are cut further over the next 5 years. Public libraries, pools, social care, etc etc. dismantling britian. framing it as job creator. as if tax cuts create demand! lol. its a race to the bottom. ] Colin Borland, the Federation of Small Businesses' (FSB) head of external affairs in Scotland, said it was good news that cutting the cost of doing business was "at the heart of the deputy first minister's message". He said: "If used appropriately, these powers could give local economies a welcome boost and it will be interesting to see how many hard-pressed councils will be able to take advantage of them." UK Chancellor George Osborne has promised local authorities in England more flexibility over business rates by 2020.
corporate  tax  rate  neoliberalism  neoliberal  Devolution  George  Osborne  SNP  Scotland  England  Wales  Northern  Ireland  corporate  welfare  subsidies  subsidizing  austerity  Public  Services  Social  Services  budget2015  budget  deficit  elderly  care  Big  Society  deprivation  community  Wall  Street  profit  maximisation  shareholder  value  trickle-down  economics  economic  history  UK  fiscal  policy  monetary  policy  Richard  Koo  debtoverhang  household  debt  private  debt  consumer  debt  tax  code  tax  free  income  aggregate  demand  Supply  and  and  Supply  credit  card  debt  credit  card  mortgage  market  Super  Cycle  debt  servitude  PR  spin  doctor  Positioning  Tories  Conservative  Party  dogma  ideology  nasty  reframing  framing  academia  academics  Niall  Ferguson  secular  stagnation  western  world  fairness  GFC  Generationengerechtigkeit  babyboomers  constituency  vested  interest  interest  groups  lobbyist  lobby  Lobbying  Makers 
october 2015 by asterisk2a
UK interest rates held at 0.5% after 8-1 Bank vote - BBC News
The central bank said cost pressures in the UK's labour market were rising too slowly for inflation to return to the Bank's 2% target, and that inflation would stay below 1% until spring 2016. Inflation has been hovering around 0% for the past few months, but the Bank had indicated that robust domestic growth and the fading effect of last year's big oil price falls would cause it to bounce back towards 2% next year. Although UK consumer spending had remained resilient, bolstered by wage growth, attempts to reduce the UK budget deficit had restrained activity and global growth had been below average.
UK  BOE  MPC  austerity  wage  growth  wage  stagnation  income  distribution  disposable  income  income  growth  low  income  job  creation  productivity  output  gap  recovery  fiscal  policy  inflation  expectation  inflation  targeting  ZIRP  NIRP  QE  Taper  monetary  policy  2015  consumer  debt  household  debt  mortgage  market  car  loan  Student  Bubble  credit  card  debt  zombie  consumer  Richard  Koo  debtoverhang  debt  servitude  Super  Cycle  balance  sheet  recession  leverage  deleveraging  margin  trading  speculative  bubbles  asset  reflate  reflation  property  secular  stagnation  Niall  Ferguson  global  economy  USA  dogma  ideology  neoliberalism  neoliberal  George  Osborne  Tories  Conservative  Party  constituency  babyboomers  bank  bailout  banking  crisis  bank  crisis  Millennials  generationy 
october 2015 by asterisk2a
Perhaps austerity didn't choke off UK recovery - BBC News
But, as I mentioned, the disclosure that we were a bit richer in the last parliament than we thought is not all fabulous news for the chancellor. He and his Treasury colleagues should probably be anxious that the faster growth did not translate into higher tax revenues. In case you need reminding, George Osborne singularly failed to hit the deficit reduction targets he set himself. But the explanation can no longer be that the economy flatlined, because that's not what happened. So if the higher-than-thought growth in the last parliament left the gap between government revenues and expenditures tens of billions of pounds greater than George Osborne hoped, it also suggests that his aspiration of eliminating the deficit in this parliament may prove equally elusive. //&! Despite strong employment growth, wage growth remained historically weak - the usual link between falling unemployment and rising wages seemed to have been broken. - bbc.in/1OEffcS
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october 2015 by asterisk2a
UK mortgage market, Barclays Qatar probe and US bank CEOs by FT Banking Weekly
there will be no push for new homes to flood the market, increasing prices support status quo, Loan to value measures (underwater or not?). house prices outpaced income since GFC. Buy-to-Let amplifies boom-bust. bank system resilient enough for 35% fall of prices. // generationengerechtigkeit - more of disposable income to spend on rent! putting money into pockets of rentier (buy-to-let) who can him or herself buy only so many pairs of jeans.
