How Long Will The Madness Go On?

[Trampa501]

Will this madness of ever rising (and unaffordable) house price rises, particularly in the south-east,go on for ever? Of course not, but how long can the markets stay irrational?

[Orsino]

Government policy is designed purely for the benefit of the banks. It will take another 3 years to sort out the likes of RBS. Then the policy will change.

[Orsino]

.

Edited October 6, 2013 by Orsino

[Harry Monk]

Until interest rates in the US start moving upwards, that's anybody's guess but mine is in about a year or so.

[19 year mortgage 8itch]

7 years or more

[The Spaniard]

Will this madness of ever rising (and unaffordable) house price rises, particularly in the south-east,go on for ever? Of course not, but how long can the markets stay irrational?

The irrational boom and bust madness will go on for as long as the irrational rent-a-currency debt-based money system remains.

Why on Earth should a supposedly self-determined trading and investing population of money users borrow its essential medium of exchange at interest from a private cartel? Why incur this huge expense? Why invite unsustainable credit bubbles?

It makes no sense when collectively, at negligible cost, we could readily issue our own adequate debt-free money supply to circulate persistently as a common utility.

The status quo is inherently irrational, the present grotesque bubble an inevitable symptom.

http://www.positivemoney.org/

[Fatmanfilms]

Will this madness of ever rising (and unaffordable) house price rises, particularly in the south-east,go on for ever? Of course not, but how long can the markets stay irrational?

They will continue whilst they are affordable.............at the point people stop paying the prices asked then they will fall.

If banks were to insist on 50% deposits house prices would fall to the point where people had 50% deposits.......Average house prices would fall to 60k or thereabouts.

Giving easy credit is the problem here.

[winkie]

[ReggiePerrin]

It won't end before 2017/18 IMHO.. we had multiple versions/releases of QE, so I don't think they'll stop at HTB2.

There's a lot of problems brewing at the moment which are going to take a few more years before they pop uncontrollably, e.g. IOM timebomb, an ageing population who haven't thought about pensions, interest rate rises; real austerity, rather than just talk about austerity, ...

[macbeth79]

6 months after the elections, then it will not matter.

[Kurt Barlow]

As long as it holds till next Spring...

Uk HPI up

UK £ up

AUS $ down

Perfick

[winkie]

It won't end before 2017/18 IMHO.. we had multiple versions/releases of QE, so I don't think they'll stop at HTB2.

There's a lot of problems brewing at the moment which are going to take a few more years before they pop uncontrollably, e.g. IOM timebomb, an ageing population who haven't thought about pensions, interest rate rises; real austerity, rather than just talk about austerity, ...

Have to agree....in order for it not to hit so hard it will have to taper down gradually......as a country presently living beyond our means, having failed to plan for the future, relying far too much on asset bubble pricing paid for with cheap debt.......pension provision for a large proportion of our ageing population will be barely enough to cover for food and energy never mind interest or rent, our youngsters can barely support themselves.....all will be revealed, how much will future governments realistically be able to guarantee?......do they have bottomless safety-net guarantee back-up pockets?

[tinker]

It won't end before 2017/18 IMHO.. we had multiple versions/releases of QE, so I don't think they'll stop at HTB2.

There's a lot of problems brewing at the moment which are going to take a few more years before they pop uncontrollably, e.g. IOM timebomb, an ageing population who haven't thought about pensions, interest rate rises; real austerity, rather than just talk about austerity, ...

IOM timebomb? Do the Manx know about this?

Interest Only Mortgage?

It will go on as long as LibLabCon are in control.

[eric pebble]

You ask the question: How long will this madness go on?

Well guys -- ALL of you who are reading this.... Just watch this video:

By the time you have watched just the first 35 minutes or so -- unless you are not that bright - you will see that, in many ways, we are in EXACTLY the same position as Lehman Brothers were in the few days before that "bank" collapsed completely back in September 2008..... AND nearly brought the world to a catastrophe like no other ever...

You will see that those idiot Banksters were SO greedy, and SO deluded that "property prices only go up".......

PROPERTY was THE KEY THING upon which the 2007-8 so-called "Financial Crisis" was based.... And property and house prices are STILL an atomic bomb - the largest atomic bomb in all known history -- just ticking away.......

