mayday

Shock horror !!! UK house prices fall 35% !!! Could this happen , well how about it HAS happened in the last 2 years since the june 2004 peak . As measured in ounces of gold it takes to buy the average UK house - the amount has fallen from 689 ozs to 450 ozs. This made sound ludicrous to some but I believe it is a valid measure of how nominal prices mask inflationary tendencies that even governments are trying to pretend don't exist. They print money endlessly - people , banks, corporations and Governments balloon their balance sheets and nominal prices of everything rise - it is no surprise that houses can always go up. But relative prices are important - houses crashed in 1974 by 40% in real terms but barely moved lower in nominal terms . Most people aren't equipped to cope with real prices because there is no analysis , information or transparency available. Also to take advantage you need to be able to transfer money between the main asset classes - Property,Equity,Bonds,Gold and Cash.

Shock horror !!! UK house prices fall 35% !!! Could this happen , well how about it HAS happened in the last 2 years since the june 2004 peak . As measured in ounces of gold it takes to buy the average UK house - the amount has fallen from 689 ozs to 450 ozs. This made sound ludicrous to some but I believe it is a valid measure of how nominal prices mask inflationary tendencies that even governments are trying to pretend don't exist. They print money endlessly - people , banks, corporations and Governments balloon their balance sheets and nominal prices of everything rise - it is no surprise that houses can always go up. But relative prices are important - houses crashed in 1974 by 40% in real terms but barely moved lower in nominal terms . Most people aren't equipped to cope with real prices because there is no analysis , information or transparency available. Also to take advantage you need to be able to transfer money between the main asset classes - Property,Equity,Bonds,Gold and Cash.