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RichM

07-09 Didn't Happen, There Was No Crash

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I am coming to the conclusion that housing never crashed in the previous few years. It was just a damp squib. People still believe in property in a crazy way. People are still happy to lavish hundreds of thousands on flats (a distant in-law's modest 2-bed flat in Hampstead just went for 900K!). Sure, selling prices changed for a bit, but property is still the premier asset class in this country.

The love for bricks and land never went away. The populous doesn't care for boring stuff like "productivity", or "budgets", or "inflation", or "debt", or "pensions timebomb", or "fiscal crisis", or "unemployment". That's too negative and complicated. It's "mortgage available = good, no mortgage available = bad". The naught bankers turned the taps off, spoiling all our fun. How mean of them to pay themselves bonuses while I can no longer get 8x my salary for a BTL. How downright rude.

It's a good thing that the economy will pick up soon, otherwise people really might start to wonder if this property business is all it's cracked up to be.

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I am coming to the conclusion that housing never crashed in the previous few years. It was just a damp squib. People still believe in property in a crazy way. People are still happy to lavish hundreds of thousands on flats (a distant in-law's modest 2-bed flat in Hampstead just went for 900K!). Sure, selling prices changed for a bit, but property is still the premier asset class in this country.

The love for bricks and land never went away. The populous doesn't care for boring stuff like "productivity", or "budgets", or "inflation", or "debt", or "pensions timebomb", or "fiscal crisis", or "unemployment". That's too negative and complicated. It's "mortgage available = good, no mortgage available = bad". The naught bankers turned the taps off, spoiling all our fun. How mean of them to pay themselves bonuses while I can no longer get 8x my salary for a BTL. How downright rude.

It's a good thing that the economy will pick up soon, otherwise people really might start to wonder if this property business is all it's cracked up to be.

Housing has not crashed when measured in UK pounds. However, when measured against other currencies it has declined in price by at least 30%. The powers that be are propping up the nominal price of crumbling UK rabbit hutches by devaluing the currency it is measured in. Even this will fail, as without a job no one is buying, or paying rent for that matter. The globalists want you in debt, that is their plan. They have used their media machine to sucker the fools into believing that you can't go wrong with bricks and mortar. Property as an investment only works when the debt is eroded by wage inflation. There is no wage inflation, and their policy of devaluing the pound will end up sending the economy into a depression as folk cut back on buying imported non essentials as they become more expensive.

Stay tuned as enter a new phase, a phase where houses will be the last thing you will be worrying about.

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Housing has not crashed when measured in UK pounds. However, when measured against other currencies it has declined in price by at least 30%. The powers that be are propping up the nominal price of crumbling UK rabbit hutches by devaluing the currency it is measured in. Even this will fail, as without a job no one is buying, or paying rent for that matter. The globalists want you in debt, that is their plan. They have used their media machine to sucker the fools into believing that you can't go wrong with bricks and mortar. Property as an investment only works when the debt is eroded by wage inflation. There is no wage inflation, and their policy of devaluing the pound will end up sending the economy into a depression as folk cut back on buying imported non essentials as they become more expensive.

Stay tuned as enter a new phase, a phase where houses will be the last thing you will be worrying about.

Pluto, long time no see, good to hear from you...that last statement sounds almost like it will come to pass. ;)

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There has been no crash because we have Ponzi Brown in charge who really should be awarded the noble prize for economics for his genius.

We faced a debt crisis and he solved it by creating more debt to generate growth. It appears the recession will be over next month. I for one will rejoice.

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Without wanting to point the obvious out but housing HASNT crashed between 07 and 09: I dont believe that many people think otherwise. We had a credit crunch that we are still having though.

Edited by Neil B

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indeed, ask someone who bought in 2007 and now needs to sell.

The credit crunch is nowhere near over.

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Without wanting to point the obvious out but housing HASNT crashed between 07 and 09: I dont believe that many people think otherwise. We had a credit crunch that we are still having though.

That doesn't read well.

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In other news, QE rations UP 25% per person.

Reporting failure to receive QE is considered an act of treason and punishable by death.

Be happy.

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My point is, regardless of how much prices have fallen, most people seem still to think that it was a blip, the economy is sound really, and property is still the way forward. In 1991 owning property hurt you. Now you just have to hang on before the blue skies are here again.

Stepping back from it all it seems that the world, particularly the UK, is in deep doo-doo, but that message has not sunk in at all. Hence my view that "no crash", at least in the social or psychological sense.

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indeed, ask someone who bought in 2007 and now needs to sell.

The credit crunch is nowhere near over.

