I Don't Understand Economics

[beanzontoast]

There isn't one. Part of the theory being that investors seeking positive returns will invest in business instead.

Some naive investors are also coming back to the BTL market .

I'd be too worried about a fire to trust keeping cash in the house. Kruggerands buried in the garden for me.

<<goes off to change log in name>>

Agreed. That, and the need to have an account for the convenience of paying bills from and having salary paid into, is about the only reason I bother with banks at all. I've never looked on them as a way of earning a return on deposits.

Now if they were to start charging just for the 'privilege' of having an account with them as Patrick mentions, I can see people moving to whichever 'banks' were able not to do this - or maybe the emergence of entirely new financial organisations where there was still no charge for letting them use your money.

 

[Cycling Naturalist]

Some naive investors are also coming back to the BTL market .

>>

Au contraire. My most astute clients are doing just this, and they are picking up property at unbelievably low prices. The Land Registry statistics don't show the prices being paid on distress sales, but they are incredibly low.

 

[cheadle hulme]

Au contraire. My most astute clients are doing just this, and they are picking up property at unbelievably low prices. The Land Registry statistics don't show the prices being paid on distress sales, but they are incredibly low.

On a yield basis (providing rents hold up) then yes, auction prices are starting to look attractive. In terms of wealth preservation though, I think prices will weaken further into this year.

 

[Blue]

Nobody understands economics including those who claim to.

I studied economics as a subject back in the early 70's. I recall my tutor telling the class that is we started every statement with "In my opinion" we couldn't be marked as wrong. It realy is that sort of subject.

Trying to hold firm on economic theory is like trying to hold onto a cat while giving it a pill.

 

[Cycling Naturalist]

On a yield basis (providing rents hold up) then yes, auction prices are starting to look attractive. In terms of wealth preservation though, I think prices will weaken further into this year.

The investors who make money buy when prices are going down and sell when prices are going up.

 

[asterix]

..that would make equities a good bet right now, especially the US ones, first.