National Debt

PostRe: National Debt by **Hexx** » Thu Dec 10, 2009 9:18 pm

Completely OT - but I only just noticed Lucien's avatar :wub:

PostRe: National Debt by **Skarjo** » Thu Dec 10, 2009 9:25 pm

Merry Christmas n00bs wrote:
Star-jo wrote:Don't worry, it will be at least five before anyone will let you anyway!

Yeah, that's probably about right.

You're also looking at higher interest rates, high deposits (typically at least 20-25%, or anything up to 50K per property based upon recent average price calculations)and an extremely competitive market. Not to mention facing a banking system where the speculative renting/investment market was a major fuel of the current situation, and also facing them as a newcomer with no previous experience.

PostRe: National Debt by **SEP** » Thu Dec 10, 2009 9:25 pm

Star-jo wrote:
Merry Christmas n00bs wrote:
Star-jo wrote:Don't worry, it will be at least five before anyone will let you anyway!

Yeah, that's probably about right.

You're also looking at higher interest rates, high deposits (typically at least 20-25%, or anything up to 50K per property based upon recent average price calculations)and an extremely competitive market. Not to mention facing a banking system where the speculative renting/investment market was a major fuel of the current situation, and also facing them as a newcomer with no previous experience.

Thanks for destroying my dreams, Skarjo. :cry:

PostRe: National Debt by **Skarjo** » Thu Dec 10, 2009 9:28 pm

Merry Christmas n00bs wrote:
Star-jo wrote:
Merry Christmas n00bs wrote:
Star-jo wrote:Don't worry, it will be at least five before anyone will let you anyway!

Yeah, that's probably about right.

You're also looking at higher interest rates, high deposits (typically at least 20-25%, or anything up to 50K per property based upon recent average price calculations)and an extremely competitive market. Not to mention facing a banking system where the speculative renting/investment market was a major fuel of the current situation, and also facing them as a newcomer with no previous experience.

Thanks for destroying my dreams, Skarjo.

HSBC - Pissing on dreams since they hired Skarjo.

PostRe: National Debt by **Slartibartfast** » Fri Dec 11, 2009 1:01 am

Lucien wrote:It's crazy a house that was built a long time ago, and has been paid for over time, can still not belong to anyone.

They belong to the Bank.

Countries can issue Bonds and take on enormous debt pretty confidentially as they can't die or be liquidated, unlike individuals or companies. But don't forget that it'll be the children and grandchildren servicing that same debt.

PostRe: National Debt by **Dolph Wiggler** » Fri Dec 11, 2009 1:15 am

Is there any truth to the section in Zeitgeist where they were talking about the economy. That just seemed mental to me, that it was the banks that loaned the government money, and then expected interest back on top of that which of course regular people would have to pay back.

I know nothing about economics btw.

PostRe: National Debt by **Dolph Wiggler** » Fri Dec 11, 2009 1:25 am

Yeah i might watch that cheers, it's something i wouldn't mind knowing more about.

Also, if that's true, is it every country that works like that or just the US?

PostRe: National Debt by **RamSteelwood** » Fri Dec 11, 2009 9:33 am

i think most countries have so much debt cos the governments care more about their own rep and winning the next election than the country itself, so they borrow lots of money to buy a few baby incubators to try to win votes, leaving the debt to people in charge further down the line.

PostRe: National Debt by **Slartibartfast** » Fri Dec 11, 2009 12:44 pm

Lucien wrote:
Slartibartfast wrote:
Lucien wrote:It's crazy a house that was built a long time ago, and has been paid for over time, can still not belong to anyone.

They belong to the Bank.

Countries can issue Bonds and take on enormous debt pretty confidentially as they can't die or be liquidated, unlike individuals or companies. But don't forget that it'll be the children and grandchildren servicing that same debt.

Yeah but nobody wants them to belong to the bank, you know what I mean no family can own something many families have paid for, or a family can pay almost as much rent as a house can cost over time, yet not own it.

Debt does just seem ridiculous though, I would actually rather have gooseberry fool all than put a tax burden on every coming generation. Zeitgeist claims people in the west are slaves because of an endless cycle of debt, even at this stage I can completely get that view.

The Bank wants to own it - hell it just lent someone £200k and until it gets that back it wants to at least partly own that house! Remember governments and banks aren't actually faceless organisations, they are run, owned and are profitable for hundreds of thousands of employees, shareholders and stakeholders.

PostRe: National Debt by **gaminglegend** » Fri Dec 11, 2009 1:17 pm

WHAT? I don't get that..

Say I buy a house/.
Pay for it fully without mortgage or pay of the mortgage

- surely the house then fully belongs to me
- if i wish to hand it down to family I can
- if i wish to sell I can for cash

PostRe: National Debt by **Hexx** » Fri Dec 11, 2009 1:18 pm

gaminglegend wrote:WHAT? I don't get that..

Say I buy a house/.
Pay for it fully without mortgage or pay of the mortgage

- surely the house then fully belongs to me
- if i wish to hand it down to family I can
- if i wish to sell I can for cash

If you purchase yes you own it outright.

There's potential IHT issues (and maybe CGT if not your main residence) issues when you pass it on.

PostRe: National Debt by **Slartibartfast** » Fri Dec 11, 2009 1:26 pm

gaminglegend wrote:WHAT? I don't get that..

Say I buy a house/.
Pay for it fully without mortgage or pay of the mortgage

- surely the house then fully belongs to me
- if i wish to hand it down to family I can
- if i wish to sell I can for cash

Of course, but not many people have £200k. You can think of a mortgage as a loan with the house as collateral. As you pay off the loan, the equity of the bank decreases and yours increases.

National Debt

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