Saturday, Feb 24, 2007

The boom is over, the price must yet be paid

Guardian: The boom is over, the price must yet be paid

In some ways the housing market has resembled a drunk standing at the bar in some back-street boozer.
With every drink he has, people think he must soon stagger and tumble over. But he doesn't. He keeps drinking and he remains standing. He stays up for so long that eventually people decide they were wrong to think he would fall over.

But then, just as they decide he will never fall, he takes the last drink and finally tumbles to the ground.

Posted by tony blair @ 04:39 PM (159 views) Add Comment

10 Comments

1. harold said...

Welcome aboard Tony! Glad you've seen the light. Now about you leaving No. 10...

Saturday, February 24, 2007 04:56PM Report Comment
 

2. enuii said...

Tony, are you criptically talking about your former bestest mate Gordon and his miracle economy by any chance?

Saturday, February 24, 2007 05:46PM Report Comment
 

3. sirgoogle said...

Tony. Welcome. I hope that you will become a regular contributor and give us some insights into Crash Gordon's economic policy.

On the article. The following is worth reflecting on and should be recited as a HPC mantra when countering the "HPI-is-good" crowd from the chattering classes:

"We do not get richer as a society from rising house prices. We merely transfer a burden to future generations who have to pay more for their houses. We shut out the have-nots who cannot tap their parents for a deposit. We lock in a permanent underclass who have no hope of ever getting on to the property ladder."

Saturday, February 24, 2007 07:14PM Report Comment
 

4. larry pickleman said...

And when the permanent underclass becomes hopeless, they'll come banging on your door in the middle of the night....

Saturday, February 24, 2007 09:13PM Report Comment
 

5. Nohpc said...

Or rather than falling over the drunk will fall asleep on a chair, safely propped up against a wall until he sobers up a little and feels like drinking some more.

Saturday, February 24, 2007 11:09PM Report Comment
 

6. geed said...

Good article, though it been posted before, 5 days old. Get with it President Blairs

Sunday, February 25, 2007 08:04AM Report Comment
 

7. Bearback said...

I can't believe Tony Blair has joined the site, amazing

Sunday, February 25, 2007 11:49AM Report Comment
 

8. Surfgatinho said...

"But Danny Gabay, head of Fathom Consulting, says falling inflation this year is likely to push real interest rates up sharply to levels not seen for many years"
Could somebody explain what this means?

Sunday, February 25, 2007 02:00PM Report Comment
 

9. bidin'matime said...

>Could somebody explain what this means?<

The 'real' interest rates is the actual rate less the inflation rate. If both are the same, the real rate is zero (money invested does not increase in buying power). So if rates rise, then inflation falls, the 'real' rate rises further. Eg 5.25% - 2% = 3.25% real rate, compared to (eg) 5% - 3% = 2% real rate not long ago.

Sunday, February 25, 2007 10:37PM Report Comment
 

10. Chilli said...

Tony!!!!!! How much for a peerage? I've got about 20 quid in my piggy bank. I do however have access to a few quid on credit. Do you take Visa? Mastercard?

Monday, February 26, 2007 10:07AM Report Comment
 

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