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tomandlu

Osborne: 'let's Not Pretend There's A Housing Boom'

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Let's not pretend that the chancellor isn't full of shite...

http://www.bbc.co.uk/news/business-24144844

Answering questions at the annual meeting of the Institute of Directors he said: "Let's not pretend there's a housing boom".

The chancellor pointed out that housing sales and mortgage approvals are still well below the boom years.

ffs... and why are sales and approvals still well below the boom years? Is he thick or does he think we are?

Edited by tomandlu

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Coppolacomment calls this jackass out:

As my regular readers know, I am determinedly politically non-aligned, so what I am going to say now will probably shock a lot of people. Osborne's behaviour both angers and frightens me. He is playing brinkmanship with the UK economy to achieve political ends. Nothing he does makes much sense from an economic point of view - which is why the flagship Help to Buy scheme has been universally panned, even by his own department and by people from his own party. But if you view his actions as entirely determined by his desire to secure a Conservative victory in 2015, it all makes perfect sense. He is dangerous.

And she defends that in the comments section.

http://coppolacomment.blogspot.co.uk/2013/08/the-illusory-housing-recovery.html

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the problem here is we're already in a bubble, and as far as London is concerned apart from the blip in 2008 it a bubble on steroids.

what planet is this fool on? it's wreckless and desctructive.

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To be fair generally speaking - outside London - he is right.

Not that i agree with some of the ridiculous 'schemes' they have to try and get it going again.

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To be fair generally speaking - outside London - he is right.

Not that i agree with some of the ridiculous 'schemes' they have to try and get it going again.

Not really - the best metric is wages / prices, and on that count nowhere is out of bubble territory afaik...

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To be fair generally speaking - outside London - he is right.

Not that i agree with some of the ridiculous 'schemes' they have to try and get it going again.

Trouble is, London's house price bubble is big enough to take down the entire UK economy.

It shouldn't be ignored by politicians, they should be frit stiff by it.

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To be fair generally speaking - outside London - he is right.

Not that i agree with some of the ridiculous 'schemes' they have to try and get it going again.

No way!

Because London has gone ballistic it may appear that way by comparison, but the bubble remains everywhere, even in Northern Ireland.

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I was meaning as in the existing 'boom' is still deflating and there is not a new one starting.

We are certainly not back to 'normal' by any means.

I think Osborne was talking about this apparent 'new' boom the media has been having a *****fest about ?

Edited by ccc

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I think it's all a big (intentional) confusion of absolute values and rates of change.

A common argument on HPC is that house prices are in a "bubble" because they are too expensive in absolute values i.e. the number of pounds it costs to buy one.

The media associates housing "booms" with rates of change i.e. high numbers of sales and high positive percentage changes in house prices.

It's similar to the debt/deficit muddle, perfect for politicians playing mind games with uneducated voters and lazy journalists.

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Surely a housing boom is one where lots of houses are built/fall from sky.

As distinct from a house price boom where there is no change in housing but a bubble in prices.

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I think it's all a big (intentional) confusion of absolute values and rates of change.

A common argument on HPC is that house prices are in a "bubble" because they are too expensive in absolute values i.e. the number of pounds it costs to buy one.

The media associates housing "booms" with rates of change i.e. high numbers of sales and high positive percentage changes in house prices.

It's similar to the debt/deficit muddle, perfect for politicians playing mind games with uneducated voters and lazy journalists.

Very true. I'm sure Osborne's rehearsed his lines at length to exploit the confusion. Pointing out that peak prices generally coincide with reduced transaction numbers is something lazy journalists are unlikely to do and uneducated voters unlikely to apprehend.

hpi_report.gif

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Osbourne's Ratner moment. I hope someone got it on camera as he'll likely deny it in years to come.

There was a good Ratner interview on the radio a few days ago - thought it was R4, but can't find it.

By his own account he lost almost everything because his wealth was tied up in the company's shares, which sank 99%. Then six years of depression - "watching Countdown" (ugh, the Vorderman days!) - which ended when his wife threatened to kick him out. Sounds like he came close to leaving Hotel California.

He's back with an online jewellery business. How did he break in? His notoriety drove traffic to the website. Obviously he's a talented retailer, but he was clear on that point.

Celebrity is everyfink, Simon.

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To be fair generally speaking - outside London - he is right.

Not that i agree with some of the ridiculous 'schemes' they have to try and get it going again.

i agree, london is in a bubble for sure, but much of the rest of the UK is on a much more even keel. still expensive in capital terms, but affordable in repayment terms.

one issue thats not really looked at is that since the right to buy in the 80's, home ownership changed in the UK and many people have had the chance to buy homes and have paid off their mortgage by now.

less than 2 in 5 houses in the UK has a mortgage on it so it may not be appropriate to compare house prices to earnings with say the 80's, given that a lot capital has accumulated in housing in that time.

so for example if lots of people started getting mortgages for the first time on a PE of say 3 in the 80's, average house prices in the UK might be slightly above this figure.

by the time it comes to 2014, house prices will have to reflect the fact that many people have accumulated money in their house so todays house prices maybe more along the lines of £100,000 + an average PE of 3.