UK  mortgage  market  2015  NPL  underwater  CDS  securitisation  retail  banking  investment  banking  CDO  Taper  BOE  ZIRP  NIRP  QE  property  bubble  Buy-to-Let  Help  to  Buy  Scheme  self-regulation  regulation  regulators  Right  to  Buy  generation  rent  Supply  and  Demand  Demand  and  Supply  distortion  GFC  recovery  leverage  macroprudential  policy  microeconomic  policy  constituency  Tories  Conservative  Party  Generationengerechtigkeit  rent-seeking  rentier 
october 2015 by asterisk2a
Nomi Prins-Federal Reserve Transition to Destruction - YouTube
via - http://schiffgold.com/interviews/former-wall-street-insider-some-form-of-bank-bail-ins-will-come-to-us-video/ ||&! QE and ZIRP bad policy, bank and market cuddeling. no mainstreet recovery! trickle-down failed. Private sector can not carry existing minimal momentum forward. policy has not helped people on the ground. // many bubbles created: junk bond/zombie corps, car loans, student loans, property, ... // transition to destruction, volatility is first sign. // market manipulation! // inflated financial system // rise in NPL! where how will they cover that? another bailout? or bail-in. taking depositors haircut. FDIC can't cover that all.
ZIRP  NIRP  book  QE  reflate  reflation  equity  bubble  credit  bubble  Taper  Richard  Koo  BRIC  China  2015  junk  bond  trickle-down  economics  Super  Rich  1%  property  bubble  household  debt  UK  USA  BOE  Fed  mandate  Fed  Janet  Yellen  Mark  Carney  MPC  monetary  policy  monetary  transmission  mechanism  excess  reserves  retail  banking  secular  stagnation  wage  stagnation  disposable  income  income  distribution  income  inequality  Gini  coefficient  inequality  squeezed  middle  class  job  creation  job  market  labour  market  Niedriglohnsektor  Service  Sector  Jobs  recovery  GFC  benbernanke  alangreenspan  dot.com  speculative  bubbles  bank  bailout  banking  crisis  leverage  margin  trading  Super  Cycle  debt  servitude  private  debt  debt  monetization  debt  monetisation  fiscal  policy  austerity  consumer  debt  credit  card  credit  card  debt  car  loan  debtoverhang  economic  history  zombie  banks  zombie  corporations  zombie  consumer  mainstreet.org  Wall  Street  profit  maximisation  shareholder  value  crony  capitalism  corporate  debt  bubbles  asset  bubble  correction  mortgage  market  libor  rigging  scandal  trust  Career  Politicians  neoliberalism  neoliberal  FX  reserves  hot-money  currency-war  currency  debasement  currency  war  balance  sheet  recession  Niall  Ferguson  financial  repression  distortion  Pr 
october 2015 by asterisk2a
Homelessness figures: Nearly 100,000 children in England 'homeless' - BBC News
Nearly 100,000 children in England are living in temporary accommodation after being made homeless, new figures show. // &! More & more student start work after graduation in low pay jobs not requiring a diploma, due to current job market/job creation situation in UK! Not hitting 21k repayment threshold - bbc.in/1OU0K3H - OBR show fewer are likely to start paying than was expected when the policy was introduced, [...] freezing the loan repayment threshold - alongside other changes such as replacing maintenance grants for poorer students with loans - will significantly increase the cost of going to university. It says this risks undermining pledges by successive governments to improve social mobility, as well as raising uncertainty in students' minds over the terms of their borrowing. //&! Higher education cuts 'risk NI being left behind' - bbc.in/1gZMrgj //&! Doctors warn Tories not to cut free school meals (child poverty, food poverty) bbc.in/1LewQrn
