Sunday, Jan 14, 2007
House prices have got to come crashing down
MSN: House prices have got to come crashing down
It can’t go on like this. House prices simply cannot continue to rise faster than earnings as they did again in 2006. First-time buyers can’t afford a home in 90% of Britain’s towns........
Posted by will @ 10:31 AM (140 views) Add Comment
4 Comments
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1. japanese uncle said...
Things are acceleratingly getting similar to what happened in Japan 17 years ago. Credit crunch is very likely to follow this panic to suffocate the housing market once and for all, as the BOJ has announced its intention to increase the official discount rate in a couple of weeks time, cutting the supply of cheap money on a global scale. But remember, Japan was at at least manufacturing vast amount of goods with fairly high value-added all the time, and personal debt was hard;y the issue. Still the shock of the collapse of the bubble was such, that the country is yet to recover from the ten year long deflationary trend. What should happen to this economy with little if any significant industrial/manufacturing basis, let alone the lowest level of savings and the highest level of personal debt in the industrialized world!
2. enuii said...
A very well written article worthy of being read right to the bottom, I feel that I must be psychic and cannot believe that more people cannot see the shape of events to come. I agree with Japanese Uncle with regard to a lack of a solid manufacturing base and would like to add in the alarmingly high number of people in this country who are directly of indirectly employed by the state and funded through taxation.
3. Japanese Uncle said...
enuii:
There are a number of underlying factors in the UK economy to support prediiction of eventual deflation rather than inflation, including the influx of foregin work force. In the 1980's, Japanese graduates first salary was skyrocketing quite like what we see in UK. Miso-soup (featuring lobster) costing 40 pounds a bowl was the talk of the town, quite like the 80 pounds sandwitch availabvle at Selfridge. Look what is going on in Tokyo. Homeless men wearing Almani business suits scavenging the streets, which is what you will see in Soho in 2010, possibly.
Inflation is a staged pretext to raise IR, to prick the bubble, as I have long maintained. "THEY" who actually control the MPC from behind make trillions out of the misery of the millions struggling in a fluctuating, gambling, economy hopefully engaged in warfare, rather than stable constant society. ISA Jowell is not promoting casinos throughout the country out of her personal passion.
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4. sovietuk said...
Just think in a few years time, when the pound is worth nothing, we will be told "We have to manufacture now, the old service industries are dead and do not bring in foreign currency which we need. The way forward is manufacturing, forget the old ways these industries are long gone".