tpsman Posted March 20, 2015 Share Posted March 20, 2015 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... Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 20, 2015 Share Posted March 20, 2015 (edited) 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 March 20, 2015 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
@contradevian Posted March 20, 2015 Share Posted March 20, 2015 (edited) 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 March 20, 2015 by RentierParadisio Quote Link to comment Share on other sites More sharing options...
Guest_growlers_* Posted March 20, 2015 Share Posted March 20, 2015 http://m.haringeyindependent.co.uk/news/11868739.___Massively_out_of_touch____Boris_Johnson_heckled_at_People___s_Question_Time/ Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 20, 2015 Share Posted March 20, 2015 (edited) 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 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 March 20, 2015 by interestrateripoff Quote Link to comment Share on other sites More sharing options...
Guest_growlers_* Posted March 20, 2015 Share Posted March 20, 2015 The BIS reported 2 days ago on this. Deflation OK. House price falls huge impact. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 20, 2015 Share Posted March 20, 2015 (edited) 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 March 20, 2015 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
Guest_growlers_* Posted March 20, 2015 Share Posted March 20, 2015 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 Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted March 20, 2015 Share Posted March 20, 2015 Can't let them fall, so him and his rich mates stay rich. that's not an economy, that's a crime. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted March 20, 2015 Share Posted March 20, 2015 The BIS reported 2 days ago on this. Deflation OK. House price falls huge impact. House price inflation devastating. Rich happy. More angry than ever. Quote Link to comment Share on other sites More sharing options...
Maynardgravy Posted March 20, 2015 Share Posted March 20, 2015 The only thing he'll build is water cannon. Quote Link to comment Share on other sites More sharing options...
Guest_northshore_* Posted March 20, 2015 Share Posted March 20, 2015 ...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. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 20, 2015 Share Posted March 20, 2015 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? Quote Link to comment Share on other sites More sharing options...
Guest_northshore_* Posted March 20, 2015 Share Posted March 20, 2015 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. Quote Link to comment Share on other sites More sharing options...
canbuywontbuy Posted March 20, 2015 Share Posted March 20, 2015 Maybe there really is a meteor on the way, and the politicians are just killing time before it hits. Quote Link to comment Share on other sites More sharing options...
shindigger Posted March 20, 2015 Share Posted March 20, 2015 Maybe there really is a meteor on the way, and the politicians are just killing time before it hits. Yup. Have your pension now....****** it, go nuts. Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted March 20, 2015 Share Posted March 20, 2015 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! Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted March 20, 2015 Share Posted March 20, 2015 PS for houses in my road to go back to 1992 prices relative to wages they would have to fall by 75%! 25% would only take us back to 2006 prices relative to wages. Quote Link to comment Share on other sites More sharing options...
bankstersparadise Posted March 20, 2015 Share Posted March 20, 2015 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). Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted March 20, 2015 Share Posted March 20, 2015 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" Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted March 20, 2015 Share Posted March 20, 2015 "Blue Labour" Agreed, that is superb. The first blue tie wearing tw4t to turn up on my doorstep is going to get a barrage full of that Quote Link to comment Share on other sites More sharing options...
DabHand Posted March 20, 2015 Share Posted March 20, 2015 Thus cataclysmic.... I'm afraid I disagree. http://www.aworldtowin.net/reviews/FearfulRiseMarkets.html 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. And which way is the causal relationship? Careful! Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted March 20, 2015 Share Posted March 20, 2015 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. Quote Link to comment Share on other sites More sharing options...
R K Posted March 20, 2015 Share Posted March 20, 2015 Could somebody please explain what actually happens when demand > supply and prices are 30% lower? The process........what happens next...... Ta. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 20, 2015 Share Posted March 20, 2015 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 Quote Link to comment Share on other sites More sharing options...
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