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CarbonBasedLifeform

How Can Educated People Be So Dumb?

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I agree Its a knife edge, if rates go up theres a high chance of massive reposessions and bad debt and big banking losses, if they stay where they are they will force spending, increase debt problems and let inflation run away with itself. It will take some bottle to increase the interest rates right now, I cant see it...

Sovereign debt crisis it is! It's a lose/lose situation, unless you're holding the yellow stuff that is, then it's win/win all the way. Happy Days.

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Like everyone on these boards I think housing in some parts of the UK is overpriced and should come down in price, but i'm not entirely convinced that it will, not in the way that many people on here seem to think it will.

A 3 bed semi on my street sold in Feb 2007 for £345,000.00. At the time I thought that was ridiculous. Six months later their neighbour put their house up for £360,000.00. Bad timing as sub-prime crisis started in April 2007 in USA. That house did not sell until February 2009 for £249,999.00. Bad timing again as prices started to increase from March 2009.

The house which sold in Feb 2007 came on the market this week at £399,000.00. It sold the day it came on the market, in fact it hadn't even had time to be listed on Rightmove it sold that fast. Jammy buggers.

As with every market it's timing that counts the most.

If you had bought in 1989 and sold in 1993, bad timing.

Bought in 1989 (still bad timing for an entry) but sold in 2006, good timing.

Most of us can't think much further ahead than the next few weeks, let alone a decade.

The house that came on the market this week and sold for 400k for a 3 bed semi musts be special house. Where I live (in the South East) nothing is selling at the moment, let alone on the day it comes to market.

The question you have to ask yourself - given you think prices may not fall - is how many people over the next 10 to 20 years will be able to afford 400k for 3 bed semis in that street as they become available?

Maybe someone with more money than sense has just bought that one. Someone who maybe sold up a while ago and is sitting on cash - who knows?

But, in the normal way of things, as people move up the ladder to buy a 3 bed semi - how many people starting out in life now aged say 25, earning average wages, will be able to afford - EVER - to pay that price.

Bearing in mind that, deposit on a first property excepted, if you are starting out today and one day buy a 400k house - you will need a 400k mortgage - assuming no HPI in the meantime.

That is why, in the medium/long term the housing market MUST correct. Inflation will not do the trick this time - wage inflation in our globalized economy is a thing of the past for most people.

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Let inflation run away for a bit.

Oh for heaven's sake - we're already uncompetitive in the global economy. We already carry a massive balance of payments deficit. Why do people still keep trotting out the old 'let inflation rip for a bit' nonsense?

It's NONSENSE. It makes no sense. We may well get price inflation - we HAVE price inflation due to the price of oil - but wage inflation - PERLEASE!

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Oh for heaven's sake - we're already uncompetitive in the global economy. We already carry a massive balance of payments deficit. Why do people still keep trotting out the old 'let inflation rip for a bit' nonsense?

It's NONSENSE. It makes no sense. We may well get price inflation - we HAVE price inflation due to the price of oil - but wage inflation - PERLEASE!

There will be no wage inflation, but there will be price inflation. If there is wage inflation it will always be outpaced by price inflation.

It's called getting poorer at the expense of the Eastern economies, where all the means of production have been moved to by our corporations.

Protectionism and war, it's the only way you moronic masses, follow us to prosperity, we must destroy those pesky Chinese.

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Oh for heaven's sake - we're already uncompetitive in the global economy. We already carry a massive balance of payments deficit. Why do people still keep trotting out the old 'let inflation rip for a bit' nonsense?

It's NONSENSE. It makes no sense. We may well get price inflation - we HAVE price inflation due to the price of oil - but wage inflation - PERLEASE!

Yes its nonsense, but that is what is happening - no one said it was a solution. More a band aid on a broken leg.

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I've come to realise most people haven't a clue what's going on most of the time.

The idea that Labour = nice and Conservatives = nasty is hardwired into the brains of nearly everyone in the public sector, associated NGOs and the creative professions.

Most people's logic seems to be cuts = nasty; therefore, cuts = tory. No cuts = nice, therefore Labour = nice.

