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The Masked Tulip

If House Prices Keep Falling This Fast, The Economy Is Screwed

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Interesting comments below this article on house prices in the US and the belief that US house prices are still too expensive - also some interesting comment thrown in by some Canadians and Aussies... one who has just bought two homes... one to live in and one to BTL.

http://www.businessinsider.com/robert-shiller-if-house-prices-keep-falling-this-fast-the-economy-is-screwed-2010-12

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Screwed?

We are beyond screwed! It's more like held a knife point in a dark alleyway and being raped. Except that a huge number of extra participants have just seemingly stumbled into this alleyway and they want a go too. The queue stretches round the block fifty times!

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Interesting comments below this article on house prices in the US and the belief that US house prices are still too expensive - also some interesting comment thrown in by some Canadians and Aussies... one who has just bought two homes... one to live in and one to BTL.

http://www.businessinsider.com/robert-shiller-if-house-prices-keep-falling-this-fast-the-economy-is-screwed-2010-12

Yes, its quite correct, falling house prices damage the economy becuase they damage the banks ability to lend. Without lending, the economy is screwed.

I know hating banks is very fashionable here on HPC but the fact is we need the banks. No banks = Argentina = Total loss of the middle classes and anarchy.

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screwed?

what like the mass enslavement of the productive wealth of the country.....its people?

do we have FEMA camps and random blodd lettings in the UK?

they do in the US.

and no fly lists.

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Screwed?

We are beyond screwed! It's more like held a knife point in a dark alleyway and being raped. Except that a huge number of extra participants have just seemingly stumbled into this alleyway and they want a go too. The queue stretches round the block fifty times!

Yup. Utterly, utterly depressing.

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Yes, its quite correct, falling house prices damage the economy becuase they damage the banks ability to lend. Without lending, the economy is screwed.

I know hating banks is very fashionable here on HPC but the fact is we need the banks. No banks = Argentina = Total loss of the middle classes and anarchy.

no, Argentina was having too much lending....for that you only need 1 bank...a central one.

we dont need 500 banks in the UK...we can let most go.

we dont need a middle class either come to think of it.

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Yes, its quite correct, falling house prices damage the economy becuase they damage the banks ability to lend. Without lending, the economy is screwed.

I know hating banks is very fashionable here on HPC but the fact is we need the banks. No banks = Argentina = Total loss of the middle classes and anarchy.

If you charge interest the only way to get the interest back is to create more debt.

The banks pay themselves back with more debt. The system is unsustainable.

"While economic textbooks claim that people and corporations are competing for markets and resources, I claim that in reality they are competing for money - using markets and resources to do so. Greed and fear of scarcity are being continuously created and amplified as a direct result of the kind of money we are using. For example, we can produce more than enough food to feed everybody, and there is definitely not enough work for everybody in the world, but there is clearly not enough money to pay for it all. In fact, the job of central banks is to create and maintain that currency scarcity. Money is created when banks lend it into existence When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn't create the second $100,000 - the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000."- Bernard Lietaer, Former Central Banker

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I know hating banks is very fashionable here on HPC but the fact is we need the banks. No banks = Argentina = Total loss of the middle classes and anarchy.

It's true we need banks, but we live in a society in which 'middle class' is no longer defined by education, employment or social standing but by the brainless and fraudulent accumulation of property. Similarly 'stability' is no longer defined as prudence and sustainability but by both the willingness to take on colossal debts and by access to public funds. The anarchists are those that shun debt and live within their means. The banks are just the symptom of our sick society. I would say we should tear it all down and start again but the reality is much of our society and our economy is already a pile of smouldering rubble. We cannot rebuild while we cling to the delusions of the past.

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Given that the economy is screwed - and many seem to agree it is. What is the likely outcome? Will it end in civil war? World war? Or some sort of regime change? Will they stop people taking money out of their bank accounts? Will bank accounts be hyperinflated out of existance? What is likely to affect me basically, as just knowing that the economy is screwed is all very well - but I'd like to be able to be prepared for the outcome.

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Yes, its quite correct, falling house prices damage the economy becuase they damage the banks ability to lend. Without lending, the economy is screwed.

I know hating banks is very fashionable here on HPC but the fact is we need the banks. No banks = Argentina = Total loss of the middle classes and anarchy.

Interestingly enough, the Argentinian economy is growing quite strongly again. No idea if it's sustainable though.

reuters link

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That's sooo 2010.

We're post-screwed, looking up at the ceiling smoking a cigarette.

Trouble is when one of us falls asleep and drops the fag end in the sheets... Eventually they'll realise that Gordon had the battery out of the firealarm years ago.

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I think you'll find that there's just a bit of heavy lifting to do.

Then the economy will be all fixed and we can all have jam.

Promise.

Is that Cameron having been on the weights? What a knob he is. Just another lilly-livered disappointment.

Though in relation to the UK - in spite of the obvious problems - the delusion continues. House prices up (says the NW), nothing to worry about. What a bizarre country we live in.

War is peace. Freedom is slavery. Ignorance is strength.

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Screwed?

We are beyond screwed! It's more like held a knife point in a dark alleyway and being raped. Except that a huge number of extra participants have just seemingly stumbled into this alleyway and they want a go too. The queue stretches round the block fifty times!

You need to seek some medical help regarding your rape/violence/war fetish.

You come across as somebody who is very disturbed.

Edited by headrow

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Interestingly enough, the Argentinian economy is growing quite strongly again. No idea if it's sustainable though.

reuters link

I have an Argentinian friend who I chat to on the internet, I was speaking to him last night, and we compare the prices of goods etc.

Food in Argentina is more expensive than in the UK, yet Argentina is a food exporter.

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Interestingly enough, the Argentinian economy is growing quite strongly again. No idea if it's sustainable though.

reuters link

Argentina is having rolling electricity blackouts and riots in the squatter camps (which are built in city parks and such thereby wrecking the lives of the people living nearby).

Inflation is 30% (measured by international observers), although the government produces fake figures to show very low inflation. That level of inflation will destroy wealth, no doubt about it.

The growth figures are probably fake as well, the government is corrupt as hell.

I have an Argentinian friend who I chat to on the internet, I was speaking to him last night, and we compare the prices of goods etc.

Food in Argentina is more expensive than in the UK, yet Argentina is a food exporter.

Not just food, I've heard everything is far more expensive than the USA for instance, three times as much in some cases. They are getting screwed,

Edited by Peter Hun

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Inflation is 30% (measured by international observers), although the government produces fake figures to show very low inflation. That level of inflation will destroy wealth, no doubt about it.

The growth figures are probably fake as well, the government is corrupt as hell.

Cor blimey for a moment there I thought you were talking about the UK! :huh:

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  • 312 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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