Monday, Oct 08, 2007

Hahahahahahaha!

Irish Independent: Construction slowdown may boost house prices

"House prices are a simple function of supply and demand," said Mr McArdle.

This economist is trying to claim that builders aren't building as many houses because they're trying to create demand and that this will increase house prices! Or, it could be because the MASSIVE oversupply meanse that there isn't any point in building. They'd have to demolish a lot of houses to even make a dent in the oversupply from lack of cheap credit.

Posted by disillusioned @ 11:30 AM (558 views) Add Comment

6 Comments

1. planning4acrash said...

Yes, they are a function of supply and demand, but not simple supply and demand. This man forgets that consumers do not choose the quantity of money available, the banks do that. Property prices relate to the quantity of M3 money supply pumped into the housing market by banks / houses for sale. He overplays the role of housebuyers.

Monday, October 8, 2007 01:23PM Report Comment
 

2. Lem said...

Sheer desperation coming through over here now. With 25% of houses unoccupied and 25% employment in the construction industry Ireland's going to get hit hard. Just a comment on the spin that happened here, 18 months ago there was hype going round about a new development being built here, and how you'd have to queue to buy a house. People were there from 5 o'clock in the morning. There are 2 houses still unsold from the 14 that were on sale.

Monday, October 8, 2007 01:28PM Report Comment
 

3. cyril said...

also, as any fule kno, demand for housing is elastic.

Monday, October 8, 2007 02:27PM Report Comment
 

4. pecker said...

Surely we should have a comedy section these sorts of articles can go in??? I expect more of thse types of articles going forward!

Monday, October 8, 2007 02:35PM Report Comment
 

5. Yorkshireman said...

Mr McArdle. I believe you are living in hope. I expect you will die in despair.

Monday, October 8, 2007 03:17PM Report Comment
 

6. daft boy said...

I do love irish paddy jokes. What happened to frank carson and that bloke with the wellies with left and right on em. Nice to see paddy humour making a comeback after the troubles.

Monday, October 8, 2007 10:55PM Report Comment
 

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