From: Robin T Cox 
Subject: =?iso-8859-1?q?Re=3A_The_=A317=2C000?= loan
 =?iso-8859-1?q?that_mounted_into_a_debt_of_=A3116=2C000?=
Newsgroups: uk.finance
Date: Sun, 12 Aug 2007 20:07:01 GMT
Bytes: 4775

On Sun, 12 Aug 2007 19:26:42 +0000, ®i©ardo wrote:

> Robin T Cox wrote:
>> On Sun, 12 Aug 2007 17:29:19 +0000, ®i©ardo wrote:
>> 
>>> Nick wrote:
>>>> Tim wrote:
>>>>>>> "Nick" wrote
>>>>>>>> Why would we expect the house price inflation
>>>>>>>> to under perform a mortgage rate by 3 times...
>>>>>> "Tim" wrote:
>>>>>>> No-one has suggested it would, have they?
>>>>>>> Not even the bank in this case...
>>>>>>>
>>>>> "Nick" wrote
>>>>>> The basis of pricing any financial
>>>>>> deal is what is a fair price/rate...
>>>>> ... OK so far ...
>>>>>
>>>>> "Nick" wrote
>>>>>> ... A sensible starting point for this would be a rate that
>>>>>> offers the bank the same expected return as a mortgage...
>>>>> That may well be a "starting point", but
>>>>> it doesn't make it the final "fair" level!
>>>>>
>>>>> "Nick" wrote
>>>>>> Arguing about more advance features such
>>>>>> as a risk premium just clouds the issue.
>>>>> No, it very much *is* the issue!
>>>>>
>>>>>
>>>> Yes but in order to work out what it is we need a starting point.
>>>>
>>>> I see no particular reason that the bank should be strongly risk adverse 
>>>> with regard to the general out performance of housing market vs mortgage 
>>>> rate.
>>>>
>>>> It may be that there is an additional premium relating to a fear that 
>>>> the house condition may deteriorate but even this we could put 
>>>> reasonable bounds upon.
>>>>
>>>> So how would you go about determining a fair rate?
>>> You're the one having the vapours over this, on behalf of someone you've 
>>> never met and whose full circumstances you're not fully aware of and who 
>>> entered a commercial transaction, complemented by legal advice, with 
>>> their eyes open.
>>>
>>> How would YOU go about determining a "fair" rate? Fair to whom? Risk 
>>> free to all participants?
>>>
>>> Have you ever tried to run a business?
>>>
>> 
>> Getting nervous again, are we?
> 
> About what? I think the real concern with society today is that those 
> who can't run a busienss, or who are totally incompetent, get to run 
> business by proxy by becoming civil servants.

What have you got against civil servants? Didn't they send you your
benefits on time?

Or didn't they teach you how to spell 'business'?

>> 
>> Try addressing Nick's arguments. He is not having vapours, unlike yourself.
> 
> You silly little chap. Anyone without original thought can be a Devil's 
> advocate.

So it seems. All you do in this news group is to make destructive
comments.

>> 
>> And he has already indicated that he knows that there a few approaches
>> to determining a 'fair rate.
> 
> Why doesn't he, and perhaps you - although that would require original
> thought and some guts - set up a scheme which incorporates  a "fair"
> rate. Don't forget that buckets full of hindsight are very, very cheap -
> about tuppence a time.

Why don't you?

>> 
>> What is your suggestion?
> 
> Well, I'm just asking, but what I won't be doing is cutting and pasting 
> something from either the Guardian or the Observer.
>

That, of course, would be totally beyond you.