Friday, Jul 23, 2010
Going wrong with bricks and mortar
BBC Money Watch: How to Beat Tough Times 3
3 mins in. Over-priced assets in a falling market. :))))))))))))
Posted by doomwatch @ 02:45 PM (2192 views) Add Comment
8 Comments
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1. mark wadsworth said...
I love that series!
Sophie Raworth wears selection of brightly coloured coats which leave you guessing as to whether she's wearing anything underneath, but my personal favourite is the Chinese lady who pronounces "per cent" as "pruh shent". All her other "s" sounds come out normal, it's just "per cent" that she can't manage.
And the bloke who waves his hands in the air to explain plus and minus and assets and liabilities isn't bad either.
2. doomwatch said...
MW, I think your fascination with Soapy Sophie is detracting somewhat from this bubble market commentary !
3. Elpapasito said...
It is a remarkably bearish series, probably because that it stars Andy Verity, Paul whatever from Moneybox and our very own Financial Planner. They all are sceptical types.
I loved the piece about the BTL watchmaker which started with the usual "how clever this guy was to reinvest capital growth in properties into new deposits" so he now has 100 houses, but as the story went on his situation was redrawn as desperate, now that he is failing to cover his interest payments and dreading any move up in base rates. It was a cautionary tale indeed.
EP
4. str 2007 said...
mark
per shent
She must have been to the Sean Connery English School for that one.
She might be well educated but she has also based future house prices on past performance. 4 1/2 per shent a year I the she said. Doubling in value in 18 years.
Surely any educated economist should know you can't (or at least shouldn't) base future growth on past performance, especially when you factor in how that 4 1/2 per shent wa achieved over the last 40 odd years.
IE a gradual increase in income multiples + a gradual reduction in deposit requirement + double digit inflation in the 70's + restrictive planning laws + uncontrolled immigration + the introduction of Buy to Let + interest only options for mortgages + Self Cert loans + a reduction of base rates to 0.5%.
I'm not quite sure what she's thinking will spur the housing market on at 4 1/2 per shent per annum for the next 18 years.
5. nomad said...
I hate to be controversial but she definately says "shtock market" in her last sentence on housing.
6. tenyearstogetmymoneyback said...
4 1/2 per shent a year I the she said. Doubling in value in 18 years.
I can believe that..... -4.5% a year for the next nine, 0% for another five then 60% a year for the final four.
Thats the way it has always happened before. How many schoolchildren year olds are currently taking any notice of
economics. When they notice how cheap houses are in 2024 the whole thing will kick of again.
7. uncle tom said...
Regardless of pronounciation (how good's your Mandarin..?) - I find it amazing that someone described as an Oxford economist, presumably there to offer expertise in financial matters; can so confidently state that house prices will double in 18 years.
Yes, they have in the past; but their relationship to wages means that in real terms, they cannot do so again ..
- as any fule kno..
8. Hpc32 said...
Did anyone else wonder about the energy saving of £430 on an annual spend of £1,200 that we were told could be repeated annually? It's only going to take three years before you are paying nothing for your gas and electricity. Or the 9p curry sauce gimmick which is popular on shopping forums but a loss leader to draw you into one of the more expensive supermarket chains.