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HOLA441
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HOLA442
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HOLA443

So teenagers pointing out that Housing is not in the inflation basket.

Wages going down.

Buy-to-Let pushing prices up (setting prices at the margins I would have argued).

CPI flirting with deflation while Housing inflation goes into a caricature of stratospheric.

Help-to-Buy politically motivated stimulus

'Affordable Housing' - in particular in London - a joke.

Lack of social housing means no brake on inflation.

And so on. Not a room of economists - just the Question Time crowd.

But Sajid David, says its all OK, no bubble, nothing to see here move on...

How long can this go on for now ?

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HOLA444

I don't usually watch QT but this topic was just starting as I turned on the TV.

All the audience and all but one of the panel were against the HPI madness.

That Javid guy is such a tw@t. Even though I know he must be bright he comes over as really thick. He just kept saying that there isn't a bubble because the "experts" at the BoE say there isn't.

Martin Sorrell made a good point which is that something is very wrong when inflation is at 1.8% and many are worried about deflation but house prices are going up 20% per year and that this means it has to be a bubble.

Edited by oldsport
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HOLA445
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HOLA449
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HOLA4410

Did you see the shock on Sajid's face when that guy in the audience made the point about house prices not recorded in CPI figures? - P1ssed in Sajid's fire when he was giving it all large about how low they managed to get CPI. I think the guy should have continued and made a third point about how con Carney made the recent speach on how he has no control over house bubble. That would have been the icing on the cake!

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HOLA4411

The sentiment against help to buy must be worrying for the Tories- it was designed to purchase votes, not lose them- but more and more people seem to view HTB as an irresponsible gaming of the system for political advantage rather than a genuine attempt to address the housing issue.

It took a member of the audience to make the point that relying on the BoE to see the danger coming is a bit stupid given their failure to see the last crash coming.

Another good point made was that the low inflation figures do not include house prices,which is a joke in itself.

So George has got his bubble but people are not as happy as he expected them to be about it- this was not in the script.

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HOLA4412

So teenagers pointing out that Housing is not in the inflation basket.

Wages going down.

Buy-to-Let pushing prices up (setting prices at the margins I would have argued).

CPI flirting with deflation while Housing inflation goes into a caricature of stratospheric.

Help-to-Buy politically motivated stimulus

'Affordable Housing' - in particular in London - a joke.

Lack of social housing means no brake on inflation.

And so on. Not a room of economists - just the Question Time crowd.

But Sajid David, says its all OK, no bubble, nothing to see here move on...

How long can this go on for now ?

Now it has been on QT you mean?

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HOLA4413
So teenagers pointing out that Housing is not in the inflation basket.

Wages going down.

Buy-to-Let pushing prices up (setting prices at the margins I would have argued).

CPI flirting with deflation while Housing inflation goes into a caricature of stratospheric.

Help-to-Buy politically motivated stimulus

'Affordable Housing' - in particular in London - a joke.

Lack of social housing means no brake on inflation.

And so on. Not a room of economists - just the Question Time crowd.

But Sajid David, says its all OK, no bubble, nothing to see here move on...

How long can this go on for now ?

Yes- the natives grow restless. Maybe the interweb has corrupted their bovine stupidity with a degree of actual insight? If so this could be bad news indeed for the political class, who have honed their ability to spout arrant nonsense with perfect sincerity to the level of an art form.

That bald w*nker looked distinctly taken aback that the studio audience had a real grasp of the issues I thought- quite funny to watch. Help to buy votes is not as popular an idea as he expected.

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HOLA4414

The best case result from this is the bubble finally popping just prior to the election, and labour getting in just prior to the effects being felt by the over indebted. That way labour get to pay for the bubble they caused on their watch at last, and with any luck they're be out following that mess for several generations. Maybe thats the plan? But then again maybe not :lol:

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HOLA4415

Yes- the natives grow restless. Maybe the interweb has corrupted their bovine stupidity with a degree of actual insight? If so this could be bad news indeed for the political class, who have honed their ability to spout arrant nonsense with perfect sincerity to the level of an art form.

That bald w*nker looked distinctly taken aback that the studio audience had a real grasp of the issues I thought- quite funny to watch. Help to buy votes is not as popular an idea as he expected.

pity balls up seems to like it too.

