London attraction fading
Chomsky heart attack
Repeated so often that it seems true, is the mantra that lower sterling helps exports, even though the manufacturers in the UK are free to set their own prices... I looked at gbp yen today and its 130, i have never seen it so low, and I just wonder what is the point of transferring all the purchasing power for uk assets to foreign currency holders abroad? how can it possibly help? the UK from previous (and ongoing) asset sales now has a persistent current account deficit but the boe keeps on going..and they will -keep on- going until they are forced to respond to a wage spiral but because their cr*ppy policies don't work we won't get one. i have given up on sterling its the most useless currency in the world.
A complex market
"Property owners have also developed a hyper-sensitivity to the socio-political climate. Itâs a dangerous mindset in a market powered by shifts in sentiment rather than economic reality. Article 50 has not been activated to exit the European Union and yet housing chains started to collapse in the aftermath of the vote."
Buyer enquiries and sales instructions continue to slip
Housing market picking up again....
Falling mortgage rates - No better time to buy....
Eliminate bankers, transaction costs, speculation and bank runs
Central banking in the Cloud, one clearing house, one lender and all of the above. And the BoE is moving towards part of this new banking world, where it would be more difficult to get loans for speculation since leveraging of credit through re- hypothecation of credit in the repo market (where several parties apparently own the same asset at the same time when in reality only one of them holds it) would be eliminated. Link in article succinctly explains repo market.
Maybe not inflation
Article suggests that the sudden growth of the money supply will result in inflation, and that the BoE rely on consequences of Brexit instead of rate rises. However, imo, " But they suddenly engaged in a reverse ferret, increasing their holdings of cash by an annualised 70pc over the past three month" the dash to cash by fund managers, or this kind of static creation of cash from financial instruments, could also mean that people are getting ready for an across the board drop in prices and want to be ready. As has been reported generally, the BoE is running out of easing measures. Anyway I don't know but it looks like whichever one we end up with of the two alternatives is coming up soonish.
Surely banks have ventured here before
'This reflects lenders' growing concern that the housing market could falter in the wake of the EU referendum, brokers say. High loan-to-value mortgages (where the loan represents a high proportion of the price paid) are risky, as they expose the lender and property owner to potential negative equity if prices fall.'