UK  property  bubble  Supply  and  Demand  Demand  and  Supply  affordable  housing  social  housing  Gini  coefficient  Generationengerechtigkeit  generation  rent  poverty  trap  child  poverty  food  poverty  austerity  Policy  Makers  dogma  ideology  neoliberalism  neoliberal  Tories  Conservative  Party  housing  market  Crisis  housing  benefit  benefits  welfare  state  social  safety  net  bank  bailout  fairness  social  cohesion  minority  constituency  error  folly  babyboomers  social  tension  Toff  Establishment  Privileged  Entitlement  general  election  2015  election  campaign  promises  Help  to  Buy  Scheme  excess  reserves  mortgage  market  Buy-to-Let  Right  to  Buy  Buy  to  Wall  Street  shareholder  value  profit  maximisation  inequality  Funding  for  Lending  Scheme  macroprudential  macroeconomic  microeconomics  disposable  income  discretionary  spending  debtoverhang  household  debt  recovery  2015  consumer  debt  debt  servitude  private  debt  Payday  Loans  Student  Loan  Millennials  generationy  secular  stagnation  low  income  prevention  job  security  job  market  labour  market  Niedriglohnsektor  Service  Sector  Jobs  job  creation  income  mobility  social  mobility  downward  mobility  precarious  work  Precariat  working  poor  University  vocational  education  professional  education  Maintenance  Student  Maintenance  child  Allowanc 
september 2015 by asterisk2a
Bank of England concerns over buy-to-let boom - BBC News
The growing buy-to-let property market in the UK could post a threat to wider financial stability, a Bank of England committee has said. [...] Buy-to-let mortgage lending had the potential to "amplify" a housing boom and bust, the Bank's Financial Stability Committee (FPC) concluded. Lending in this sector has risen by 40% since 2008, the FPC said. It stopped short of suggesting any intervention by government or regulators at this stage. "The FPC is alert to the rapid growth of the market and potential developments in underwriting standards," the committee said.
Buy-to-Let  Right  to  Buy  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  BOE  macroprudential  policy  macroeconomic  policy  microeconomic  policy  fiscal  policy  monetary  policy  unconventional  monetary  policy  ZIRP  NIRP  QE  Supply  and  Demand  Demand  and  Supply  distortion  mortgage  market  NPL  Boom  and  Bust  irrational  exuberance  rent-seeking  rentier  generation  rent  Buy  to  Tories  Conservative  Party  Makers  Mark  Carney  FOMO  underinvestment  productive  investment  Wall  Street  shareholder  value  profit  maximisation  excess  reserves  zombie  banks  investment  banking  retail  banking  London  Westminster  Career  Politicians  recovery  GFC  No  Representation  Millennials  Generationengerechtigkeit  fairness  infrastructure  investment  George  Osborne  constituency  babyboomers 
september 2015 by asterisk2a
The new right to buy is solving 1979’s problems at today’s expense | Gaby Hinsliff | Comment is free | The Guardian
This Thatcherite policy revival fails to recognise that the main cause of the housing crisis is affordability //&! Housing bill needs radical, long-term measures to reform the market. As well as increasing supply, the government needs to use the tax system to make buy-to-let less attractive as an investment - bit.ly/1PDxWe3
Help  to  Buy  Scheme  Buy  to  Rent  Right  to  Buy  neoliberalism  neoliberal  Supply  and  Demand  Demand  and  Supply  Tories  Conservative  Party  austerity  David  Cameron  George  Osborne  dogma  ideology  affordable  housing  social  housing  UK  2015  budget2015  Generationengerechtigkeit  generation  bank  bailout  banking  crisis  bank  crisis  trickle-down  economics  Wall  Street  profit  maximisation  shareholder  value  shared  economic  interest  infrastructure  investment  underinvestment  general  election  2020  general  election  2015  election  campaign  promises  productive  investment  productivity  output  gap  commuting  disposable  income  discretionary  spending  wage  growth  wage  stagnation  income  growth  low  income  job  creation  labour  market  job  market  labour  economics  Niedriglohnsektor  squeezed  middle  class  generationy  Millennials  sovereign  debt  crisis  recovery  economic  history  household  debt  consumer  debt  debt  servitude  credit  bubble  NPL  mortgage  market  BOE  fiscal  policy  monetary  policy  macroprudential  policy  macroeconomic  policy  microeconomic  policy  Mark  Carney  financial  incentive  tax  code  distortion  Buy-to-Let 
september 2015 by asterisk2a
The other generation rent: meet the people flatsharing in their 40s | Money | The Guardian
