Thursday, Oct 30, 2008
With economists like this, no wonder the banks are in a mess ...
BBC: Reaction to falling house prices
From the quotes: JAMES KNIGHTLY, ECONOMIST AT ING: "This wealth destruction, coupled with growing concerns about negative equity, is likely to keep consumer confidence very weak." Wot? When a house burns down, that is wealth destruction. If its market value changes, that is neither wealth destruction nor wealth creation.
Posted by mark wadsworth @ 02:53 PM (990 views) Add Comment
14 Comments
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1. Collywolly said...
"Wealth destruction"
So all we have to do is imagine something is worth more, and we generate wealth. Shows these people are living an an imaginary world.
2. 51ck-6-51x said...
Economists tell you tomorrow why what they did not predict yesterday happened today. (can't recall the source of this)
And whilst on 'definitions':
Economy: Purchasing the barrel of whiskey that you do not need for the price of the cow that you cannot afford. (Ambrose Bierce's Devil's Dictionary)
3. letthemfall said...
In fact wealth is being destroyed in America, where empty houses are deteriorating because no one wants them and there is no one to maintain them. This also happening over here with some of the empty flats.
4. mark wadsworth said...
LTF, we have in the region of one million empty and second homes in the UK, I agree that this is wealth destruction, but this we've had this state of affairs for years, even when prices were rising. In any event, J Knightly was giving his "reaction to falling prices".
5. rm96696 said...
Wealth destruction? Are they knocking down the housing stock? Otherwise, the houses are always the same.
6. Chilli said...
Any guesses on how many homes there are in the UK? 20 million?
7. malct said...
wealth transfer
8. karlos said...
"Many vendors are being forced to lower their asking prices by as much as 13% in some regions to achieve a sale, or alternatively are placing properties in the rental market until house prices recover."
Vendors need to be slashing prices by 20% and more. Other owners could be in the rental market for upwards of 5 years...
Interestingly, I saw an EA's window in Corby with about 20 properties in its front window. About half of them were emblazoned with "Realistically priced for a quick sale!".
(???) What is going on with the other half?
9. titaniccaptain said...
Why didnt they ask me my opinion???????????????????????
It would be read...........
Titanic Captain
Captain of a lovely ship heading for new york that will never sink..........
BBC stooge :- So T.C.what is your reaction to falling house prices?
Titanic Captain :- I hate you and all your friends at the BBC because they are a bunch of government stooges for Brown's propaganda machine
BBC stooge :- Thats not the question I asked
Titanic Captain :- I still hate you...............but I will say....I am very happy about falling house prices it is a great thing and cant wait until I can buy a 4 bed in a lovely part of the country for 20 Grand
BBC stooge :- Your living in La La land house prices will never fall that much
Titanic Captain :- Shut up you peasant try thinking outside the box
BBC stooge :- Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute Does not compute
Titanic Captain :- :-)
10. debtfree said...
everyone should remove all cash and stop using banks.
destroy them, take things into our own hands. without the banks we wouldn't be in this mess and be worrying about the cost of housing and wealth transfer to the rich.
by leaving your pay in the bank, using a credit card, setting up direct debits. etc. you are only supporting the system that is screwing you.
take action and cause a reaction. until you do, nothing will change.
11. titaniccaptain said...
Thats the spirit Debt free................................
12. malct said...
yup debtfree, I'm onboard
13. Mark Wadsworth said...
@ Chilli, there are 24 million households and about 4 million in social housing, so 20 million seems about right.
14. malct said...
Quote from Lord Acton
"The issue which has swept down the centuries
and which will have to be fought sooner or later
is the people versus the banks."