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HOLA4416
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HOLA4417

I switched off when the banker-replacement said the BOE were the experts.

He's not a Goldmanite (Deutsche Bank instead), and strangely he got his seat in parliament after a previous expense-scandal resignation: https://en.wikipedia.org/wiki/Sajid_Javid

Hopefully the story about audience reaction is true.

There was a collective groan at one point to something Javid said - I can't remember hearing that from a QT audience (although I rarely watch these days) - I think it was when he said it would be different his time because the BoE were now in control of bubbles and previously it had been the FSA.

They seemed a pretty clued up audience.

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HOLA4418

There was a collective groan at one point to something Javid said - I can't remember hearing that from a QT audience (although I rarely watch these days) - I think it was when he said it would be different his time because the BoE were now in control of bubbles and previously it had been the FSA.

They seemed a pretty clued up audience.

I don't think he would be factually correct in saying that.

The FSA (Financial Services Authority) was responsible for financial regulation (it was an abject failure on that) but it didn't ever have a brief to control house price bubbles.

If any organisations were responsible for controlling house price bubbles at the time when the FSA was helping to create mayhem in financial services then it was the BoE and the government.

It's different now of course as now the government says that the BoE has the power to stop a house price bubble - but the BoE says it hasn't got the power - at least for London which is clearly in a bubble. By implication the BoE is saying it's only the government that has the power but government keeps repeating that the BoE has the power - it's even blatantly repeated on QT. It's a Mutt and Jeff act, a double bind.

Edited by billybong
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HOLA4420

I don't think he would be factually correct in saying that.

The FSA (Financial Services Authority) was responsible for financial regulation (it was an abject failure on that) but it didn't ever have a brief to control house price bubbles.

If any organisations were responsible for controlling house price bubbles at the time when the FSA was helping to create mayhem in financial services then it was the BoE and the government.

It's different now of course as now the government says that the BoE has the power to stop a house price bubble - but the BoE says it hasn't got the power - at least for London which is clearly in a bubble. By implication the BoE is saying it's only the government that has the power but government keeps repeating that the BoE has the power - it's even blatantly repeated on QT. It's a Mutt and Jeff act, a double bind.

The big fat pig with the sloping shoulders in the room is the bankrupt of england.

Who through the 2000 bubble set intereest rates low to stimulate debt after the tech bubble - the boe.

Who has/had a dual mandate for financial stability as well as inflation - the boe.

Who were given the independence and trumpeted that indepenedence to act in the best interests outside of short term political interest, the boe.

Did they? No.

Who just bailed out the banks, The boe, they bailed out their mates and co-debtmongers.

Who new about scams in the background like Libor and did nothing about it - the boe.

Edited by onlyme2
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HOLA4422

It's all very well for ordinary people to have cottoned onto the idea that housing is too expensive, that this is deliberate government policy, and that expensive housing is bad for most ordinary people, but have they thought this through to the point where they can guess what might happen were this not the case i.e. falling house prices leading to negative equity and rising interest rates for overleveraged borrowers, mortgage defaults and repossessions, major banks going bust leading to either haircuts for investors or another round of taxpayer bailouts?

Something tells me the QT audience's attitude is more like a grumpy child not wanting to live with the consequences of their own actions rather than a decision based on comparing the outcomes of different policies.

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HOLA4423

It's all very well for ordinary people to have cottoned onto the idea that housing is too expensive, that this is deliberate government policy, and that expensive housing is bad for most ordinary people, but have they thought this through to the point where they can guess what might happen were this not the case i.e. falling house prices leading to negative equity and rising interest rates for overleveraged borrowers, mortgage defaults and repossessions, major banks going bust leading to either haircuts for investors or another round of taxpayer bailouts?

Something tells me the QT audience's attitude is more like a grumpy child not wanting to live with the consequences of their own actions rather than a decision based on comparing the outcomes of different policies.

It rather depends on their situation wrt housing and investments.

If they are renting, or own a home outright or with a small mortgage, and/or don't have direct investments in banks, then quite possibly they wouldn't care about the above even if they have thought about it.

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HOLA4424

IMO they all apart from the new appointment spoke in a real honest and open way......the new guy was talking like a clone of the PM same style, and didn't come over as speaking in a genuine way, as if he was towing party policy with respect to London housing bubble prices......the audience are not fools. ;)

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