Number of flatsharers aged 45-54 has risen by 300% in five years, figures show, amid soaring house prices, especially in London [...] Photographer Alex Forsey, 44, is typical of the new generation of flatsharers in their 40s. He recently moved into a house in Clapton, east London, with three other people in their 20s to 40s. He said: “The most affordable one-bed flat I was shown was £1,200 a month, and it was worse than a squat. The agent tried telling me it was a bargain.” //&! ability to get interest only loan is unbelievable.
generation  rent  London  property  bubble  Supply  and  Demand  Demand  and  Supply  UK  distortion  ZIRP  NIRP  QE  asset  allocation  asset  bubble  alternative  investment  Buy  to  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  excess  reserves  mortgage  market  2015  macroprudential  policy  macroeconomic  policy  microeconomic  policy  BOE  NPL  subprime  cost  of  living  cost  of  entry  living  standard  living  spaces  standard  of  living  air  pollution  noise  pollution  city  living  urbanisation  economies  of  agglomeration 
september 2015 by asterisk2a
Borrowing up amid interest rates speculation - BBC News
Mortgage brokers said that the relatively low mortgage rates on offer could be a response to a mismatch of supply and demand. "The mortgage market remains over supplied with lenders having more money to lend than there are people looking for home loans. This means criteria will have to loosen and rates will have to remain low to ensure lenders hit their volume targets," said Mark Harris, chief executive of SPF Private Clients. "For many, the main issue is not so much finding a cheap mortgage rate but being able to prove affordability to satisfy the lender and meet [the regulator's] tighter criteria."
property  bubble  mortgage  market  distortion  affordable  housing  housing  market  Crisis  UK  social  housing  generation  rent  Supply  and  Demand  Demand  and  Supply  debtoverhang  household  debt  consumer  debt  debt  servitude  disposable  income  discretionary  spending  private  debt  2015  Taper  BOE  ZIRP  NIRP  QE  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  excess  reserves  unknown  unkown  unintended  consequences  subprime  macroprudential  policy 
september 2015 by asterisk2a
Bumper payouts for housebuilding executives as market booms | Business | The Guardian
Two of Britain’s largest housebuilders, Berkeley Group and Persimmon, could hand out about £1bn to their top executives and managers in pay and bonuses over the next six years, boosted by strong UK house prices and government-subsidies for home-buyers. Tony Pidgley, founder and executive chairman at Berkeley, is expected to face tough questions on Tuesday at the group’s shareholder meeting near its headquarters in leafy Cobham, Surrey, after it emerged last month that his pay package last year was worth £23.3m. [...] Meanwhile, executives at Persimmon, the UK’s largest housebuilder, also have a Berkeley-style incentive scheme that is one of the most generous to be found at a London stock market-listed firm. [...] Berkeley’s share price has risen more than 40% since the election of a Conservative government in May, [...] [bonuses] “entirely based on short-term performance”. [...] return on equity[.][ < KPI, what gets measured gets done ] &! bbc.in/1KE0jut - Barratt Homes profits +45%
social  housing  affordable  housing  CEO  pay  Wall  Street  profit  maximisation  shareholder  value  CEO  Leadership  housing  market  housing  crisis  generation  rent  Generationengerechtigkeit  fairness  UK  property  bubble  Supply  and  Demand  Demand  and  Supply  vested  interest  Tories  Conservative  Party  No  Representation  social  tension  social  cohesion  gentrification  Gentrified  austerity  2015  mortgage  market  speculative  bubbles  speculative  speculation  hot-money  bonuses  bonus  transparency  accountability  crony  capitalism  shared  economic  interest  general  election  2015  election  campaign  promises  George  Osborne  babyboomers  David  Cameron  social  contract  political  theory  exploitation  lobbyist  lobby  Lobbying  oligopoly  oligopol  monopsony  cartel  antitrust  financial  incentive  Public  Good  underinvestment  investment  productive  investment  output  gap  productivity  commuting  infrastructure  investment  trickle-down  economics  neoliberalism  neoliberal  budget2015  policy  folly  policy  error  Makers  Public  short-term  long-term  living  standard  cost  of  living  cost  of  ownership  cost  of  entry  living  spaces  standard  of  living  living  environment  city  living  urban  planning  urbanisation 
