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Bbc Article Mentions Unlanced Uk Property Bubble

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The references to Krugman's words of wisdom literally made my jaw drop.

Does he really still believe that the 2008 price spike was due to demand, and that the near doubling of commodity prices across the board since last summer is explained by demand that didn't exist before then, and not QE2 coupled with speculation?

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The references to Krugman's words of wisdom literally made my jaw drop.

Does he really still believe that the 2008 price spike was due to demand, and that the near doubling of commodity prices across the board since last summer is explained by demand that didn't exist before then, and not QE2 coupled with speculation?

It was a series of freak natural events which drove up the prices of the commodities you speak of. They rises were exhaberated by speculation. i.e. Big floods in australia hits their farming production. Nonetheless, the speculators role wasnt crucial in these spikes

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It was a series of freak natural events which drove up the prices of the commodities you speak of. They rises were exhaberated by speculation. i.e. Big floods in australia hits their farming production. Nonetheless, the speculators role wasnt crucial in these spikes

:lol:

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It was a series of freak natural events which drove up the prices of the commodities you speak of. They rises were exhaberated by speculation. i.e. Big floods in australia hits their farming production. Nonetheless, the speculators role wasnt crucial in these spikes

I disagree. The natural disasters and supply problems are the kernel of truth upon which the retrospective justifications for the price increases are built around. Looking at the average price increase for all the commodities listed here: http://www.indexmundi.com/commodities/ , it must be roughly 40-50% across the board. Look at the angle of the graph from mid-2010, the point at which the Fed made it clear that QE2 was inevitable.

The real cause is QE2 + speculation. The supply constraints caused by, e.g. bad Russian harvests, flooding of sugar plantations in Australia, etc. are just reasons for speculators to pile in, but the fact that prices across the board rocketed at the same time as QE was confirmed makes it crystal clear, in my mind, that the sudden increase in prices has nothing to do with a sudden increase in demand.

Food demand from China, India and Indonesis did not suddenly increase by 50% last year.

If you prevented financial companies from being able to trade in commodities, you would largely eradicate these price swings.

Edited by WageslaveX14

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Unlanced property bubble? You don't say!

http://www.rightmove.co.uk/property-for-sale/property-18116016.html

P.S. One must look at the floorplan to fully comprehend the extent of this one.

That's great! You can put your feet up on the sofa whilst sitting on the toilet! :blink:

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Food demand from China, India and Indonesis did not suddenly increase by 50% last year.

Prices are set at the margin so it is incorrect to imply that a 50% increase in prices means a 50% increase in demand. Sometimes a very small increase, or a small decrease in supply, can cause massive price swings. Depends on the market.

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Unlanced property bubble? You don't say!

http://www.rightmove.co.uk/property-for-sale/property-18116016.html

P.S. One must look at the floorplan to fully comprehend the extent of this one.

where on earth are you meant to cook or is it a BBQ on the roof terace everynight?

Edit, oh and on topic, what do you expect from the BBC, it's utter left wing drivel

Edited by Pauly_Boy

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Small Studio with large roof terrace situated in Pimlico grid within very easy reach of Victoria Station and excellent local shopping

Where the f***k would you put the shopping you have purchased? :rolleyes:

This is just a storage cupboard with a bog and a sofa in it.......I bet it gets snapped up being on the "Pimlico grid" and all, whatever that means, what an utter scam property in the UK is :blink:

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Prices are set at the margin so it is incorrect to imply that a 50% increase in prices means a 50% increase in demand. Sometimes a very small increase, or a small decrease in supply, can cause massive price swings. Depends on the market.

Fair enough, but demand didn't increase magically overnight at the pace required to push prices up by the amounts that we have seen - that was my point.

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How long before it's edited to say that there isn't such a bubble in this country LOL.

We have reached the end of the game - the music had stopped - and the Ponzi/pyramid Scheme has just about run out of entrants with the "money" to play.... That is where we are right now. The air is leaking out - and people are standing around looking at the whole hpi "thing" - and - as spectacularly seen in Ireland in the last few months - everyone is asking each other - "How the hell did we get to this point? How the hell did anyone ever think that/this property was REALLY "worth" £X/£Y.....

People are now in a daze - and the powers that be are desperately trying to get the [false] "message" over that - 'there is nothing to see here, move along please...."

Not unlike Japan now: Stalemate - and inertia. Incredulity at how we got here. For how long? Who knows... :rolleyes:

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I lol'ed so much, a bit of wee came out!

Imagine being the lender : you might look at the numbers and release a bit of pooh.

Prime St John's Wood / Hampstead trades at about £1,000 / ft^2. The asking price for this place is about £2,123 / ft^2. It might be worth £500 / ft^2 at best given its location.

The amount of money at risk on this one place is large. Multiplying it through the London market is scary. Multiplying it through the UK market is horrifying.

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I lol'ed so much, a bit of wee came out!

That's when you should wish you could live in such a place; it would be no problem at all assuming you were sitting on the sofa!

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  • 311 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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