Links – 12/04/07

A wealthy mind(fiscalmusings)

There’s such a huge focus today on the lifestyle of the rich. We need look no further than all the hoopla that surrounds the likes of Donald Trump, P Diddy and Oprah. The problem is that the focus is on their wealth and fame and not on what got them there. Instead of trying to obtain the lifestyle of the rich, start developing the mindset of the rich.

Buy or rent?(nytimes)

graph / monetary calculator

UK house prices skyrocket(yahoo)

Average house prices in Britain have more than doubled in 15 years, forcing many to continue to live with their parents for longer, according to a government report published Wednesday.

Inflation biggest risk to economy(FT)

The minutes, released on Wednesday, said “all members” of the committee agreed the “predominant policy concern remains the risk that inflation will fail to moderate as expected”. The hawkish comments underlined the reluctance of the central bank to cut interest rates and prompted a sell-off in stocks and government bonds.

US real estate prices to fall(moneyandsuch)

According to this CNN story that ran earlier today, The National Association of Realtors now expects the national median home price to drop by 0.7% in 2007. If this materializes, it will be the first time that the group has recorded a nationwide decline since it first started keeping records 40 years ago. Last month the group forecast a 1.2% increase in the price of homes this year.

Spending money tight(thriftyscot)

UK households have less money to spend now than they did 12 months ago according to new research. Data provider KDB told the Dow Jones news agency that the last six months had seen a decrease in disposable wealth of two per cent, bringing average annual spending funds down to £38,929.

Radio 1 straw poll: struggling to buy a house?(BBC radio1)

We are in scotland and if we were still looking we would still be getting out bided if we were still looking for a property that was ready to move into.I work for a mortgage broker and see what the market and interest rates are doing. House prices are still increasing because banks are lending much more than people can afford (due to 5x income). This means that there is still the initial funds available to purchase and the property valuations will increase. Repossesion are now also on the increase which could mean a big dip in valuations and people who have bought when high won’t be able to remortgage for a better rate becuase the property isn’t worth what it used to be.

Asset price deflation(marketoracle)

Do not — I mean, DO NOT — put your financial fate in the hands of those same CNBC (aka General Electric) cheerleaders, Wall Street pimps, Pollyannaish U.S. policymakers or guys who write articles featuring a bunch of charts as a means of convincing you that they know what the hell they’re talking about. Don’t listen to Treasury Secretary Henry Paulson when he steps to the podium to say that the “world economy is strong” ( What’s he going to say? ” The world economy is unbelievably precarious and we’re all going to hell in a handbasket! “? ). In the coming months, quotes from Paulson, Ben Bernanke and George Bush will sound an awful lot like another famous assurance from long ago: “The Titanic is unsinkable, Molly! I tell you — unsinkable!”

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