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Joshy

Just A Thought

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The more you inflate a bubble the bigger the bang.

If the government doesn't understand that it would be beneficial to reduce house prices then surely it is best to encourage reckless schemes to inflate them?

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The more you inflate a bubble the bigger the bang.

If the government doesn't understand that it would be beneficial to reduce house prices then surely it is best to encourage reckless schemes to inflate them?

Yes, but IMO the present schemes have not a hope in hell of re-inflating any bubble, let alone the one that started to pop in 2007, the media would like us to buy the line that it will though, just like they would have us believe everyone is wetting themselves over the royal baby.

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The more you inflate a bubble the bigger the bang.

If the government doesn't understand that it would be beneficial to reduce house prices then surely it is best to encourage reckless schemes to inflate them?

That sounds like jesuitism, sophistry. If my attacker doesn't understand that it's not a good idea to cut my throat, then I should give him a nice sharp knife and offer him my throat? Pff. :blink:

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What the UK needs is a real property bubble, a bubble on top of a bubble. Most of the building blocks are in place except for the lack of building. Let me explain:

For the ultimate property megaponzi (think Ireland and China) you need the rise in lending (house prices) to create construction jobs. The construction workers paid from the newly created money buy more property thus creating more jobs... Ultimately you end up with thousands of new properties built and lots of jobless.

I think china is getting to the stage of their long business cycle where the building is slowing and the job losses are mounting.

Anyway, unless more building happens, thus creating jobs and feeding the bubble you are unlikely to see more that a 10%+/- shift in prices outside of London as the general affordability of repayments are restricted.

I believe you could see bigger falls in London when cash investors decide to dump their 'liquid' investments on the market, but this wont be until after the next part of the EU crisis that will be coming in Nov/Dec along with depositor bail-in.

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That sounds like jesuitism, sophistry. If my attacker doesn't understand that it's not a good idea to cut my throat, then I should give him a nice sharp knife and offer him my throat? Pff. :blink:

That's not a very good analogy. If the government expends its resources supporting huge Ponzi schemes it will eventually bankrupt itself and lose its ability to support said schemes. Without government support the schemes will collapse and asset prices will correct. Since the government seems unable to voluntarily decide not to support Ponzi schemes it might be better for the whole process to happen as quickly as possible so we can get back to a saner state of affairs sooner rather than later.

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That sounds like jesuitism, sophistry. If my attacker doesn't understand that it's not a good idea to cut my throat, then I should give him a nice sharp knife and offer him my throat? Pff. :blink:

I'd rephrase it as "my neighbour is making my life hell, but is just about staying on the right side of the law - I'm hoping he'll punch me so that I can get him evicted and locked up."

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The problem is that house prices really are the keystone of the UK economy- the collateral base upon which a vast empire of debt has been constructed.

So if there is a serious crash there will be short window of time in which houses are cheap followed by a genuine financial crisis that may well wipe out anyone who took to long to buy.

So if the tide does go out those STR's who still exist out there need to be nimble to avoid the tsunami of wealth extinction that will be coming afterwards.

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The problem is that house prices really are the keystone of the UK economy- the collateral base upon which a vast empire of debt has been constructed.

So if there is a serious crash there will be short window of time in which houses are cheap followed by a genuine financial crisis that may well wipe out anyone who took to long to buy.

So if the tide does go out those STR's who still exist out there need to be nimble to avoid the tsunami of wealth extinction that will be coming afterwards.

I suspect most would take their chances with that scenario rather than the status quo.

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The problem is that house prices really are the keystone of the UK economy- the collateral base upon which a vast empire of debt has been constructed.

So if there is a serious crash there will be short window of time in which houses are cheap followed by a genuine financial crisis that may well wipe out anyone who took to long to buy.

So if the tide does go out those STR's who still exist out there need to be nimble to avoid the tsunami of wealth extinction that will be coming afterwards.

TOO!!!!!!!

CAN'T YOU SPELL???????

"TOO LONG" NOT "TO LONG"!!!!!!!!!!

Jeeessss..... :angry: :angry: :angry:

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  • 242 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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