Thursday, Aug 30, 2007
Rose-tinted glasses of an ex-MPC member.
Telegraph Online: Business profile: MPC 'institutionally on the side of higher rates'
Stephen Nickell isn't a noshbag and, since departing the MPC, has been running the National Housing and Planning Advice Unit for Groondon Broone. Basing his theory on supply and demand, houses prices will eventually reach 10x average salary and there won't be a recession. Rather scary for a bloke who used to sit on the MPC. Provided as the alternative view.
Posted by talking rot @ 05:09 PM (542 views) Add Comment
7 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. enuii said...
The level of detachment from grim reality of our NeuLiebor masters beggars belief.
2. Alan said...
Diana Choyleva of Lombard St Research (see HPC Predictions page) thinks asset price values will be substantially undermined as result of the sub-prime fallout:
http://www.lombardstreetresearch.com/
...Provided as an alternative view.....posted this very afternoon......!
3. Scott said...
10x salary. It is a mathematical impossibility. Opinions don't even come into it.
4. Bloo Loo said...
"we're all getting richer" tell that to the POA
5. stillthinking said...
Surely we can consider the possibility that this guy is feeding an approved line.
Am I seriously meant to think that he has opened his heart on things. The way things stand at the moment sentiment is all important. What exactly does he say? That Mervyn King will beat inflation at all costs... so beware everybody. That the long term trend for house prices is to 10x average salary? Who is able to pay that much?
Is it not much more likely, that the fact that this punter has been wheeled out, is that sentiment is about to turn.
The prison officers just walked out over a derisory pay rise, a real loss.
I am by no means a conspiracy theorist, but lying to control sentiment seems to be a fair and rational act, as Lamont pretended right up to the last minute that there would be no withdrawal. Just a poker face really.
Although extremely worrying that this dissemination is considered necessary. Nobody in their right mind would pay 10x their annual salary to purchase a small flat in the UK, aside from the fact they can't get the loan anyway.
This is a bad sign in my opinion. Will Brown control prison officer's pay? Probably not. They just walked out on the job. Brown looks weak to me. Plus wheat.
The only snag, as has been mentioned before, is that I and most people here wanted affordable housing, not a smashed unequal country.
6. su said...
enuii. I thought Gordon Brown was ditching New Labour in favour of Old Labour. I could be wrong, though!
7. stillthinking said...
The last time the city issued bonuses, a thousand people got at least a million pound bonus each.
You don't have to be Einstein to work out that to control wages to keep a balance, a million people have to lose a thousand each. Thank God those million people voted Labour.
There is Justice !