vlad the impaler, on 15 February 2012 - 10:49 PM, said:
An interesting thread. My contribution is this:
I personally don't believe that things will go back to the way they were, and I am sorry to say that 'this time it really is different'. Why? The medium we are using to have this discussion.
The rise of the internet, and indeed the absolutely massive increase in both the speed and volume of personal communications is, in my opinion the difference. The internet is a world changer - and it is tearing up the rule book of what came before. The spivs and sharks have not been slow in exploiting it. Aleady we have viral marketing, hype and b*llcrap being spread around by PR companies pushing 'the next big thing'. The BBC in the day at least seems to one big plug for either new movies (Breakfast Time), Antiques (Bargain Hunt) or Property (HUTH etc). The speed with which news travels was unthinkable in the mid 90s. Bubbles are being artifically inflated by certain interested parties (gold, classic cars, collectable watches, houses, even Ebay is not immune. People will collect anything, and the interent has let the cat out of the bag. Very niche and geeky things I used to collect years ago - all have gone nuts in terms of price, and this is because so many people have access to these things through web sales. There are no more bargains, everyone is now too savvy and switched on for that.
So, I am afraid I don't think houses will drop much. The messgae about what a great investment they are is too deeply ingrained in people. The moment something is perceived as a 'bargain', the news travels in a flash and 1000 people jump on it. No longer a bargain.....
what a load of old codswallop
speculation is 1000s of years old, human nature is not going top be changed by the internet
what you seem to be implying is that the internet makes for a more efficient market with more informed participants
which is patently untrue given that we have just also suffered the biggest credit crunch in human history
what can be overvalued in the age of the internet can also be undervalued in the age of the internet
what about Northern Ireland? Japan?
and if everybody was so well financially informed - why oh were the trading volumes for the stockmarket so low in early 2009? why were almost everybody I met giving me funny looks for me buying up shares by the bucketload?
you provide no evidence for your assertion, which remains just that, an assertion without foundation
house prices are toast