Mindfulmoney Have A Semi-Retraction Of Their Attack On Hpc

[GordonBrownSpentMyFuture]

To join the dots. http://www.housepricecrash.co.uk/forum/index.php?showtopic=169592&view=findpost&p=3125314

"Previously on House Price Crash..."

[GordonBrownSpentMyFuture]

The article, in the comparison of the benefits of low house prices versus high house prices, didn't give space to the role of house prices within the general economy and the way that huge debt and high house prices have helped to make the UK and it's labour force uncompetitive both at home and abroad and helped in offshoring jobs etc. How the money directed into housing was in large part very much at the expense of pension funds. Decent pension funds would have meant less need for housing equity on retirement.

Malinvestment in housing has meant far less investment in UK industry and if that hadn't happened the UK would be several steps forward towards a decent traded sector that politicians are now going on about. That was understood in the 80s when house prices multiples were lower than now and that was well publicised at the time and the economy partly rebalanced towards the traded sector before doing the U turn towards housing again and now the UK is perhaps about to do another U turn - or so they say.

+1

[(Blizzard)]

The article, in the comparison of the benefits of low house prices versus high house prices, didn't give space to the role of house prices within the general economy and the way that huge debt and high house prices have helped to make the UK and it's labour force uncompetitive both at home and abroad and helped in offshoring jobs etc. How the money directed into housing was in large part very much at the expense of pension funds. Decent pension funds would have meant less need for housing equity on retirement.

Malinvestment in housing has meant far less investment in UK industry and if that hadn't happened the UK would be several steps forward towards a decent traded sector that politicians are now going on about. That was understood in the 80s when house prices multiples were lower than now and that was well publicised at the time and the economy partly rebalanced towards the traded sector before doing the U turn towards housing again and now the UK is perhaps about to do another U turn - or so they say.

A reduction in the mobility and flexibility of your labour force, as people become more and more priced out of areas with good jobs. A reduction in the real value of talent, work or education, none of which can compete with the money collected by owning land.

All made worse by the fact that raised housing costs are mostly paid by young people starting new lives, new jobs and new businesses, and paid to older people just as they are becoming economically inactive.

Each of these economic problems has the same social effect. They lead to a decrease in social mobility, and an increasing gap between the haves and the have-nots.

You start out with a low-cost, flexible, hard-working labour market and an economy where anyone can make a good living if they are prepared to work.

Then you push-up the costs, remove all the flexibility, and eliminate the real value of work. Then you take away all the capital and give it to people who have retired.

What do you think happens to the economy?

High house prices poison everything.

[erranta]

No, it's nonsense put about by people who don't know. I currently rent - sold in 2006, but still own other property. I do not belive the equity that arrived since 1994 is signs of a market working properly atall. It has produced distortions in the economy, shut out 1st time buyers, given too much equity to old folk who never dreamed it would be there anyway. Come on....where is the perspective.

People pay stupid rents, the govt stupid amounts of HB. (Holier than thou speech coming) For one thing, none of it would have happened had I been in charge of policy the last 15 years. There would have been no fall in rates to 3.75% in 2004 when plainly property was ramping up. There would have been no loans over 2.5 x incomes allowed either. We would be living with homes about 40% less than the current price and first timers - people who bother to save up a deposit, would have been still buying. There would have been a Euro crisis but not a housing price crisis. Also banks would never have been deregulated by me in the way they have over 20 yrs and they would not be on the hook for massive residential property loans.

Politicians need to do Economic history before stepping up as chancellor or PM.

The vast majority of Westminster had secretly turned into multi-property owning Vi's and were/are ALL rotten to the core, flipping houses and committing fraud against taxpayer on expenses

You don't expect them to vote against their cash-cows or cause themselves any house related inconvenience do you?

Look @ Blair and his properties - he knew the corruption & future fixing (on the cards) going inside Westminster re property 'investing'