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ZeroSumGame

There Are Many Classic Signs Of A Speculative Bubble

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A fine article from one of the analysts worthy of reading : Roger Bootle.

http://www.telegraph.co.uk/finance/comment/rogerbootle/10901558/Roger-Bootle-At-some-point-there-will-be-a-reckoning-on-house-prices.html#disqus_thread

The UK’s property market is an unmitigated disaster – born of misguided public policy, reinforced by the worst sort of short-term politics, of which “Help to Vote” is the most egregious recent example.

But anyone who thinks that residential housing currently presents an attractive medium-term investment needs to have their head examined – and their finances. :lol:

I'll be buying the book he is plugging. Enjoy ....

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A fine article from one of the analysts worthy of reading : Roger Bootle.

http://www.telegraph.co.uk/finance/comment/rogerbootle/10901558/Roger-Bootle-At-some-point-there-will-be-a-reckoning-on-house-prices.html#disqus_thread

I'll be buying the book he is plugging. Enjoy ....

Why would you buy his book that articles just has the usual balls thats its just a London bubble, and in 2003 didnt prices rise by 24% as oppose to fall as he predicted. By 2007 they would have dropped 50% or more without state intervention, he seemed to have miseed this bubble.

Bootle is just a boollshittter thats got lucky.

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I have learnt the hard way over the past 14 years to avoid Bootle's opinions on anything. I even bought one of his books in City Airport back in the early 2000s.

I can't even be bothered to read any of his articles now.

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Seems like a good article to me. However he doesn't say how long he thinks this will all go on for and how it might all come to an end. Like most of us he can see that there is a problem but has no idea what will happen!

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A ludicrous bubble, being denied, and almost no focus on those it's unfairly hurting. And the VI wriggle around and offer nothing but rubbish about not enough supply-to-demand = HPI, and never brook a view of falling prices being required. Happy with schemes to circumvent that, from outrageous levels values have reached. How many articles I've read this morning of newbuilds being bought up by BTLers - fgs.

http://metro.co.uk/2014/01/24/how-im-benefiting-from-londons-rental-market-4274737/

http://www.thisismoney.co.uk/money/mortgageshome/article-2586872/I-got-buy-let-investing-right-second-time-Landlords-best-rates-home-loans.html

http://metro.co.uk/2014/04/09/property-the-secrets-of-the-buy-to-let-pension-pot-4693123/

Even here Bootle... got to keep voters happy. My ills and that of many younger non-onwers I know of, including here with members renting for so many years, now with young children... having tried to do their best for their families to improve their long-term circumstances, not pay silly prices with jumbo mortgages and all the risk of that (job security/income/rate rises/little money to spend on family and life), could be solved by a massive hpc.

A dose of inflation could start to look like a cure for our current ills
By Roger Bootle7:09PM BST 29 Jul 2012
...What then? More austerity? At that stage the inflation option might seem attractive, not only to a few egghead professors but also to the voters – and hence to the politicians.

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Not anymore. Because of low inflation, pay is not rising so fast and accordingly the burden of mortgage debt is not being eroded as quickly. So mortgage affordability at a given level for initial borrowers does not amount to the same thing that it used to.

Does this guy have amnesia?

Since 2008, the average annual CPI has been 3.26% - not exactly low, is it?

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http://metro.co.uk/2...on-pot-4693123/

I could have bought an apartment in London or Hertfordshire and made more in rent but it’s the growth I’m more interested in.’

"It's the growth, man". This really says it all. The next crash has to be about the BTL'er looking for HPI. Maybe the cause will partly be falling rents with many low paid workers moving back to they own countries or to others to look for work which has dried up in the UK?

Just how long can this madness continue!?

Edited by renting til I die

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http://metro.co.uk/2...on-pot-4693123/

"It's the growth, man". This really says it all. The next crash has to be about the BTL'er looking for HPI. Maybe the cause will partly be falling rents with many low paid workers moving back to they own countries or to others to look for work which has dried up in the UK?

Just how long can this madness continue!?

As long as baby boomers have blood in their veins

Slow lingering real terms crash over 20 years

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As long as baby boomers have blood in their veins

Slow lingering real terms crash over 20 years

That is what many in my generation would like, but with people borrowing to the hilt on rock bottom interest rates I can't see it happening.

We have a massive speculative housing bubble, supported by easy credit, it won't slowly deflate over twenty years in real terms only.

When people wake up to the level of debt they are holding against overvalued property there will be a stampede for the exit as deflation sets in.

Edited by Bruce Banner

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