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PhilT

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About PhilT

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  1. Oh dear. Have you actually read Garrett Hardin's article? He proposes effective regulation of the commons, not its privatisation. This is a common misconception. The "Tragedy of the Commons" thesis advocates sustainable development and environmental protection, not neoliberal free market economics.
  2. In these troubled times, the Government and the opposition parties are fond of being seen to propose measures to "boost" the flagging housing market. So, for example, we have stamp duty holidays, HIPS scrapping etc. But what exactly does "boosting the housing market" mean? Does it mean boosting lending and transaction volumes (and saving the hides of many EAs) or does it mean reigniting HPI (or at least stopping HPC in its tracks)? It bugs me that politicians, who stood by and allowed HPI to spiral to absurd levels, will scrabble around to try to stave off a natural and necessary correctio
  3. I found a couple of interesting quotes in a book about the credit crisis (The Gods That Failed). What is striking is the parallel between the rise of financial speculation in the 1920s which led to the Wall Street Crash of 1929 and the Great Depression, and the credit and housing bubble that has been inflating in the last 10 years or so which has led to the current credit crisis. John Maynard Keynes, National Self-sufficiency, 1933 Franklin D. Roosevelt, Inaugural Address, March 4, 1933 These statements could easily be applied to the current situation in financial markets. It seem
  4. Starting with "Easy" Alan Greenspan's policy of keeping US interest rates at excessively low levels (1%) in the early 2000s, and continuing with Bernanke's slashing of rates from 5.25% to 2% following the sub-prime crisis, the US Federal Reserve is clearly the friend of irresponsible lending and credit/housing bubbles. Now the Fed has been and wants to continue bailing out (ultimately at taxpayers' expense) the very institutions that helped to cause these bubbles, e.g. Bear, Fannie and Freddie, and generally the investment banks and others through various other measures such as opening the di
  5. Don't get me wrong, I agree that Britain is going down the tubes. That's why I left 2 years ago! Just pointing out that it's not (yet) an irrelevance on the world stage.
  6. Largely agree with what you say, but do remember that Britain is still the World's fifth largest economy.
  7. BBC online: UK jobless level increases again This undermines one of the last remaining points the VIs use to talk up house prices - "The housing market is supported by strong fundamentals, including low unemployment, blah, blah..." Wonder when the last time was that earnings growth was the same as or less than CPI, let alone RPI? Talk about decline in living standards...
  8. Clothing was down 8%. Without this, maybe CPI would have been over 4%? Clothing must have a large weighting, given that food, energy and most other areas are well up. When the price of clothing from China and SE Asia starts to rise, CPI will go through the roof.
  9. I think your observations on this thread are sadly true. In the last 50 years or so British society as a whole has become more stupid, greedy, selfish and lazy. At the same time, we have become less industrious, inventive and enterprising - virtues for which we were once admired throughout the world. Unfortunately, this trend seems to be accelerating.
  10. This is an interesting letter, from Brown to King in 2004. Seems that Merv will only have to write another letter in 3 months' time (assuming CPI remains above 3%, which is almost a dead cert).
  11. When was the last time CPI was as high as 3.3% (or is this the highest it has been since CPI replaced RPIx)?
  12. Another way of looking at it is to ask "how far back in time will prices go"? Taking, say, the Nationwide index in nominal terms (for simplicity's sake), I'm interested in how far the coming trough in prices will take us back in time. At the moment we seem to be back to around December 2006. I personally would like to see nominal prices fall back at least 5 years.
  13. Perhaps the thread title was intended to be a statement rather than a question, i.e. the bulls "were" here but now are not here.
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