Hpi = Gdp

[frederico]

I just had to put into words the totally ridiculous situation.

Say 10% of houses sell at slightly higher prices, we can extrapolate this rise to the other 90% and add this lovely new number to GDP.

And still we only get 0.8% growth or something.

The local school sent out an email requesting food items for a food bank at a local church.

I live in a small reasonably prosperous town.

Meanwhile some MP claims 3 grand for heating his stables.

I really hate the way things are run

Happy Christmas

[tinker]

Dissonance is the word.

Been done many times here the importance of HPI (debt and the release of imaginary equity) to the UK economy. It is a confidence trick. What has caught us out on here is the gravity-defying, 'at any cost' propping up of false markets for short-term political gain.

[interestrateripoff]

http://onlinelibrary.wiley.com/doi/10.1111/j.1467-856X.2009.00380.x/abstract

Covered here in this paper although for me somewhat poorly.

[SuperChimp]

And that is why the government will continue to do anything it can to protect both the banking industry and those with large mortgages.

They have to keep house prices high at all costs.

[plummet expert]

Dissonance is the word.

Been done many times here the importance of HPI (debt and the release of imaginary equity) to the UK economy. It is a confidence trick. What has caught us out on here is the gravity-defying, 'at any cost' propping up of false markets for short-term political gain.

It will be written up in history as another glorious treasury led mistake - Barber boom, Lawson Boom, Brown Boom, Osborne boom. When will we learn? : they were all based on land and property and lending/borrowing too much.

It has struck me that the only period of strong recovery without a balance of payments crisis in my life time was afteer the property crash of 1989-1994. It in fact feed us temporarily from the nonsense this causes. We alos resumed a free currency by pulling out of the Exchnage Rate Mechanism ( the precursor to joinig the Euro, which thank God went wrong for us).