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Realistbear

The Housing "recovery" Is Just Another Government Subsidy,

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http://finance.yahoo.com/tech-ticker/the-housing-%22recovery%22-is-just-another-government-subsidy-says-whalen-487811.html;_ylt=AmhJy4BaVRsYD.5K_qbu69i7YWsA;_ylu=X3oDMTE2cWxmMHU1BHBvcwMxMQRzZWMDdG9wU3RvcmllcwRzbGsDdGhlaG91c2luZ3Jl?tickers=xhb,^dji,^gspc,dia,spy,hd,len&sec=topStories&pos=9&asset=&ccode=

The Housing "Recovery" Is Just Another Government Subsidy, Says Whalen
Posted May 18, 2010 01:39pm EDT by Henry Blodget in
Homeowners and the real-estate industry have been heartened over the past year, as house prices have staged a startling recovery. In recent months, that recovery has started to wane, but in many parts of the country, prices are still higher than they were a year ago. And that's welcome news for anyone who owns a house, makes their living selling or building houses, or is underwater on their mortgage.
But it's all a mirage
, says Chris Whalen, managing director at Institutional Risk Analytics. Or, more accurately, it's all a product of government subsidies.
House prices have risen, Whalen says, because the government is desperately trying to get them to rise -- to bail out banks who would otherwise be taking even bigger losses on the underwater mortgages. Similarly, house-building has restarted in earnest because some states are subsidizing house building, in part to address sky-high unemployment.

Our minor "recovery" is similarly a mirage based on banks willing to extend loans and foregoing repossession based on government backing. The government broke under Brown and it seems that the Tories are not going to try to keep the mirage going.

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Our minor "recovery" is similarly a mirage based on banks willing to extend loans and foregoing repossession based on government backing. The government broke under Brown and it seems that the Tories are not going to try to keep the mirage going.

I would not be so sure about that yet - they have signalled repeatedly today their wish to keep IRs at current levels for many years to come.

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I would not be so sure about that yet - they have signalled repeatedly today their wish to keep IRs at current levels for many years to come.

which they will try to do by cutting deeply. However, inflation is looking sticky and we import the majority of our food.

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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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