september 2015 by asterisk2a
BBC News - A history of social housing
Viability assessments are commercially confidential. not even the council can have a look at them. just get yes/no, and something liking to an executive summary. >> bbc.in/1FR9JAh - The UK has a serious shortage of affordable homes. Lesley Curwen asks whether the current system - where councils do deals with developers to provide cheaper homes - is working. [...] in transparent, not accountable, no inclusion of community/tax payer. abuse of the system & situation. writing their own rules. knowing they have the leverage/upper hand due to the shortage and pressure put on councils by public due to shortage. the new-smaller bankster! Out come additional/more cost for everyone due all this. This is not a market. This is a one way game, again. Like the bank bailout was. either you bail us out on our conditions or you go down with us. // &! Why can't the UK build 240,000 houses a year? - bbc.in/1xjHHTi // &! bit.ly/17zBXQv - The housing crisis in charts &! bit.ly/1Nboz5Y &! bit.ly/1t4PWYh
social  housing  affordable  housing  UK  austerity  Tories  Conservative  Party  neoliberalism  neoliberal  exploitation  lobbyist  lobby  Lobbying  homeownership  Generationengerechtigkeit  generation  rent  fairness  Career  Politicians  No  Representation  social  contract  working  poor  Precariat  Help  to  Buy  Scheme  shared  economic  interest  disposable  income  discretionary  spending  long-term  view  long-term  thinking  property  bubble  mortgage  market  2015  segregation  social  cleansing  gentrification  Gentrified  urban  planning  urbanisation  social  cohesion  social  tension  political  theory  wage  stagnation  wage  growth  economic  history  Supply  and  Demand  Demand  and  Supply  bureaucracy 
september 2015 by asterisk2a
Housing market is hotting up, banks say - BBC News
The UK has a serious shortage of affordable homes. Lesley Curwen asks whether the current system - where councils do deals with developers to provide cheaper homes - is working. - bbc.in/1FR9JAh << abuse of process and accounting! profit maximization! how about starting up "housing for people co-op!" being a developer as social enterprise (together with other entrepreneurs like Branson)!? better architecture! and builder/partners take 10% off their contracts price and get part in co-op shares! long-term view! multi-purpose use regeneration. start out in manchester, ... // &! Foreign criminals are laundering billions of pounds through the purchase of expensive properties, which is pushing up house prices in the UK, the National Crime Agency has said. [ not only criminals park their money in property (being left empty) but also BRIC's newly minted paper millionaires post-GFC by engineered asset price reflation via centralbanks) - bbc.in/1HZXkFW &! bit.ly/1CX6uGL
UK  property  bubble  mortgage  market  affordable  housing  social  housing  2015  speculative  bubbles  asset  bubble  London  credit  bubble  China  PBOC  Fed  BOE  ECB  BOJ  ZIRP  QE  NIRP  generation  rent  BRIC  Career  Politicians  No  Representation  transparency  accountability  Public  Good  interest 
september 2015 by asterisk2a
Easy Money Creates the Most Dangerous Bubbles - Bloomberg View
