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tpsman

Mayor Admits House Price Should Fall 30%

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I was at the People's Question Time last night in Haringey. An interesting event for sure, and the anger about affordable housing was widespread. It seemed the biggest concern of almost everyone in the audience.

At one point bojo admitted that house prices needed to fall 30%,but swiftly added that we can't let that happen as the impact on the economy would be cataclysmic. Apparently his only option is to build and let wages increase. Labour assembly members pushed their long term renting agenda.

Any government ignoring housing is going to be booted out if last night's audience is anything to go by...

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I was at the People's Question Time last night in Haringey. An interesting event for sure, and the anger about affordable housing was widespread. It seemed the biggest concern of almost everyone in the audience.

At one point bojo admitted that house prices needed to fall 30%,but swiftly added that we can't let that happen as the impact on the economy would be cataclysmic. Apparently his only option is to build and let wages increase. Labour assembly members pushed their long term renting agenda.

Any government ignoring housing is going to be booted out if last night's audience is anything to go by...

Wow!

Was this recorded?

Edited by Bruce Banner

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I doubt a 30% fall would be 'cataclysmic'. Might be for whoever was in power though.

Illogical to say prices need to fall 30% and the result would be appalling for the economy IMO.

Edited by RentierParadisio

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I doubt a 30% fall would be 'cataclysmic'. Might be for whoever was in power though.

Illogical to say prices need to fall 30% and the result would be appalling for the economy IMO.

Thus cataclysmic....

I'm afraid I disagree.

http://www.aworldtowin.net/reviews/FearfulRiseMarkets.html

authersGDPgrowth.jpg

If this chart is accurate then house price falls are going to have a major impact on the economy, this chart is from the US economy.

Edited by interestrateripoff

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Of course, this is nothing new. Both the Conservatives and the LibDems (Cameron, Osborne and Cable) were highlighting Labour's housing bubble, prior to the last election, then they got into power and decided that their best chance of re-election was to pump it up some more.

Edited by Bruce Banner

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Of course, this is nothing new. Both the Conservatives and the LibDems (Cameron, Osborne and Cable) were highlighting Labour's housing bubble, prior to the last election, then they got into power and decided that their best chance of re-election was to pump it up some more.

Sad to say but seems to have worked

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...If this chart is accurate then house price falls are going to have a major impact on the economy, this chart is from the US economy.

It's just a distributional and how-you-measure-stuff thing. Government is a transfer mechanism, for better or worse, so one persons greater MEW opportunity is another's greater debt. Higher credit 'growth', higher unearned profits and lower disposable earned incomes vs. lower credit growth, lower unearned profits and higher disposable earned incomes. Longer term lower land and property costs mean better opportunities and more investment elsewhere.

We know this, BJ knows this. But anyone who's a net beneficiary obviously likes it the way it is, and with an election soon will say anything to placate a crowd.

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It's just a distributional and how-you-measure-stuff thing. Government is a transfer mechanism, for better or worse, so one persons greater MEW opportunity is another's greater debt. Higher credit 'growth', higher unearned profits and lower disposable earned incomes vs. lower credit growth, lower unearned profits and higher disposable earned incomes. Longer term lower land and property costs mean better opportunities and more investment elsewhere.

We know this, BJ knows this. But anyone who's a net beneficiary obviously likes it the way it is, and with an election soon will say anything to placate a crowd.

But why bother to make anything, or invest elsewhere, when the economy is based on selling houses to each other for ever increasing sums?

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But why bother to make anything, or invest elsewhere, when the economy is based on selling houses to each other for ever increasing sums?

Hopefully, eventually, because the financial and/or political returns to this particular control-mechanism parasite will be zero.

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I think a fall of 30% would be bad for the economy as a lot of people would be put into negative equity.

Sadly prices staying where they are is also bad as people are priced out. Sadly 18 years of new and blue Labour have not been good for us.

On the plus side we have nicer TVs and mobile phones now!

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But why bother to make anything, or invest elsewhere, when the economy is based on selling houses to each other for ever increasing sums?

You're close but you've got it a bit wrong. Our 6% current account deficit shows that our economy is built on selling houses to each other at ever increasing sums AND exporting them i.e. selling them to foreign people/institutions also at ever increasing sums (in GBP).

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I think a fall of 30% would be bad for the economy as a lot of people would be put into negative equity.

Sadly prices staying where they are is also bad as people are priced out. Sadly 18 years of new and blue Labour have not been good for us.

On the plus side we have nicer TVs and mobile phones now!

"Blue Labour" :lol:

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If this chart is accurate then house price falls are going to have a major impact on the economy, this chart is from the US economy.

Them not falling is going to have an even bigger one, eventually.

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Could somebody please explain what actually happens when demand > supply and prices are 30% lower?

The process........what happens next......

Ta.

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Could somebody please explain what actually happens when demand > supply and prices are 30% lower?

The process........what happens next......

Ta.

Disgruntled baby boomers say it's a disgrace and get very annoyed

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