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Different From 1990's Crash?

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I know that there are some differences and some things the same regarding the current HPC and previous ones but given the amount of money that the governments pumped into the system for THIS recession. Is it possible that things won't go the same way as the other crashes in the 80's and 90's? Is it possible that we are going to see things stabilising a lot faster now than previous years? :unsure:

What's your thoughts on the "What if" scenario of "What if prices for houses do stay the same now and maybe even rise again earlier than we all thought"

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Are you having doubts subby?

Yes, this will be totally different from the 1990's crash. The 1990's crash was mostly located in the south-east of England. This house price crash is global.

Just as I was certain that house prices here would fall by more than 50% nominally. I am also certain that the house price crash is not over yet.

There are 3 things I expect to see in the near future -

1. Higher interest rates

2. Higher taxation

3. Higher costs if living

None of those 3 things are positive for house prices. This is not the time to be swapping your cash for a big debt.

We are currently seeing a temporary pause, as the banks and media manage to con a few suckers (with large deposits) into the market. Good news for people like you and me, as we will have less competition in a few years. ;)

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Not to mention that in 1990, it was a housing bubble. The difference this time is that, the housing bubble is a symptom of a huge credit bubble, and is not localised to housing, but stocks, consumer credit, corporate credit manifesting itself initially in a systematic banking crisis. Over the last 30-40 years the number of systemic banking crisis in different regions has increased exponentially...since the central banks and governments always try to inflate and resist recessions. Also, the central bankers and governments seem to follow debunk economic theory in tackling the problem, aka the keynesian Economic Theory, where governments step in to try and fill the "output gap" in the private sector, as it cuts back, the government try to spend to fill this gap,using taxpayers money of course. This one is too big. Just as the housing bubble was a symptom of a credit bubble, falling prices are a symptom of the bursting of that credit bubble.

Edited by VedantaTrader

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Are you having doubts subby?

Yes, this will be totally different from the 1990's crash. The 1990's crash was mostly located in the south-east of England. This house price crash is global.

Just as I was certain that house prices here would fall by more than 50% nominally. I am also certain that the house price crash is not over yet.

There are 3 things I expect to see in the near future -

1. Higher interest rates

2. Higher taxation

3. Higher costs if living

None of those 3 things are positive for house prices. This is not the time to be swapping your cash for a big debt.

We are currently seeing a temporary pause, as the banks and media manage to con a few suckers (with large deposits) into the market. Good news for people like you and me, as we will have less competition in a few years. ;)

I personally have no doubts mate ;)

I was just playing devils advocate and chucking an EA's theory into the mix. Heard her talking about it on her phone on the bus. She was adamant that her boss would be soon hiring staff as she was sure it was about to get busy again in the EA shop due to the government intervention :rolleyes:

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I personally have no doubts mate ;)

I was just playing devils advocate and chucking an EA's theory into the mix. Heard her talking about it on her phone on the bus. She was adamant that her boss would be soon hiring staff as she was sure it was about to get busy again in the EA shop due to the government intervention :rolleyes:

The big give away is that you heard the conversation on the bus , where did all the X5's go ? :lol::lol:

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