[Money has been slushing arnd in markets speculating, not investing in future & productive, added value goods. big companies are flush 2. easy credit is holding zombie corps of the last century over water. western world is persisting 2 put a banking bailout/crisis in the light of a sovereign debt crisis 2 push idealogical austerity. falling way being, never be able 2 catch up with productivity, output gap, STEM, research, future of work, smart grid & infrastructure, retooling their economy 21st century style.] // "speculation in property markets, amplified by mortgage financing, as a persistent central factor driving economic cycles." [...] the worst bubbles -- those that inflict the most economic pain -- tend to involve not just speculation, but a surge in easy lending and increasing leverage. [...] economic downturns following credit bubbles were generally worse and lasted longer. [...] danger of leverage cycle. // [ easy credit & debt fuelled recovery of assets, not fundamentals ]
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august 2015 by asterisk2a
UK house price inflation ticks up, says ONS - BBC News
Housing charity Shelter said the ONS figures showed that the average price of a property had risen by £12,000 in the past year, pricing even more people out of the market. It appealed to the government to build more homes. Last week, the Royal Institution of Chartered Surveyors (Rics) reported that the number of homes for sale had sunk to a record low. The accountancy firm PwC said many more people would be forced to rent, rather than buy, their homes in the years ahead. "By 2025 there will be more private renters than people owning a home with a mortgage, " said Richard Snook, senior economist with PwC. "Today's figures show that house prices are growing at more than twice the rate of average earnings, further squeezing affordability for buyers."
generation  rent  UK  affordable  housing  social  housing  Right  to  Buy  Help  to  Buy  Scheme  macroprudential  policy  George  Osborne  David  Cameron  budget2015  policy  folly  policy  error  babyboomers  fairness  Generationengerechtigkeit  cost  of  living  cost  of  ownership  mortgage  market  property  bubble  housing  market 
august 2015 by asterisk2a
Housing affordability gap grows, says ONS - BBC News
The figures show that rent for social housing took up a larger percentage of residents' earnings in England and Wales in 2014 than in 2002. Many commentators have suggested that building more homes in certain areas will help to tackle the affordability issue. The ONS said that house building had not recovered to the 150,000 or more completed new homes a year that were built before the recession. During the latter half of the 1960s more than 300,000 new homes were built every year. Campbell Robb, chief executive of charity Shelter, said: "Millions of people who simply want a home of their own in a place where they can find work and take care of their families, are instead finding themselves priced out and stuck in a lifetime of unstable and expensive private renting.
social  housing  affordable  housing  housing  market  UK  2015  disposable  income  discretionary  spending  mortgage  market  generation  rent  property  bubble  inequality  Gini  coefficient  Supply  and  Demand  Demand  and  Supply  policy  folly  Makers  policy  error  George  Osborne  David  Cameron  austerity  budget2015  Tories  Westminster  Conservative  Party  Toff  Privileged  Establishment 
august 2015 by asterisk2a
UK interest rate rises - waiting for lift-off | Business | The Guardian
In 2018 – by when, bear in mind, most of the work of austerity is expected to have been done – Miles calculates that fiscal consolidation will still drag interest rates downwards by more than 0.75% compared to what would otherwise be the case. This is one of the factors explaining the (commonly held) assumption that interest rates will approach a “new normal” over the next few years that is likely to be about half as high as the 5% that prevailed pre-financial crisis. Even in the second half of the parliament this “fiscal headwind” will still be blowing strong. [...] The case for introducing more transparency isn’t mere technocratic trimming. The balance struck between monetary and fiscal policy has big consequences. There are obvious distributional implications (all else equal, mortgage holders win; savers lose). There are ramifications too for the capital allocation process, the current account, and the risk of an asset-bubble. The list goes on: the macro-mix matters.
