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frugalboy

Bizarre Article On House Prices In The Evening Standard

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http://www.thisislondon.co.uk/markets/article-23833909-lets-hope-for-a-steady-house-price-rise.do

It's just proof that no matter how intelligent the writer, having a vested interest clouds all judgement. In particular:

"UK house prices should have fallen a lot further than they have done in this recession, or so many economists would have us believe.

That they did not is a source of irritation to some, who predict that they will be proved right in the end.

But it is surely a source of comfort to the rest of us who are not struggling to get on to the ladder and who had no desire at all to see prices drop back to 1990 levels."

And he's one of the good ones - there really is no hope in getting anything resembling responsible policy out of the powers that be. Only the markets can make it happen.

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It is at least an honest and accurate commentary, and he does declare his vested interest at the start of the article. He has invested in housing and would like prices to rise.

As for the markets making it happen, don't hold your breath. If the markets show any sign of making a HPC happen then the government will step in again to support prices. They've spent so much already doing this they now can't afford to take their foot off the gas. Forget market forces, house prices will be determined by Whitehall and BoE from now now on. There is a "target" for HPI and public spending/monetary policy will be adjusted to achieve it. Oh, and don't forget you'll be expected to pay for it.

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It is at least an honest and accurate commentary, and he does declare his vested interest at the start of the article. He has invested in housing and would like prices to rise.

As for the markets making it happen, don't hold your breath. If the markets show any sign of making a HPC happen then the government will step in again to support prices. They've spent so much already doing this they now can't afford to take their foot off the gas. Forget market forces, house prices will be determined by Whitehall and BoE from now now on. There is a "target" for HPI and public spending/monetary policy will be adjusted to achieve it. Oh, and don't forget you'll be expected to pay for it.

Unless, the whole propping of the market was actually just to provide a window of opportunity for vested interests with some common sense in which to offload. Then all of a sudden, those who believed the mantra of this nitwit will find that they had missed the boat (to sell while there was a chance) and they, like every other unfortunate burdened with the need to sell, will be chasing the market down all the way to the bottom :P

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Unless, the whole propping of the market was actually just to provide a window of opportunity for vested interests with some common sense in which to offload. Then all of a sudden, those who believed the mantra of this nitwit will find that they had missed the boat (to sell while there was a chance) and they, like every other unfortunate burdened with the need to sell, will be chasing the market down all the way to the bottom :P

Who sold Lehman in the days before its demise?

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http://www.thisislondon.co.uk/markets/article-23833909-lets-hope-for-a-steady-house-price-rise.do

It's just proof that no matter how intelligent the writer, having a vested interest clouds all judgement. In particular:

"UK house prices should have fallen a lot further than they have done in this recession, or so many economists would have us believe.

That they did not is a source of irritation to some, who predict that they will be proved right in the end.

But it is surely a source of comfort to the rest of us who are not struggling to get on to the ladder and who had no desire at all to see prices drop back to 1990 levels."

And he's one of the good ones - there really is no hope in getting anything resembling responsible policy out of the powers that be. Only the markets can make it happen.

and they will ;)

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True, there will certainly be a shake-out in the public sector, but against that the latest news about the manufacturing sector was the best for months.

There were real signs that the weakness of the pound is beginning to help our companies sell more at home and abroad.

Talking out of his ****.........

http://www.thisislondon.co.uk/markets/article-23833909-lets-hope-for-a-steady-house-price-rise.do

UK trade gap widens unexpectedly as imports rocket

Trade data underlines fears that weak pound is raising costs for importers and not yet providing significant boost to exports

Britain's trade gap widened more than expected in March as imports shot up five times faster than exports, according to official data that cast fresh doubts over the prospects of an export-driven economic recovery.

....

"Net exports are one of the greatest hopes for growth this year and next given the improvement in competitiveness associated with the pound. Thus far, all the weakening in sterling has brought is inflation and we are still holding our breath for the long awaited boost to growth,

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The article is spot on for many people. Does not matter what anyone says, in the end, conditions in our economy cannot be put right without having a HPC aswell. It will happen and correct itself. The frustration is just how long this theatre show takes to reach Act 5 scene four - Armagedon.

However, the sign of the forthcoming crash is alrrady with us. Huge inventory appearing all over the country. Cuts, then fear, employment problems, rate rises, lack of confidence. Volatility in financial markets has begun. There was months of volatility before the 2008 crash. So there will be this time.

I have suggested buying gold and silver for some months. These metals are showing real signs of detachment from the stock market up and downs. They are reflecting the demise of fiat currency worth. We are all about to find out that these bits of paper are, well...just that, bits of paper. Not backed by a thing except a waning belief in their worth. If the pound and the Euro are going together, then the USD will temporarily benefit.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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