It is interesting that STILL they call it the "Financial Crisis"...... Because in fact - it was a PROPERTY MARKET CRISIS - SO HUGE - THAT THE WHOLE WORLD could collapse as a result....

SO --- As you watch just the first 35 minutes of that video -

ASK YOURSELF: HAS ANYTHING CHANGED? HAS "THE CRISIS" GONE AWAY??

AND - AS YOU THINK ABOUT THE SO-CALLED "HOUSE PRICES" OF THE LONDON & UK "HOUSING MARKET" TODAY...... - YOU HAVE TO ASK YOURSELF - ARE THESE "PRICES" NOT AS DELUDED AND FALSE AS THE PROPERTY "PRICES" WHICH BROUGHT DOWN LEHMAN BROTHERS WERE IN 2008 - SO FALSE THAT THEY BROUGHT THE WORLD TO THE EDGE OF ABYSS....

HAS ANYTHING CHANGED?? THE ANSWER OF COURSE IS A RESOUNDING "NO"!!!!!!

AND - IF ANYTHING -- WE ARE AT A POINT THAT IS EVEN WORSE --- FAR, FAR WORSE.....

WE ARE AT THE EDGE OF AN EVEN GREATER ABYSS....

WE ARE LIVING IN TIMES TODAY WHICH ARE EVEN MORE DELUSIONAL AND CRAZY THAN THEY WERE BACK IN SEPTEMBER 2008.....

Edited October 6, 2013 by eric pebble

[eric pebble]

Part 2 here: http://fsrc2010.blogspot.co.uk/2011/03/bbc-love-of-money-episode-2-age-of-risk.html

Listen to Gordon Idiot-Brown in total denial....

I am yet to watch this all.......

Please do post your opinions!

[StainlessSteelCat]

Houses already looked over valued in 2003. Ten years on - it looks even worse - but every time you think it cannot possibly continue it somehow does as a new trick is pulled out of the bag.

That's not to say that there haven't been some dips along the way or that the picture is uniform across the country.

[dances with sheeple]

Houses already looked over valued in 2003. Ten years on - it looks even worse - but every time you think it cannot possibly continue it somehow does as a new trick is pulled out of the bag.

That's not to say that there haven't been some dips along the way or that the picture is uniform across the country.

Sales volumes were surging ahead in`03 though, they are not now? Big difference IMO. And stuff like this student/BTL/ single person flat 10 - 15 minutes by bus to Princes St. Edinburgh is struggling to achieve daft prices now. http://www.espc.com/...aspx?pid=329252

A few years ago there would have been a feeding frenzy to snap that up as a BTL.

Edited October 6, 2013 by dances with sheeple

[Eddie_George]

6 months after the elections, then it will not matter.

That's what we thought would happen last time...

[StainlessSteelCat]

Sales volumes were surging ahead in`03 though, they are not now? Big difference IMO. And stuff like this student/BTL/ single person flat 10 - 15 minutes by bus to Princes St. Edinburgh is struggling to achieve daft prices now. http://www.espc.com/...aspx?pid=329252

A few years ago there would have been a feeding frenzy to snap that up as a BTL.

Quite so, as I said it's not a uniform picture across the country. Try offering the same flat for 10 to 15 minutes bus ride to Oxford St in London at several times that price and it'll be snapped up. Bizarrely, it even looks fairly cheap from where I am in North Wales too - a market which is stagnating at best, and more likely slowly drifting downwards.

I honestly think you have to hope for the best (a massive house price crash) and plan for the worst (stagnation, perhaps even increases in some parts of the UK) for the next decade. It's a crap situation to be in though.

Edited October 6, 2013 by StainlessSteelCat

[South Lorne]

Will this madness of ever rising (and unaffordable) house price rises, particularly in the south-east,go on for ever? Of course not, but how long can the markets stay irrational?

...I remember people people talking about this in the 70's ....how long is that projected ...?....probably forever in your life time ...unless there is a disaster which will wipe everything out....

[Wurzel Of Highbridge]

...I remember people people talking about this in the 70's ....how long is that projected ...?....probably forever in your life time ...unless there is a disaster which will wipe everything out....