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august 2015 by asterisk2a
STEPHANIE FLANDERS: It's borrowing and debt driving Britain's recovery | This is Money
New forecasts that went with his speech paint a different picture, of a recovery driven in large part by households borrowing more, and saving less. The level of household debt, relative to income, has been falling since the crisis, as families have cut back and worked to pay off debt. But the new Budget forecasts show it starting to rise again, from the final quarter of this year, moving from 142 per cent of income back up to 166 per cent by 2019. That’s more or less where household debt had got to in the lead up to the financial crisis, after all that irresponsible ‘debt fuelled growth’ under Gordon Brown. [...]And total level of investment is now more than 20 per cent below where it was at the start of 2008. // &! bit.ly/1IxXKax - low inflation, no inflation pressures expected till 2016 // &! bit.ly/1DepsJ2 - The UK has the most unbalanced economy of any OECD country.
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july 2015 by asterisk2a
Generation rent: the housing ladder starts to collapse for the under-40s | Money | The Guardian
House price rises of 5% a year and a shortage of affordable homes are set to swell the ranks of “generation rent” over the next decade, so that by 2025 more than half of those under 40 will be living in properties owned by private landlords. A report from economists at accountancy firm PwC suggests the number of new homebuyers is set to fall over the next 10 years, as the high cost of raising a deposit locks large segments of society out of the housing market. [...] “A large and sustained increase in affordable housing supply will be required to meet the needs of a UK population that is growing relatively rapidly by European standards.” // Tories pledged new Right to Buy Scheme of their Council house/flat in the general election 2015. And promises to reform building and planning process probably will come shot of. // bit.ly/1JgWVn1 << landlords (especially buy to let) display rent-seeking behavior! renter rights need to be strengthened in light of current times & of future to come.
UK  affordable  housing  housing  market  Supply  and  Demand  Demand  and  Supply  Help  to  Buy  Scheme  macroprudential  policy  2015  mortgage  market  speculative  bubbles  China  London  social  housing  Makers  generation  rent  asset  bubble  ZIRP  NIRP  QE  Right  to  Buy  Tories  Conservative  Party  general  election  2015  election  campaign  promises  rent-seeking 
july 2015 by asterisk2a
Sorry to burst your bubble | The Economist
bit.ly/1IfX0s9 // "According to two new papers, the crucial variable that separates relatively harmless frenzies from disastrous ones is debt." // see China Stock Market leverage pop mid 2015 - with its huge rise in margin debt trading ... money which was flowing out of the property market into the Stock Market // // &! so if it is about debt - UK mortgage market & consumer/private debt of all kind (loans and credit card debt) does qualify as they took up what was cut by austerity. Plus the Supply Demand distortion, with new builds/project at a decades lowest. // Question for China. The China problem. Can they make their system sustainable before it will crush everyone. // The most obvious is China. But the next one will be different & greater than all came before. Period. Still, UK had not a housing bubble collapse on its own making. Only through endogenous circumstances. UK recession as UK economy runs mostly on consumer sector & debt) bit.ly/1OpClSO bit.ly/1wQITjb bit.ly/1SycLtY
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july 2015 by asterisk2a
Mark Carney indicates that interest rates may rise this year - BBC News
>> uk is as USA, consumer dependent // bbc.in/1M8GM3L - 2% in two years - inflation targeting, slack in economy drag on rising cost, ... // looks forward how inflation looks at the turn of the year! as commodity price drop gets out of calculation y/y. // &! http://www.bbc.co.uk/news/business-33560035
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july 2015 by asterisk2a
Credit Booms & Credit Busts - YouTube
// financial cycle twice as long as business cycles (which is on top, like an inverted pyramid). // financial markets are not self-stabilising // better make policy on caution, that if you don't act you will cause more long-lasting economic damage by curbing one obvious bubble not in (ie uk property bubble - people who have difficulty serving their interest payment) // QE does not facilitate loan growth in times of balance sheet recession - Richard Koo // QE is reflationary and currency war, downside size unknown - look Richard Koo, state has to pick-up shortfall of demand // // There is now a growing consensus among policymakers and academics that a key element to improve safeguards against financial instability is to strengthen the “macroprudential” orientation of regulatory and supervisory frameworks. [Dr. Claudio Borio @ BIS], one could even say that “we are all macroprudentialists now”. And yet, a decade ago, the term was hardly used. What does it mean?