The idea that there could be any connection between 'nice' and 'cuts' is lost on them.

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I can forgive people forgetting things after 20 years. What I find odd is that even though prices fell 20% in 2008/9 people on these boards tell me it can't happen again over the next 2 years :rolleyes:

Heh heh - absolutely. It's one thing to forget something that happened a couple of decades ago when many people were too young to really be affected, it's quite something else to have blanked out something that just happened a few years back as 'not possible'.

The current government have indeed inherited a poison chalice. They will cop the blame for the fall out from over a decade of severe economic mismanagement and their attempts to repair the damage will be hailed as being the cause of aforementioned fallout. There's already a predominant attitude in the media that any cuts in government spending will 'cause' any future economic problems :rolleyes:

The general public will be longing for the good old days of milk and honey from a free-spending, push-the-debt-under-the-carpet labour government. They really are morons.

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If we continue on this course, which frankly the only way the govt. can hope to deal with the country's debt burden, all it will lead to is interest rates being forced up by the bond markets.

That will lead to a sovereign debt crisis, a housing crash and a currency collapse. This country is painted into a corner with it's debt, as are many others, no one gets out alive.

Best hold some of that deposit you're saving for a house in gold, then you can sell it and buy a really cheap house when gold rockets and houses crash.

Personally I'm looking forward to becoming a landlord and getting regular income for doing very little.

I don't get it. Are you going to swap your gold for a house or something? Or sell you gold to someone who has a currency other than sterling? What currency will you be able to buy the house with?

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While were on the subject of female mentality generally ...

Women generally have much lower tolerance of cognitive dissonance than men. Men f*ck things up but are usually capable of realizing their stupidity at some point in the future, women OTOH tend to go for reinterpret the past events and value judgments (e.g. a nice person is reclassified "bossy") so that there was never any mistake or misjudgment. Not only that but they do this collectively to cover for each other - piss off one women in a group and the others will hate you for no ration explanation.

Bloody hell. Nail, head.

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and their attempts to repair the damage will be hailed as being the cause of aforementioned fallout.

Which is fair enough, in a way. You only need to read this site to see that there is an ideological assault on the remains of the post-war settlement. Fair enough, if you like that sort of thing, but if a govt has the cojones to do that then they need to have matching ones to accept the consequences.

Masking it as purely a tidying-up exercise after the last govt is just dishonest, and dodging the blame for the economic fallout is disingenuous at best

They really are morons.

Beware the confirmation bias that spending too long on this site can engender. ;)

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There are two basic rules that need to be learned in regard to money:

1. Knowing the difference between wants and needs.

2. Knowing the value of money by looking at what something costs then translating that cost into units of work that needs to be done to buy it...eg I want that and I will have to work three hours to buy it, is it worth it?..... This is far more difficult to do if you are given it or you borrow it. ;)

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Educated People Be So Dumb?

All by design.

They make good obedient workers, and easy to rob them blind. Remember every person is a potential yield/sale/customer/profit to take and make.

What are you waiting for? Go get it!

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The education really is irrelevant. Heck, I was studying politics at uni and in our course books the "tiger economies" were hailed as great things - Ireand among many (this was in early 2000). How much of that was fuelled by loose credit and bubbles? Quite a lot, but the point is that everything that relates to the real world in education is built on paradigms - and the paradigm is credit expansion.

If you haven't got a certain level of curiousity and apetite for information no amount of education will prepare you for real life because education is so limited if you only expect it to feed you with facts - education should be about instilling values and a drive to want to know more - not just be fed whatevere the flavour of the moment is.

Obviously England is fecked for so many other reasons, two party systems, long running soaps and reality television and house price increases which really made politics and analyzing the other bits about economy irrelvant, as long as house prices go up everyone's happy - you can't go wrong from investing in bricks and mortar.

What I DON'T understand at all is how the heck people who were adults in the 90s didn't learn the lesson on house prices, and why they didn't pass on this knowledge to their kids. Christ.

