Georgia O'Keeffe Posted January 2, 2011 Share Posted January 2, 2011 As I've said elsewhere --- a complete c nt. http://www.housepricecrash.co.uk/forum/index.php?showtopic=156891&st=0&p=2837602&fromsearch=1entry2837602 your "U" key seems to be broken Quote Link to comment Share on other sites More sharing options...
R K Posted January 2, 2011 Share Posted January 2, 2011 He says he wants 'stability'. i.e. He doesn't want to see house prices fall i.e. He wants to ensure nominal prices are prevented from falling and engineered to rise i.e. He wants the remainder of the correction to be in real terms over a longer period i.e. The Tories are going to intervene again if nominal prices continue to fall i.e. Merv's firing up the next round of QE. 1. He's a Tory 2. He's a politician It's really not that difficult Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted January 2, 2011 Share Posted January 2, 2011 (edited) What Grant Shapps is saying is exactly what John Redwood said last year. I quote (for the nth time) from JR's blog of April 6th 2010 "We need to work towards a better relationship between average income and home prices, without a violent shake out which will damage existing owners too much and will put off or prevent first time buyers from starting out on ownership. Ideal would be a period of no rises in house prices coupled with a resumption of real income growth, leading to a better balance over a few years." Redwood did admit "That is easier said than achieved." If you want to see Redwood's solutions in that blog, it's at http://www.johnredwoodsdiary.com/2010/04/06/sorting-out-housing/ Edit: clarity Edited January 2, 2011 by Snugglybear Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted January 2, 2011 Share Posted January 2, 2011 What Grant Shapps is saying is exactly what John Redwood said last year. I quote (for the nth time) from JR's blog of April 6th 2010 "We need to work towards a better relationship between average income and home prices, without a violent shake out which will damage existing owners too much and will put off or prevent first time buyers from starting out on ownership. Ideal would be a period of no rises in house prices coupled with a resumption of real income growth, leading to a better balance over a few years." Redwood did admit "That is easier said than achieved." If you want to see Redwood's solutions in that blog, it's at http://www.johnredwo...ng-out-housing/ Edit: clarity all just noise, more chance of Redwood winning X-Factor. Quote Link to comment Share on other sites More sharing options...
Si1 Posted January 2, 2011 Share Posted January 2, 2011 What Grant Shapps is saying is exactly what John Redwood said last year. I quote (for the nth time) from JR's blog of April 6th 2010 "We need to work towards a better relationship between average income and home prices, without a violent shake out which will damage existing owners too much and will put off or prevent first time buyers from starting out on ownership. Ideal would be a period of no rises in house prices coupled with a resumption of real income growth, leading to a better balance over a few years." Redwood did admit "That is easier said than achieved." If you want to see Redwood's solutions in that blog, it's at http://www.johnredwo...ng-out-housing/ Edit: clarity simply put, cash-savers and outright home owners will lose out in real terms value, and the ideal home owning situation is EITHER to rent and have one's capital in real assets (shares, commods) during that time, or to own with a high LTV mortgage - both the real value of the house as well as the debt will fall thru inflation sommat like this WILL happen but I suspect there WILL be nominal house price falls too Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted January 2, 2011 Share Posted January 2, 2011 all just noise, more chance of Redwood winning X-Factor. The "resumption of real income growth" bit has me laughing out loud every time I've read it. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 He says he wants 'stability'. i.e. He doesn't want to see house prices fall i.e. He wants to ensure nominal prices are prevented from falling and engineered to rise i.e. He wants the remainder of the correction to be in real terms over a longer period i.e. The Tories are going to intervene again if nominal prices continue to fall i.e. Merv's firing up the next round of QE. +1 Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 (edited) What Grant Shapps is saying is exactly what John Redwood said last year. I quote (for the nth time) from JR's blog of April 6th 2010 "We need to work towards a better relationship between average income and home prices, without a violent shake out which will damage existing owners too much and will put off or prevent first time buyers from starting out on ownership. Ideal would be a period of no rises in house prices coupled with a resumption of real income growth, leading to a better balance over a few years." Redwood did admit "That is easier said than achieved." If you want to see Redwood's solutions in that blog, it's at http://www.johnredwoodsdiary.com/2010/04/06/sorting-out-housing/ Edit: clarity That is the target. A massive nominal crash over a short period of time would lead to more taxpayer bailouts and a further crippled economy. Whilst sh!tty, its better than Labour's out of control bubble. Edited January 2, 2011 by uncle_monty Quote Link to comment Share on other sites More sharing options...
council dweller Posted January 2, 2011 Share Posted January 2, 2011 I expect the crunch time will come when Spain starts to go. The Euro will fracture and/or take such a massive hit, global bond rates will sky rocket, and then Mr Shapps and Cameron et al will have run out of time. QE won't work then, because it'll only exacerbate the currency risk. The 10 and 30 year treasuries will shoot up, and thus homeowners mortgage rates, and the housing bust, and currency crash will all occur together. V nasty. Oh dear.... what a mess. Yes, elephant in room innit. Saving house prices just isn't possible with that background. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 2, 2011 Share Posted January 2, 2011 Price Stability = Stop Prices Falling And falling prices mean bankrupt banks and the govt trying to underwrite the entire banking system thus ensuring it's own bankruptcy. Quote Link to comment Share on other sites More sharing options...
awaytogo Posted January 2, 2011 Share Posted January 2, 2011 http://www.guardian.co.uk/society/2011/jan/01/minister-end-housing-price-rollercoaster I can't work out where Shapps is coming from. Only yesterday he was railing against the FSA plans to tigthen mortgage criteria Lord Oakeshott Well he has mentioned the fact that HPI has outstripped wages , maybe he has seen the light and is living in the real world. Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted January 2, 2011 Share Posted January 2, 2011 Well he has mentioned the fact that HPI has outstripped wages , maybe he has seen the light and is living in the real world. He doesn't suggest doing anything about it, though, except waiting for incomes to catch up. Don't hold yer breath, Granty, a blue and swollen face isn't a good look for you. Although... Quote Link to comment Share on other sites More sharing options...
eric pebble Posted January 6, 2011 Share Posted January 6, 2011 He doesn't suggest doing anything about it, though, except waiting for incomes to catch up. Don't hold yer breath, Granty, a blue and swollen face isn't a good look for you. Although... Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.