Jump to content
House Price Crash Forum
Phaedrus

It Is A Housing Bubble!

Recommended Posts

He was just on GMTV and said "We've had a housing bubble". I nearly choked on my muesli! If you'd have blinked you'd have missed it, and then went on to say that due to the economic stability we've enjoyed it hasn't been a problem! Does he really believ this stuff? The guy is deluded. :blink:

Share this post


Link to post
Share on other sites

He also said it on Today on radio 4 after 8. My he's been a busy little chancellor this morning.

Apperently its not a problem due to low interest rates low inflation blah blah blah, but what about when

it goes POP!!

Phil

Share this post


Link to post
Share on other sites
Blame oil, Mervyn, Balls, etc. would be my guess.

/G

He won't blame anyone...because it won't be happening

I you look closely at the housing figures over the last five years, then average them out over the last 50 years, then campare them to the USA, Australia and Outer Monglia, adjust the figures for inflation, insert a growth tracker, take the average and divide it by six, adjust the data to fit into a six month cycle, calculate the gap between earnings, houseprices and the cost of fish, square this by 44, divide it by the number of second homes MP's have got ....and any fool can see the economy is working fine

:P

Share this post


Link to post
Share on other sites

On Radio 5 he said that he'd 'successfully steered a course round it' and that at any other time it would have caused a recession that the last movement in IRs was down and that mortgage repayments are at a 35 year low.

w*nker

Share this post


Link to post
Share on other sites
On Radio 5 he said that he'd 'successfully steered a course round it' and that at any other time it would have caused a recession that the last movement in IRs was down and that mortgage repayments are at a 35 year low.

The thing I ask myself though, is how can mortgage payments be at a 35 year low? Is he talking about average payments across the whole country? Is he talking about the repayments per £k borrowed?

Ask any FTB and they're at a historical high!

Share this post


Link to post
Share on other sites
Guest struthitsruth
He won't blame anyone...because it won't be happening

I you look closely at the housing figures over the last five years, then average them out over the last 50 years, then campare them to the USA, Australia and Outer Monglia, adjust the figures for inflation, insert a growth tracker, take the average and divide it by six, adjust the data to fit into a six month cycle, calculate the gap between earnings, houseprices and the cost of fish, square this by 44, divide it by the number of second homes MP's have got ....and any fool can see the economy is working fine

:P

:lol::lol::lol:

First class post there, 2005 !!!

Share this post


Link to post
Share on other sites

Of course the housing bubble has been good for gordon, it has been what stopped us entering recession and allowed the 'stable' economy to continue for so long, the goverment has been operating on borrowed time. The only thing that can save the government now is the soft landing senario/permanantly high plateau, were on a knife edge.

To me it sounds like gordon is saying

'yes the boom has stopped us going into recession, and keeping prices high will stave off recession just a little bit longer (which is good for everyone apart from Potential FTBers and STrers?). The government cant afford a House Price Crash because it will distroy the economy'

Alot of people in this country believe the soft landing, permanantly high plateau theory. Was talking to somone yesterday who said when he bought his house it was 6 times income in the 70's and it is no different now, he also said in 74 his morgage went from 4% to 16% for several years (wasnt it for only few mounths and later than that?). His facts seem slightly inaccurate, but his belief that prices would stay level for 2 years before continuing to rise again was fixed in his mind... Welcome to denial, denial in the government denial in the population.

Edited by moosetea

Share this post


Link to post
Share on other sites

Saw the Panorama last night, in 97 he was saying no short term fixes for political gain, so what on earth are shared ownership schemes then? They're to boost the market whilst making the underlying problem of high prices even worse.

Share this post


Link to post
Share on other sites

I heard him on Radio 4 this morning. He admitted his growth forecasts were wrong, but blamed that on high oil prices. Seemed to me the most interesting thing was when Humphries pressed him on the question of tax increases and / or spending cuts. He ducked and dived about whether he'd have to raise taxes, and finally said he wasn't going to let Humphries pin him down on that one. He seemed to be suggesting that tax revenues were going to pick up again, but Humphries didn't press him and I felt like shouting at the radio, "How? More consumer borrowing?".

IMO Brown has painted himself into a corner, but these things take years to play out and in the meantime the Treasury will be trying every dodge in the book to make things look good. We could console ourselves with the thought that a year ago people like Shipside could say, "economy's sound, no trigger for a crash" without public contradiction. Whereas now the climate has changed completely and scepticism about Brown's handling of the economy is now mainstream.

Share this post


Link to post
Share on other sites

He said this the other day about the US housing market. There is a bubble.

I didn't hear him this morning, was he referring to the UK market?

If the chancellor is now publically stating there is a housing bubble, then this must be significant.

He hasn't just all of a sudden started to throw the words "housing bubble" around by accident.

Maybe he is simply taking pre-emptive action by stating he is aware of the bubble now. Then when it collapses, he can say later he was aware of it before it collapsed...

Share this post


Link to post
Share on other sites
He was just on GMTV and said "We've had a housing bubble". I nearly choked on my muesli! If you'd have blinked you'd have missed it, and then went on to say that due to the economic stability we've enjoyed it hasn't been a problem! Does he really believ this stuff? The guy is deluded. :blink:

The bubble isn't a econimc problem, its the f*cking great big bust that will be the problem.

Share this post


Link to post
Share on other sites
He must know that using the words 'housing bubble' will put the fear of god into people.

Without doubt, he does.

That's why there must be major significance to him using the words "house price bubble".

He hasn't just used these words by accident...

Share this post


Link to post
Share on other sites

Brown is saying that there is a bubble in the housing market, but a bubble that won’t burst. If it won’t burst it isn’t a bubble, according to the widely accepted understanding of asset bubbles.

Could it be that Brown has such a dismissive contempt for the intelligence of his fellow citizens that he is willing to make a sweeping statements dismissing economic theory and experience? His arrogance is now laughable.

Definition of a Bubble

Share this post


Link to post
Share on other sites
Brown is saying that there is a bubble in the housing market, but a bubble that won’t burst. If it won’t burst it isn’t a bubble, according to the widely accepted understanding of asset bubbles.

Could it be that Brown has such a dismissive contempt for the intelligence of his fellow citizens that he is willing to make a sweeping statements dismissing economic theory and experience? His arrogance is now laughable.

Definition of a Bubble

Even though brown has admitted there is a bubble, brown is trying to deceive people into thinking that this bubble won't burst as he won't let this happen. The unfortunate fact is that many people will believe him.

Share this post


Link to post
Share on other sites
Even though brown has admitted there is a bubble, brown is trying to deceive people into thinking that this bubble won't burst as he won't let this happen. The unfortunate fact is that many people will believe him.

At conferance Brown says the housing "Bubble" word again, and he then goes on to line up OPEC to be the "Fall Guys" :D

Share this post


Link to post
Share on other sites

I think Brown is living in a bubble. Of course the bubble will burst - otherwise it ain't a bubble. Even a 5 year old knows that bubbles burst.

I think greenspan et al in the US told this fool to own up and stop deceiving the general public.

Share this post


Link to post
Share on other sites

Brown is at the highest level of Government, and he wouldn't be using the bubble word, unless the spin doctors had judged it fortuitous to do so.

Still can't quite work it out yet though .....

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.