Can The Government Succeed In Propping Up The Property Market?

[Si1]

That assumed there wouldn't be another baby boom and declining birth rates

Since 2004 we have seen a new baby boom caused by immigration, I wonder what the effect of the new boom will be?

I imagine they will start being economically productive and consuming housing in approx 15-20 yrs time...

[eric pebble]

yet again, see:

from the full model:

http://www.federalreserve.gov/pubs/ifdp/2005/847/IFDP847.pdf

"The Baby Boom: Predictability in House Prices and Interest Rates"

Brilliant. Says it all. A B grade GCSE student could have drawn that graph having seen & understood the LIAR LOAN phenomenon.... [see below].

[Bearfacts]

when you can invent money i think you can work all kinds of things, so far the cost of brown's election campaign is something like £800bn, and he's still going to lose, but worse the whole country loses because of the mess made with bubblenomics.

its spend today, worry about it after the next GE. it aint rocket science.

just shows how dumb or apathetic Labour think voters are.

You have hit the nail on the head. I had always factored into my considerations that the central banks and government would behave in a logical, responsible and moral manner with a view to long term economic stability whilst maintaining a policy of 'sound money'. They have of course done the complete opposite with a policy of printing money and slashing rates to zero and then throwing large piles of borrowed cash at the housing market, this unnerved me as I realised I had no idea what impact this might have on the economy/ housing market. Brown and Darling seem absolutley determined to do whatever it takes , however reckless, however immoral, however damaging to long term stabilty, however unfair to prop up the housing market and therby get re-elected.

I hate the bastards more than ever. I may now be a homeowner ( well building site really ) but I want to see prices come down to sensible, fair and sustainable levels. I dont want my children treated as slave labour to pay for the un-earnt lifestyle of the boomer generation ( of which I am one - albeit a relatively young one !).

[Georgia O'Keeffe]

I'm still uneasy about this.

Even if it were possible to educate UK owners to an understanding of the ills of HPI, they would still come out in droves to vote for the party that gives it to them.

Worrying times.

They'll be no need to educate anyone to the ills of HPI or indeed credit, the beauty of markets is that they will educate everyone naturally. The biggest Housing, stock market and credit bubble of all time will inevitably be followed by the biggest housing crash , credit and stock market collapse of all time.

By the end of it whenever it completes 5,10, 20 or 30 years (who knows although i favour 20 years) and all asset prices have gone nowhere but hugely down in real terms over the duration only the very few will want to own houses, take out credit or want to go near the markets, then after another 50 years or a few generations whoevers around will start it all over again as they'll believe they are much smarter than the previous generations and "it will be different this time"

Edited July 27, 2009 by Tamara De Lempicka