Friday, Apr 27, 2007
Excellent common sense article
Daily Telegraph: Up to our eyes in debt we can't see
Yet the experts still say, don't worry. Much of this debt is backed by property. House prices are going up; they always do. You know it makes sense. Really? Am I alone in not understanding hocus-pocus economics? How can houses, some of which are being acquired on mortgages of six times the buyer's salary, keep increasing in price at a rate of more than twice income growth? The numbers add up only if you want them to - and plenty do.
Posted by papabear @ 02:16 PM (177 views) Add Comment
4 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. confused76 said...
A very good article!!
Read the comments too. some are amazing stories about Spanish property.
2. Scott said...
As a country, we are definitely up to our eyes in something that has 4 letters and ends with t, besides debt.
3. sold 2 rent 1 said...
One of the best comments at the bottom:
"Apart from UK housing, which is a planning led supply shortage speculative bubble which needs to be very slowly deflated in real terms over a very long period, the world is awash with oversupply, with China and India investing massively in productive capacity which they cannot hope to fill without Western consumers borrowing their massive export earnings to spend on their exports, because they do not have enough wealthy and credit worthy consumers of their own.
Meanwhile unemployment in Europe is hideously high. The risk remains deflation, not inflation. And if the monetary authorities stick to rigid inflation targets, let alone rigid monetarist targets, in response to supply price shocks like energy prices, then a huge deflationary crisis is just waiting to hit.
Such a process could justifiably be described as a form of usury and the bankers ramp and would be morally bankrupt as well as economically suicidal and politically crass. The world now bears no resemblance to the inflationary situation of the seventies. Wage inflation in the UK net of City bonuses is low and falling."
4. enuii said...
I like the last paragragh of S2R's quote, which reads to me that Inflation is OK as long as Wage Rises are Low or FALLING as long as the CITY does OK.
Tears what is left of hair out and has another coffee, puts Kaiser chiefs CD on and listen to the lyrics 'Everything is Average Nowadays' and 'I want to Retire and get the Man off My Back'.