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july 2015 by asterisk2a
The escape from the balance sheet recession and the QE trap: An interview with Richard Koo - YouTube
"deflationary" is a symptom of balance sheet recession, deleveraging, debtoverhang ... of the private sector, corporate sector (& public gov sector) (to repair balance sheet). inflation of price of goods 2 live is still existent. you cant eat laptops. inflation is still present. actions of private sector, corporate sector to repair balance sheet (and even public sector, all three together) is deflationary. // UK! interesting is that consumer still borrows ie via credit card and mortgages. // question is how long UK can run such a big current account deficit. somebody has to pay for it, if not the gov with debt, then it has to be the private sector. as long as it can serve debt payments, as long as it has wage growth (increase of productivity, closing of output gap). But job creation during recovery was mostly Service Sector Jobs & self-employment. Not added value STEM. // corporate sector will not, in the long-run, pay for current account deficit w debt. &! youtu.be/EhYvaMc3f44
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july 2015 by asterisk2a
UK's inflation rate falls to 0% - BBC News
bit.ly/1IXuomp >> Carney: Current account deficit is a risk highlighted by FPC. UK is relying on the kindness of strangers to finance current account deficit. Household borrowing isn't driving the deficit Tighter fiscal policy is needed. Tighter macroeconomic policy is needed also. Deficit highlights importance of maintaining the attractiveness of the UK for foreign investment // &! bit.ly/1I07olT - BOE's Miles doesn't see secular stagnation in the UK [...] Carney - Health of the financial system is likely to boost productivity [really?] [...] McCafferty: Low income jobs have kept productivity low &! bit.ly/1JfaSxr - Bank is looking at the household sensitivity to rate rises [ mortgage bubble will prevent BOE to raise rates faster as demand stokes as more disposable income is spend on serving interest payments thus depressing GDP growth bc 70% of it is consumer spending ] &! bit.ly/1HtySg1
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july 2015 by asterisk2a
House prices rise in Scottish coastal towns - BBC News
The bank's researchers found that a number of coastal towns had seen "substantial" increases since 2005. Of 59 coastal towns surveyed, 15 recorded price increases of at least 50% in that time. Fraserburgh in Aberdeenshire experienced the biggest rise with a 109% jump from an average price of £63,540 in 2005 to £132,920 last year. Lerwick in Shetland, and Peterhead, also in Aberdeenshire, recorded increases of 102%. [...] Average prices in Lerwick rose from £77,500 to more than £156,000, while Peterhead jumped from £69,000 to £139,000. Partly due to the substantial rises in the top performing towns, the average house price in Scotland's seaside communities rose by 38% between 2005 and 2014 - exceeding the 31% increase for Britain as a whole. Nine of the 10 most expensive seaside towns are on the east coast and the 10 least expensive seaside towns are in western Scotland. // [ Oil Capital of Europe ]
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may 2015 by asterisk2a
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