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You Cannot Live Off An Asset Bubble Indefinitely

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So said Will Self on Newsnight just now.

Tune in

I've always liked that man. No one does bitter cynicism quite so sincerely.

Edited by athom

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Asset bubbles are what makes the system tick along. It needs bubbles. If Will Self means our housing bubble needs to be pricked then good for him. It's what most of us on this forum want. But then it will only be replaced by the next bubble as the system continues to eat and destroy itself.

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he has distanced himself from the bubble- and deficit-deniers of the public sector self-help group that the Labour Party has become; wasn't he New Labour? If so, this is also reflected in Blairites as a whole taking a HUGE step away from the current Labour Party.

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Asset bubbles are what makes the system tick along. It needs bubbles. If Will Self means our housing bubble needs to be pricked then good for him. It's what most of us on this forum want. But then it will only be replaced by the next bubble as the system continues to eat and destroy itself.

Correct - it’s a way of boosting money in certain sectors in the hope that it will allow the sector to innovate at a faster pace for a short amount of time. The problem is the longer a bubble persists the more people figure out how much money they can personally make out of the bubble, the size of the bubble decides how big the fallout will be. Look at the .com bubble - happened relatively quickly and not many people made obscene amounts of money out of it by the end but loads of innovation came out of it, the size was pretty big but was offset by blowing up the housing bubble and consumerism strait away. Now look at the housing bubble - been allowed to drag on for ages - loads of people making obscene amounts of money out of it - so basically hardly any innovation and the size is astronomical.

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Just a quick question for those who blame New Labour /Gordon Brown for the housing bubble / economic woes.

Was the 1990's housing bubble his fault too?

Was the 1990's recession / currency crisis his fault too?

Seems to me that there wasn't really a lot of difference between what happened then and what happened now except the colour of the ties worn in parliment but some of the frothing at the mouth supporters seem to be incapable of seeing both sides are equally shite.

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he has distanced himself from the bubble- and deficit-deniers of the public sector self-help group that the Labour Party has become; wasn't he New Labour? If so, this is also reflected in Blairites as a whole taking a HUGE step away from the current Labour Party.

Didn't he mainline smack on the Tory election campain plane once - talk about a mile-high high :D

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Just a quick question for those who blame New Labour /Gordon Brown for the housing bubble / economic woes.

Was the 1990's housing bubble his fault too?

Was the 1990's recession / currency crisis his fault too?

Seems to me that there wasn't really a lot of difference between what happened then and what happened now except the colour of the ties worn in parliment but some of the frothing at the mouth supporters seem to be incapable of seeing both sides are equally shite.

Here you go.

20110409_brc503.gif

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Just a quick question for those who blame New Labour /Gordon Brown for the housing bubble / economic woes.

Was the 1990's housing bubble his fault too?

Was the 1990's recession / currency crisis his fault too?

Seems to me that there wasn't really a lot of difference between what happened then and what happened now except the colour of the ties worn in parliment but some of the frothing at the mouth supporters seem to be incapable of seeing both sides are equally shite.

So we can't condemn someone for having committed a murder last month, coz someone else committed another murder in the 1990s?!

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<br />Correct - it's a way of boosting money in certain sectors in the hope that it will allow the sector to innovate at a faster pace for a short amount of time. The problem is the longer a bubble persists the more people figure out how much money they can personally make out of the bubble, the size of the bubble decides how big the fallout will be. Look at the .com bubble - happened relatively quickly and not many people made obscene amounts of money out of it by the end but loads of innovation came out of it, the size was pretty big but was offset by blowing up the housing bubble and consumerism strait away. Now look at the housing bubble - been allowed to drag on for ages - loads of people making obscene amounts of money out of it - so basically hardly any innovation and the size is astronomical.<br />

I remember a Teacher mate who had a bit of Inheritance cash to blow asking me what I thought just before it all collapsed.(.com)

Just told him it was a City Casino and if he didn't care about 'betting' his lolly - that was up to him!

Just to put you in the right frame of mind - at the end of the madness people were buying shares/sinking Billions into companies that never materialised & never made a profit - except on people gambling on the share prices.

As millions of ordinary UK punters lost their cash/savings/pensions after being persuaded by Thatchers Govt advertising to sink their savings into Utility shares etc those that had any left were quickly 'herded' into BTL which the City 'Financials' had set up ready over the previous years (devious 10-15yrs ie they got rid of the old style bank managers to enable the liar loan lending scams - approved by non-persons in regional banking centres.)

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As millions of ordinary UK punters lost their cash/savings/pensions after being persuaded by Thatchers Govt advertising to sink their savings into Utility shares etc those that had any left were quickly 'herded' into BTL which the City 'Financials' had set up ready over the previous years (devious 10-15yrs ie they got rid of the old style bank managers to enable the liar loan lending scams - approved by non-persons in regional banking centres.)

Hang on, I thought they made money because the utilities were sold off cheap? Your logic doesn't stack up.

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Just a quick question for those who blame New Labour /Gordon Brown for the housing bubble / economic woes.

Was the 1990's housing bubble his fault too?

Was the 1990's recession / currency crisis his fault too?