I hear so many conversations on the train about people not being able to sell property it's frightening. I try not to guffaw when they quote estate agents assurances that the market will pick up in a bit.

It's almost replaced the weather as the default topic of conversation.

Also a lot of conversations about having just been to/going to a job interview.

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Housing has not crashed when measured in UK pounds. However, when measured against other currencies it has declined in price by at least 30%. The powers that be are propping up the nominal price of crumbling UK rabbit hutches by devaluing the currency it is measured in. Even this will fail, as without a job no one is buying, or paying rent for that matter. The globalists want you in debt, that is their plan. They have used their media machine to sucker the fools into believing that you can't go wrong with bricks and mortar. Property as an investment only works when the debt is eroded by wage inflation. There is no wage inflation, and their policy of devaluing the pound will end up sending the economy into a depression as folk cut back on buying imported non essentials as they become more expensive.

Stay tuned as enter a new phase, a phase where houses will be the last thing you will be worrying about.

Great post.

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My point is, regardless of how much prices have fallen, most people seem still to think that it was a blip, the economy is sound really, and property is still the way forward. In 1991 owning property hurt you. Now you just have to hang on before the blue skies are here again.

Stepping back from it all it seems that the world, particularly the UK, is in deep doo-doo, but that message has not sunk in at all. Hence my view that "no crash", at least in the social or psychological sense.

Joseph Goebbels, Hitler's Nazi Propaganda Minister, stated that to continue to tell folks lies you must shield them from the effects of the lies. This is what you are seeing today. The price of sub-standard crumbling piles of brick has to be seen as "you can't lose" while the currency and everything else goes to shit around it. If the fail, then the key to the globalists plan of life slavery for you (debt) will be challenged. They will fail, as without jobs there will be no buying of houses, without jobs there will be no paying of ridiculous rents, without jobs everything falls apart.

Those with mortgages or life time debt balls and chains, don't realize they are about to be boiled alive as wage deflation does not erode their debts, infact they make them so much worse. Of course, in typical fascist style, they are trying to socialize the suckers mortgages by stupid low interest rates, QE easing, stamp duty holidays, and so on. All this will fail.

The next phase of this collapse will reduce grown men to tears.

Edited by Pluto

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I am coming to the conclusion that housing never crashed in the previous few years. It was just a damp squib.

Where's your staying power? You joined in Aug 04, I see, 3 years before the top. Barely 2 years in to the bear and you've given up? The bull we've just left lasted 25 years (equities).

It is amazing how the market will turn nearly all bears bullish just before it turns.

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Justyield - Hey, I've persauded my wife (and myself!) not to invest her inheritance just yet. I am not saying it won't crash, I am saying it hasn't crashed yet - property is still an overly treasured asset. Heaven knows when the next big fall will come. I just wonder when people will wake up and realise what steaming piles of poo we are currently in. Hopefully soon.

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I spoke to friends of mine in their 50s, who don't have any recollection of a housing crash happening in the early 90s. They think I'm making stuff up.

there really wasnt a crash in the 90s. all that happened is property prices fell slightly, then stagnated for 1o years as wages rose. this time there is no scope for wage rises. it could be a prolonged period of stagnation in property, but if a deep recession fuels unemployent to crisis levels property will be forced to crash and burn.

i believe owners feel this stagnation is here to stay, and thats fine as long as wages continue to rise.

which they will not.

also whats very different than the 90s, is the amount of borrowing vs earnings. this puts a lot more pressure for owners to keep hold. seems like since 07 we have seen some stagnation and mild falls. not near enough to correct the imbalance.

i would say the real panic crash has yet to even start.

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Guest pioneer31
I spoke to friends of mine in their 50s, who don't have any recollection of a housing crash happening in the early 90s. They think I'm making stuff up.

That'll be the altzheimers

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there really wasnt a crash in the 90s. all that happened is property prices fell slightly, then stagnated for 1o years as wages rose. this time there is no scope for wage rises. it could be a prolonged period of stagnation in property, but if a deep recession fuels unemployent to crisis levels property will be forced to crash and burn.

i believe owners feel this stagnation is here to stay, and thats fine as long as wages continue to rise.

which they will not.

also whats very different than the 90s, is the amount of borrowing vs earnings. this puts a lot more pressure for owners to keep hold. seems like since 07 we have seen some stagnation and mild falls. not near enough to correct the imbalance.

i would say the real panic crash has yet to even start.

this is true, many areas HADNT BOOMED at all...the main losses were here in the South East.

this time its everywhere.

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I spoke to friends of mine in their 50s, who don't have any recollection of a housing crash happening in the early 90s. They think I'm making stuff up.

What % did they crash by? :P

(seriously...I'm 28 :))

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