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House Price Crash Forum

wren

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Everything posted by wren

  1. What does differentiation in the classroom mean?
  2. It makes bankers richer which is what the economy is for: to serve the bankers.
  3. Sounds like a cafe or restaurant rather than a pub.
  4. Yeah, all the bigheads are a serious drag. Arrogant swine are no use in hard times.
  5. How do property prices and stock prices going down affect the monetary base?
  6. Even if they become unemployed it's not as if the family are going starve or freeze to death. Benefits are there to prevent that. If he believes the Tory party is better he should still vote for them. Tory voters shouldn't give up so easily. Good article.
  7. A watched pot never boils. Everybody should leave this site for 6 months and go and find something else to do. When we come back it will all be over.
  8. 2008 to 2009: the USA dropped about 60% while the UK dropped 10% or less. Meanwhile China doubled. Amazingly UK volume in 2009 was greater than the whole USA. The last UK suckers are being sucked in for the kill right now.
  9. What sort of people buy newspapers these days anyway? I suppose if you have a long train journey to sit out, but otherwise I would never bother. I do admit to subscribing to a fortnightly newspaper, but it is special. It is for adults with learning or reading difficulties - it's in Finnish before you lot start on me - and I like to support it.
  10. In Finland unusually heavy snowfalls have caused property to fall, so it's true. One sports centre collapsed entirely injuring eleven people (luckily none very seriously). Too much snow on the roof. Edit: it's
  11. The problem is that employees do not have pricing power, so I do not see where wage inflation will come from. Even the New Labour maniacs are unable to significantly inflate public sector salaries, as they face the necessity of public expenditure cuts or else it's a currency crisis followed by more draconian IMF cuts.
  12. There was a housing bubble in the late '80s. People priced out, people thinking that they'd have to by right then or they never would be able to. I remember reading a paper (possibly a local one) saying that if price rises continued at the same rate the average house in South-Eastern England would cost a miilion pounds by 2000. I smiled to myself thinking that that was a true statement but note the "if". Then a crash came partly moderated by general inflation, but plenty of people who bought into the bubble were in negative equity. Apparently some were stuck unable to move for 10 years due to negative equity. The present house price bubble is not unique. The generations you criticise went through one just 20 years ago. You have not been singled out for harsh treatment. You are not special. You are ignorant of quite recent economic history or else fail to think about it.
  13. This sounds very plausible. I suppose the bank is hoping that the friends don't fully realise that they stand to lose if the house price drops and are in effect as standing as a partial guarantor.
  14. I knew one guy in the late '80s whose parents gave him some thousands to help him get a house near the peak of the bubble. A few years later the father was sick at having lost a lot of his life savings. So it did exist then, maybe not so much as today.
  15. To those about to buy, we salute you. I hope it works out okay for you.
  16. The existence of the unemployed helps keep the cost of labour down. If you're an employer that's a very worthwhile service.
  17. The problem with derivatives is that one major failure can create a domino effect. There is no central clearing house or database where all the contracts can be identified and cancelled out appropriately. In 2008 a couple of the big banks spent a nervous weekend working out all their contracts which mutually cancel.
  18. I'm always suspicious of any economy described as a "tiger". So an Irishman in the article is quoted as saying that the Irish went mad. No wonderful, brave new economy, just a financial mania. And the Irish answer to economic difficulties seems to be to leave for another country. At that rate they will never build a good economy at home, surely?
  19. I'm a gold bull strictly speaking, not a gold bug (whatever they are). Having studied the long term history of the purchasing power of gold I am aware that historically it has done well during deflations (not so well in inflations). However, since 1971 no paper currency has been backed by gold*. So during the '70s inflation gold did provide protection against inflation. As you know gold is doing well against houses. I reckon 100 ounces per average house will come in a few years. *On edit: correction, if I remember right the Swiss franc was still partially backed by gold until 1999.
  20. How are mortgage holders in Eire who bought into the bubble faring? Okayish thanks to low interest rates? Many repossessions?
  21. Gold is at a new record high in EUR and GBP. GBP 755.12 EUR 832.68 USD 1141.60
  22. Maybe they are just thick when it comes to housing bubbles, like the rest of the herd.
  23. Just imagine if bonds were issued denominated in ounces of gold. They could be called gilts.
  24. What if a famine occurs in Mexico (there were food protests 2 years ago) and millions flood into the southern US States? I wonder if that might be what the camps are for.
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