1990s recession was a minnow by comparison

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I remember a Teacher mate who had a bit of Inheritance cash to blow asking me what I thought just before it all collapsed.(.com)

Just told him it was a City Casino and if he didn't care about 'betting' his lolly - that was up to him!

Just to put you in the right frame of mind - at the end of the madness people were buying shares/sinking Billions into companies that never materialised & never made a profit - except on people gambling on the share prices.

As millions of ordinary UK punters lost their cash/savings/pensions after being persuaded by Thatchers Govt advertising to sink their savings into Utility shares etc those that had any left were quickly 'herded' into BTL which the City 'Financials' had set up ready over the previous years (devious 10-15yrs ie they got rid of the old style bank managers to enable the liar loan lending scams - approved by non-persons in regional banking centres.)

I know what your saying but im not saying people don't get burnt by bubbles. The only real winners are the people that get the money and run and the traders that spot the problems early on.

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Just a quick question for those who blame New Labour /Gordon Brown for the housing bubble / economic woes.

Was the 1990's housing bubble his fault too?

Was the 1990's recession / currency crisis his fault too?

Seems to me that there wasn't really a lot of difference between what happened then and what happened now except the colour of the ties worn in parliment but some of the frothing at the mouth supporters seem to be incapable of seeing both sides are equally shite.

...so your conclusion was they were right to blame Gordo for the current recession....?

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...so your conclusion was they were right to blame Gordo for the current recession....?

We're not technically in a recession. If we do go back into one it'll be on Osborne's watch.

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We're not technically in a recession. If we do go back into one it'll be on Osborne's watch.

technical recession means jack. two consecutvie quarters of negative growth. We came out of recession because labour spent all the money before an election. "We need to wake up from the dream we've been living in for the last 10 years" ( sorry to quote Willets there)

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technical recession means jack. two consecutvie quarters of negative growth. We came out of recession because labour spent all the money before an election. "We need to wake up from the dream we've been living in for the last 10 years" ( sorry to quote Willets there)

+ 1

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Just a quick question for those who blame New Labour /Gordon Brown for the housing bubble / economic woes.

Was the 1990's housing bubble his fault too?

Was the 1990's recession / currency crisis his fault too?

Seems to me that there wasn't really a lot of difference between what happened then and what happened now except the colour of the ties worn in parliment but some of the frothing at the mouth supporters seem to be incapable of seeing both sides are equally shite.

That was the Lawson Boom surely? The tories operated boom policies for 2-3 years, Brown did it for 13. The disgraceful bit is that he went on about making the BoE 'independent' (yeah, right) precisely to stop that kind of thing.

The currency crisis was surely the ERM? Something that there was broad support for across all 3 parties at the time. In fact IIRC support was proportionally greatest within liebour, not that you'll ever hear the BBC say that; although after much digging I did find this brief mention.

By 1992, Labour was a party that wanted to stay in what was now better known as the European Union; to join the European exchange rate mechanism; and supported in principle, albeit with qualifications (transmuted today into Gordon Brown's "five economic tests"), European monetary union.

http://news.bbc.co.uk/1/hi/uk_politics/1701014.stm

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technical recession means jack. two consecutvie quarters of negative growth. We came out of recession because labour spent all the money before an election. "We need to wake up from the dream we've been living in for the last 10 years" ( sorry to quote Willets there)

We came out of recession because of stimulus measures. Ireland chose the austerity route and became a complete basket case. Portugal too. The irony of Osborne's bleating is that in telling us his actions are leading us away from a Ireland or Portugal situation he is leading us straight at it like an express train. History will prove him to be an even greater baffoon than Gordon Brown and that is going some. Osborne is a feckin eejit.

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We came out of recession because of stimulus measures. Ireland chose the austerity route and became a complete basket case. Portugal too. The irony of Osborne's bleating is that in telling us his actions are leading us away from a Ireland or Portugal situation he is leading us straight at it like an express train. History will prove him to be an even greater baffoon than Gordon Brown and that is going some. Osborne is a feckin eejit.

You sir are incorrect. ireland and portugal are having austerity forced on them after subsequent bailouts. We are still vaguely in control of what we are cutting and that is a fine balancing act. We currently have the lower debt repayment interest than germany because of what Osborne has been saying. But don't watch what he says, watch what he does. The Uk government are not really cutting spending in real terms at all!

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You sir are incorrect. ireland and portugal are having austerity forced on them after subsequent bailouts.

Well yes of course they did as a condition of the bailout. The bit you maybe don't know about or are deliberately ignoring is what happened before.

Ireland was implementing austerity measures - cutting public spending and raising taxes in 2008, well before their bail out. All in the name of trying to retain the confidence of the international markets. It backfired. They were not rewarded for those actions. Quite the opposite. An unfortunate fool's errand that Osborne was chosen for us too.

The austerity measures just rejected in Portugal were the FOURTH package of austerity measures in the past year. The others were implemented.

You really musn't believe everything (in fact anything) Osborne says. He has us on the same tracks as the biggest basket case economies in Europe and the preventative actions he is lauding are arguably very similar actions to those that have dumped the Irish and Portugese in the crap.

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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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