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House Price Crash Forum

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The population is ever growing, creating demand for resources Housing, in particular land will all ways be highly valued. Many have left the UK for economic and life style reasons there number quickly replaced by others for exactly the same reasons.

Global trade in people is nothing new. I think it reaches its zenith with Nations poaching athletes with the lure of citizenship so that they will compete for them. Governments no longer look at their population as brothers and sisters who share the same cultural believes, People are considered no more than an economic unit. Throughout history over population has all ways led to a drop in the standard of living. Wealth is having the necessary things to ensure survival; Countries that have all the resources to look after their own needs will prosper if there is good government.

Governments worldwide have had no choice but socialize banks or face finantual ruin. Money that is (loaned – given) to banks has now gone to any where it can make more money. Mums and dads with cash are wondering just what to do. Will there be a great asset grab? It would appear this is what is driving the market right now. Money is now moving to “safety†gold, commodities and bonds (not U.K .and U.S.).The result is the average citizen’s future is now indebted, higher tax and more effort for less reward are the new order.

The value placed on a country’s currency is a reflection of the confidence of that state. World Governments are inflating the money supply while cutting their own expenditure and capping public wages, by means of weakening Labour Unions and selective immigration.

Inflation is a direct tax on people who have saved.

The “credit crises†is not a lack of money but rather a shortage of suitable borrowers who are willing to speculate. The perception in the community is one of pessimism, why buy something that’s dropping in value? Banks are demanding greater deposits on housing loans the rational is that should the property drop in value and the owner default the bank will not lose. Companies are issuing more shares not to expand operations, but to retire debit, again the thinking is negative “how will we pay of debits with our sales dropping?â€

Interest rates have been cut to historic lows in order to get things going again. Government bonds are now being offered at higher interest rates as investors worry about credit worthiness. At some point in time interest rates will go up and governments will have no choice in the mater, as investors demand reward for risk.

As you think so you are: The same cognitive forces that drove the bubble are now working in reverse. For the next decade house prices will drop and stagnate. However the basic needs food clothing and shelter will always be sort after at any price. Imagine high interest, high unemployment, high cost of living and eventually high house prices.

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