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BobTheBear

Merryn Spot-On Again

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Her assessment of the UK housing market:

http://moneyweek.com/how-the-government-has-fiddled-the-housing-market/?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning#respond

Someone called BorisMacDonut (aptly named) doesn't get it however, read his view under comments at the bottom. What he conveniently forgets is the absolute impossibility of any normal person ever paying off the capital of today's 'affordable in historic terms' mortgage during their lifetime - barring rampant inflation of course - which will probably happen sometime (but when?)

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Her assessment of the UK housing market:

http://moneyweek.com...Morning#respond

Someone called BorisMacDonut (aptly named) doesn't get it however, read his view under comments at the bottom. What he conveniently forgets is the absolute impossibility of any normal person ever paying off the capital of today's 'affordable in historic terms' mortgage during their lifetime - barring rampant inflation of course - which will probably happen sometime (but when?)

Key line for me is " most people think the scheme will work as long as borrowers are persuaded that it is possible for house prices to keep rising — as they usually do" IMO the sentiment that used to believe that is gone. People I know trying to sell now are talking about cutting the price until they get out, no messing about. The sheeple know HPI is over, and there is nothing "they" can do about that, even if they wanted to.

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It comes down to what Sir Mervyn calls the “paradox of policy”, whereby “policy measures that are desirable in the short term appear diametrically opposite to those needed in the long term”.

Sir Mervyn calls it the "paradox of policy" :lol::lol:

More obfuscation as if there hasn't been enough already from the BoE.

Some bankers have called it a moronic policy which is at least straight to the point.

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Sir Mervyn calls it the "paradox of policy" :lol::lol:

More obfuscation as if there hasn't been enough already from the BoE.

Some bankers have called it a moronic policy which is at least straight to the point.

" Sir Mervyn calls the “paradox of policy”, whereby “policy measures that are desirable in the short term appear diametrically opposite to those needed in the long term”.

= kicking the can.

B@stard.

.

Edited by Tired of Waiting

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" Sir Mervyn calls the “paradox of policy”, whereby “policy measures that are desirable in the short term appear diametrically opposite to those needed in the long term”.

= kicking he can.

B@stard.

That will be Lord B@stard

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It comes down to what Sir Mervyn calls the “paradox of policy”, whereby “policy measures that are desirable in the short term appear diametrically opposite to those needed in the long term”.

His track record on housing isn't good by any stretch of the imagination but does what he is saying have some underlying significance and meaning other than the usual obfuscation and what could it be. He appears to be saying that he recognises that high house prices aren't good for the economy but the current short term kick the can measures will (paradoxically) in the long term achieve the objective of lower house prices which will be good for the economy.

Even if he is right then how long does the UK have to wait "long term" for house prices to be at a level good for the economy. Another year, 5, 10, 50 years? Some time in the distant future when people have to look up in some dusty archive to find out who was governor in the 10 years from 2003 to 2013?

It does start to sound like another of his pigs might fly moments and another of his jam tomorrow moments and of course he is well known for being on both sides of the argument at once and then ending up smelling of roses. Look at the latest honour bestowed as (paradoxically) he leaves with the economy in ruins and inflation increasing again.

Unfortunately for the UK economy it just seems to be another of his jam tomorrow, on the fence, pigs might fly, pie in the sky moments.

It's good jam but it's tomorrow.

Edited by billybong

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The good Merryn said:

The reason, and the only reason, that house prices have not collapsed in Britain as they have in, say, the US and Ireland is because the government has not allowed them to

Back in 2004, I was arguing with some pro-property girl at work about house prices being too expensive fuelled by cheap money. I said they will fall sooner or later there is a massive bubble forming, she told me "The government wouldn't let it happen".

My response to this was there is nothing anyone can do about market forces and there is nothing the government could do, there was nothing they could do last time either.

Looks like I should have listened to her, but who could have thought it. I remember people on here at the time having similar grief from people at dinner parties etc and the line from most posters here was the government can't do anything once the fall starts. Who was right?

The government can't afford another bail out of the banks this time can they? Next time it will be an almighty crash, worse than 2007

Edited by Spoony

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The good Merryn said:

[/b]

Back in 2004, I was arguing with some pro-property girl at work about house prices being too expensive fuelled by cheap money. I said they will fall sooner or later there is a massive bubble forming, she told me "The government wouldn't let it happen".

My response to this was there is nothing anyone can do about market forces and there is nothing the government could do, there was nothing they could do last time either.

Looks like I should have listened to her, but who could have thought it. I remember people on here at the time having similar grief from people at dinner parties etc and the line from most posters here was the government can't do anything once the fall starts. Who was right?

The government can't afford another bail out of the banks this time can they? Next time it will be an almighty crash, worse than 2007

The government has not been able to allow people to keep trading at peak prices when they please, that is the massive turnaround from the bubble years, most people are stuck in the house they bought, and know it. The government intervention just lets people cling on until outside events (now striding on to the stage?) intervene and blow up the UK Ponzi culture. Well worth the wait IMO :P

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Her assessment of the UK housing market:

http://moneyweek.com...Morning#respond

Someone called BorisMacDonut (aptly named) doesn't get it however, read his view under comments at the bottom. What he conveniently forgets is the absolute impossibility of any normal person ever paying off the capital of today's 'affordable in historic terms' mortgage during their lifetime - barring rampant inflation of course - which will probably happen sometime (but when?)

Hamish?

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The government has not been able to allow people to keep trading at peak prices when they please, that is the massive turnaround from the bubble years, most people are stuck in the house they bought, and know it. The government intervention just lets people cling on until outside events (now striding on to the stage?) intervene and blow up the UK Ponzi culture. Well worth the wait IMO :P

+1 :lol::rolleyes:

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  • 244 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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