Thursday, Apr 17, 2008
Blast from the past: 2000
BBC News: Farewell to housing boom and bust
A clutch of recent data suggests the UK property boom is cooling.
One well-known economist believes that house buyers have now seen the last of rapid rises and falls in prices. Roger Bootle, of Deloitte & Touche, says house prices will now rise 4-5% annually, slightly higher than the general level of prices.
"The end of the boom and bust in the housing market will help to bring greater stability in the economy as a whole. After all the ups and downs of the past 25 years that would be a major prize to have won," he added.
Merrill Lynch's Michael Taylor said: "The lessons of the housing market boom and bust do appear to have been learnt ... double digit house price inflation does appear to be in the past."
Posted by little professor @ 08:38 AM (685 views) Add Comment
9 Comments
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1. Bug16 said...
Allow me to get this in here first:
"HAHAHAHAHAHAHAHAHAHHAAAAAAAAAAAAAAAAAAAA!"
Thank you.
:)
2. Colly_wolly said...
Ahh, the mythical "soft landing".
I wonder how much this guy gets paid, as I bet that the average commenter on this site does a more accurate job of predicting what will happen next.
3. layers said...
They may have had a point as it wasn't long after this that Eddie George deliberately inflated the economy with low interest rates - privy info that was never made public, so maybe they weren't to know either. Remember the Sky report on this a couple of years ago.
4. japanese uncle said...
Boom and bust will be for ever so long as the 'private' central banks that are independen of the voters are allowed to carry on doing their trick.
5. 51ck-6-51x said...
Boom & bust will continue regardless of central bank's independence or existence. These factors will simply alter the cycles to lean towards or away from political terms and/or speculator herds. So long as there are both politics and alienation asset bubbles will form and burst, it is a fundamental property of modern society.
After this bubble has truly deflated it will not be a real candidate for another bubble until the market has forgotten this one enough, most likely due to the bubbles in other asset classes that will come (Emerging Markets, FX, Commodities, et cetera - which have all had bubbles in the past, but their market memories are fading, and this bubble will help).
6. Rubberneck said...
Then a year later the WTC came down, the USA and UK went to war with Saddam and any predictions made by economists became irrelevant. I am taking anything said now with a pinch of salt and battening down the hatches.... thanking God I have kept the same car for 7 years and never bought any BTL properties. I take being called "tight" as a compliment now!
7. An Bearin Bui said...
It's tragic that he was proved wrong - if the housing market had just experienced 4% or 5% growth per year from 2000 to now, the average house price would be around 140k and we wouldn't be in the horrible mess we're in. What Roger Bootle failed to predict was the spread of liar loans and structured credit and destructively low interest rates that were left low for too long.
8. confused76 said...
MAUHA HAHHAHAHAHAHHAH HAHAHHAHH
9. Dark_horse said...
Googling "Roger Bootle" brings up some interesting (if slightly arrogant) results...