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Adam

A Couple Of Questions

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Hi, I have a couple of questions for you:

1. If the internet did not exist today, and the people on this website could not talk to each other and view this information, would the house price crash be any worse?

In other words, do you think that the large number of hits on this website will affect the way this house price crash happens? Will it render previous crash data useless (the internet wasnt around then). If so, how? If not, why?

2. Could inflation in Britain go so high that the house price crash looks like prices staying level? Would the people in power ever allow this to happen just to save face? What would this do to our economy?

Thanks in advance

Adam

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1. If the internet did not exist today, and the people on this website could not talk to each other and view this information, would the house price crash be any worse?

While this site is fairly active, we'd be deluding ourselves if we thought it has any significant influence on the UK housing market. Relatively few market participants are likely to be aware of its existence. From reading your first post on the forum, I believe you pulled out from a purchase before you found this site.

In other words, do you think that the large number of hits on this website will affect the way this house price crash happens?

Not in any measurable way.

2. Could inflation in Britain go so high that the house price crash looks like prices staying level?

In theory it could, but I regard this as unlikely. This particular house price correction is already under way. I do not see wages rising fast enough to accommodate current house prices over the necessary timescale. Therefore house prices will need to undergo a 'disorderly readjustment' with substantial drops in nominal prices.

Would the people in power ever allow this to happen just to save face?

The UK government have far less control over markets than they think and even less than they claim. If inflation was to take off it would almost certainly be a worldwide phenomenon led by the US. Recent sustained rises in interest rates in the US and elsewhere suggest that containing inflation is still a primary objective of central banks the world over.

What would this do to our economy?

As a general rule, levels of industrial unrest and currency instability correlate with inflation. See the 1970s for an example of a 47% HPC which was almost entirely disguised by rampant inflation.

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Hi, I have a couple of questions for you:

1. If the internet did not exist today, and the people on this website

could not talk to each other and view this information, would the house price crash be any worse?

In other words, do you think that the large number of hits on this website will affect the way this

house price crash happens? Will it render previous crash data useless (the internet wasnt around then). If so, how? If not, why?

I believe in the inevitable! (HPC forum or no HPC forum.)

Markets will cycle around and around. What will make it worse is the degree to which

It was allowed to inflate beyond common sense.

(I think only the Chinese took steps to control their house price inflation, this year)

2. Could inflation in Britain go so high that the house price crash looks like prices staying level?

Would the people in power ever allow this to happen just to save face?

What would this do to our economy?

If inflation takes off so will repossessions, people are too deep in debt.

The people in power (IMO) that will have to deal with this mess won’t be

Blair or Brown they just added to it.

I believe as our economy sinks, Blair’s reputation / legacy will be very different

To what he hoped for.

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  • 339 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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