You have a group of "experts" wanting to sell a theory, if they talk confidently enough the majority of people will buy the argument that's it all good. Very few people are sceptical and once you have a Prof saying X the majority of people will think they are a Prof, clearly they are an expert.

Trouble is all experts are failures at predicting because there's too many variables.

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...just human nature to have strong feelings and a point of view.....

absolutely. That's to be applauded - as long as one remembers that other points of view may apply, and that people who disagree are not necessarily morons (even if they are, dammit) ;)

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absolutely. That's to be applauded - as long as one remembers that other points of view may apply, and that people who disagree are not necessarily morons (even if they are, dammit) ;)

...oh aye.... :rolleyes:

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Sister and BIL came to visit me the other day. She has some ******** degree in evironmental studies and field biology and i know it must be ******** as she could not do maths at even a quite basic level at secondary school but is good at writing essays and making neat diagrams but thats about it etc .

Anyways she works for the council looking after an area of outstanding natural beuty she just blurted out "dont think much of this new govt the economy is in a mess and we can,t sell our house"

i handed her a newspaper with the "britains real debt is 5trillion story" and said "do'nt think that happened in the last 120 days do you" all i got was "dunno" and a blank look, i started to talk about how labour had built schools and hospitals with pfi "mortgages" etc and got some more blank looks.

she has just put house on market for £235k (the highest of the valuations) it was valued at £215k in 2007 :o and she is wondering why nobody is viewing it "ive put it on at £235k as everyone is looking for a bit of a bargain at the moment so we went with the highest valuation to allow us room to knock a few £k off for any hagglers" she said. :lol: pure ******ing genius.

If an apparently educated woman can be so ******ing stupid i,m sure labour will be back in in a few years, country full of morons impo.

There's your answer. P*sspoor numeracy standards, and incapacity for independent thought. But, that's ok these days, for some reason.

Edited by cheeznbreed

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What I DON'T understand at all is how the heck people who were adults in the 90s didn't learn the lesson on house prices, and why they didn't pass on this knowledge to their kids. Christ.

419 Nigerian scams, Ponzi schemes and conmen work on a very simple principle - people want to believe. I, like anyone my age, lived through the last HPI/HPC and none of my friends them want to believe the process themselves, never mind educate others.

Even when they have seen it happen, when its proved in a mathematical/scientific way to scientifically educated people, they STILL want to believe in Magic if its means they make money without working.

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While were on the subject of female mentality generally ...

Women generally have much lower tolerance of cognitive dissonance than men. Men f*ck things up but are usually capable of realizing their stupidity at some point in the future, women OTOH tend to go for reinterpret the past events and value judgments (e.g. a nice person is reclassified "bossy") so that there was never any mistake or misjudgment. Not only that but they do this collectively to cover for each other - piss off one women in a group and the others will hate you for no ration explanation.

and I would add, treat a women mean she will hate you! but love you for it........put her on a pedastal she will feck you up and sleep with your best friend.....men want mothered, yes you too!, women want father figures....not fairies.

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Guest BetterOffOnBenefits

How can educated people be so dumb?

Your sister has a degree in a non-related discipline.

A bigger puzzler is why are so many of the Economic experts/whizzkids/pundits so wrong, so often?

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What is it going to take to change people's perceptions? The best part of a decade's media coverage and EA hype have implanted the view that ever increasing house prices are a good thing and prices will only go up. Convincing people that their house is worth less than a couple of years ago seems impossible.

I know a lot of intelligent folk who have jumped into the BTL market with no concept of how much the interest on a mortgage really is, the costs of maintenance etc. People really do seem to be thinking very short-term about the 25 year loan they've taken out. There's complete denial out there about potential interest rate rises.

Sentiment for squeezed out FTBs is minimal, because everyone is focused on getting the highest price for their property. There are a few parents out there who are looking at their kids' position and starting to think that prices are too high, but that's it.

My concern is that if prices do start to fall quickly, as 18 months ago, sellers will quickly retreat again resulting in a lack of supply pushing up prices. Time will tell.

Good summary.

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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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