Edited by mfp123

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Let's not pretend that the chancellor isn't full of shite...

http://www.bbc.co.uk/news/business-24144844

ffs... and why are sales and approvals still well below the boom years? Is he thick or does he think we are?

He does think we are thick. He is nothing more than a man set on trying to win the next election. No thought for the future, the price of living under a roof, the competitiveness f the economy and the pressure on wages and inflation to keep up.

It is actually really selfish. He will regret it and will be seen for the idiot he obviously is. The Conservatives are no better than Labour.

The 'growth' based on ultra low and mad interest rates, together with crazy oublic borrowing - itself at likely unsustainable rates and building an unpayable national debt - is going to turn out illusory as usual. This country has no one with any vision, balls or even common sense for the future. No long term thoughts in their heads. Really disheartening.

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He does think we are thick. He is nothing more than a man set on trying to win the next election. No thought for the future, the price of living under a roof, the competitiveness f the economy and the pressure on wages and inflation to keep up.

It is actually really selfish. He will regret it and will be seen for the idiot he obviously is. The Conservatives are no better than Labour.

The 'growth' based on ultra low and mad interest rates, together with crazy oublic borrowing - itself at likely unsustainable rates and building an unpayable national debt - is going to turn out illusory as usual. This country has no one with any vision, balls or even common sense for the future. No long term thoughts in their heads. Really disheartening.

luckily labour put up the cost of standing for election so the chance of 600 decent human beings spontaneously standing for parliament is zero.

its like...they have a closed shop.

ukip or bust.

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Osborne and his Parliamentary chums are basically 'squaring up' to the electorate by denying an obvious truth. Bullies to the core.

I usually avoid political campaigners but this time I'll be praying they knock on my door. As I live in one of the 40 most vulnerable seats it might not be far fetched.

Miliband's silence on the issue is also noted.

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Let's not pretend that the chancellor isn't full of shite...

http://www.bbc.co.uk/news/business-24144844

ffs... and why are sales and approvals still well below the boom years? Is he thick or does he think we are?

obvious really..he thinks we are,but does not have the intelligence(or has complacency in spades) to realise we've figured it out and the jig is well and truly up.

liblabcon are history......just like the repubicrats acros the pond.

we are entering a very significant period in history.

..the yanks have had 240 years or so since their declaration of independence.....and when that one kicks off, it'll be huge.

we've had about 700 years since the magna carta(and stuff like declaraion of arbroath)

...ours is going to be feckin enormous.

both retain the same points.....like get stuffed to pompous overlords.

(as an aside, the muslims are getting their version too.......of the protestant reformation..soonafter the hardline clerics have thrown their toys out of the pram one last time....same sh1t different century...

"heretic" modernisers at odds with established clerics desperate to hang on to their trappings of power

....boy it's gonna be messy if the protestant/catholic stuff is anything to go by.....and that's still work in progress because of blair and his mates......rather than bring everybody together,he's probably cemented another 100 years or so of sectarian bloodshed over here...because his boss told him that they are right and everybody else should convert or die.

poetic justice would really be for the real hardcore radical islamists who don't give a monkeys about controlling all world commerce etc to "convert" people.., to come and rob them of all their worldly (and ill gotten) gains (that they took from robbing those pesky heretic protestants in old blighty and across the pond),and make them "convert to the true faith" under pain of death.

so similar in ideaology, perfect karma......temporary chastisement but a necessary cleansing to bring them back to reality and start walking the walk, as well as talking the talk.

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the problem here is we're already in a bubble, and as far as London is concerned apart from the blip in 2008 it a bubble on steroids.

what planet is this fool on? it's wreckless and desctructive.

it's meant to be.

he hasn't figured out that we know that bit yet.

certian elements of our clandestine political/corporate elite in all their shady gatherings in smoke-filled rooms have not yet got a grasp of the fact that we know what they are up to(and it actually does add up to high treason)

...and very, very shortly...after they make their move in april next year......their staged act of terrorism will be exposed...

...and the yanks will engage in mass round-up and disposal(yes I mean execution) of said group members and associates.

not hiding out in bunkers.

by september 2015 the UK,scotland and ireland will be under control of US/Canadian miltary Garrison.

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Osborne and his Parliamentary chums are basically 'squaring up' to the electorate by denying an obvious truth. Bullies to the core.

I usually avoid political campaigners but this time I'll be praying they knock on my door. As I live in one of the 40 most vulnerable seats it might not be far fetched.

Miliband's silence on the issue is also noted.

Yes indeed, the supposed party of the working class looking the other way whistling...pathetic

Not that I've got any interest in anything the idiot Balls would have to say.

My contempt for all three main parties really is plumbing new depths.

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poetic justice would really be for the real hardcore radical islamists who don't give a monkeys about controlling all world commerce etc to "convert" people.., to come and rob them of all their worldly (and ill gotten) gains (that they took from robbing those pesky heretic protestants in old blighty and across the pond),and make them "convert to the true faith" under pain of death.

so similar in ideaology, perfect karma......temporary chastisement but a necessary cleansing to bring them back to reality and start walking the walk, as well as talking the talk.

indeed. I wonder when the first hardline islamist (also know as honest reader of the koran) will be elected in the UK.

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