B0ll0x, I could find dozens of examples theat I know of (peoples parents) who were able to afford a reasonable house and standard of living in the 70's. Todays generation are completely fecked with debt (student and housing),

It would only take a small tick up in interest rates by say 2% for the apple cart to topple.

USA are increasingly desperate to attract cash into US bonds, in the last 6 months they have used Syria, and now a faux US shutdown to try and scare money into the security of US bonds and push the price down.

I think the low interest rates are coming to and end game, this is being forced by BRICS selling their massive US bond holding. If 10 year US bonds rise towards 5%, then you can bet UK bonds will rise and mortgage interest rates will resume their 7%+ rates.

Yes, UK and US don't want rising rates, but at the end of the day they are now a smaller part of a growing global system.

You may think that China wont crash the market as they have a lot to loose. Do they really? I don't think so because they hold valuable assets which are worth far more than paper USD.

That's right they are using their GBP, USE and EUR holdings to buy up assets and when the moment comes there will be another global crisis and this time they wont be able to print their way out.

At the end of the day all the paper money is worthless, only those with real assets are wealthy.

Timescale, hard to predict the demise of the west fiat currencies and house prices.

Within the next 10 years 100% chance

Within the next 5 years 80% chance

Within the next 3 years 50% chance

Within the next 2 years 30% chance

Within the next 1 year 25% chance

What this means for house price affordability (that is what we are talking about). The 1% will want to keep all their assets (land primarily) and the rest of us will continue to be slaves in their economy.

The current form of slavery is by using house prices via debt slavery. I would think the next for will be much of the same or via food prices.

Though house prices may become affordable, there will be some other way that the powers that be will steal everyone's money.

It will be high property prices, food prices, slave wages, high interest rates payable to private banks.

[wonderpup]

I used to think that sites like Zero Hedge were extreme in their predictions of an imminent collapse of the system- then I came around to the view that they were right and that the system was about to blow- but now I am coming to the view that the ability of those running things to keep on rigging the game is far more potent than many supposed.

The sheer complexity of the current set up will more than likely in the long run be it's undoing- but in the short run that complexity provides a lot of cover for the people in charge to fudge and obfuscate and out right lie without being exposed to any ultimate denouement.

So I went for the 3-7 years option in the poll- there are still rabbits to be pulled out of hats I think, before the magic trick is finally exposed.

[eric pebble]

I used to think that sites like Zero Hedge were extreme in their predictions of an imminent collapse of the system- then I came around to the view that they were right and that the system was about to blow- but now I am coming to the view that the ability of those running things to keep on rigging the game is far more potent than many supposed.

The sheer complexity of the current set up will more than likely in the long run be it's undoing- but in the short run that complexity provides a lot of cover for the people in charge to fudge and obfuscate and out right lie without being exposed to any ultimate denouement.

So I went for the 3-7 years option in the poll- there are still rabbits to be pulled out of hats I think, before the magic trick is finally exposed.

By which time things will be SO, SO bad - that we will be COMPLETELY F*cked forever..... :angry:

[Wurzel Of Highbridge]

There are a couple around here who think that things are returning to normal and indeed the world economy is not fecked.

This time next year we will all be millionaires Rodney.

Actually talking of next year, I guess there will be fewer PPI claims to keep the plates spinning and IF the economy is a PONZI scheme it will be progressively harder to prop up - we will see.

Essentially the next 12 months is make-break as if self sustaining GLOBAL recovery, if not then the ship is likely to go down.

The UK will not recover without it's major trading partners.

[winkie]

There are a couple around here who think that things are returning to normal and indeed the world economy is not fecked.

This time next year we will all be millionaires Rodney.

Actually talking of next year, I guess there will be fewer PPI claims to keep the plates spinning and IF the economy is a PONZI scheme it will be progressively harder to prop up - we will see.

Essentially the next 12 months is make-break as if self sustaining GLOBAL recovery, if not then the ship is likely to go down.

The UK will not recover without it's major trading partners.

What no PPI claim money to pay the 5% deposit on the house or the deposit on the car, what about all the PPI claim jobs that will be lost. Who can we next blame and claim to keep the plates spinning?......