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canbuywontbuy

In World's Best-Run Economy, House Prices Keep Falling -- Because That's What House Prices Are Supposed To Do

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http://www.forbes.com/sites/eamonnfingleton/2014/02/02/in-worlds-best-run-economy-home-prices-just-keep-falling-because-thats-what-home-prices-are-supposed-to-do/

On Wiles’s figures, German house prices in 2012 represented a 10 percent decrease in real terms compared to thirty years ago. That is a particularly astounding performance compared to the UK, where real prices rose by more than 230 percent in the same period.

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Less people have to spend on debt, the more they can spend elsewhere in the economy....the more therefore businesses will invest in a growing consumer demand.......people with high debt do not take on more debt, do not go out, do not travel, do not eat in resturants do not buy new white good upgrades extra luxturies........high house prices promotes stagnation and falling demand, low growth and productivity.....choices.

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For thirty years we have invested in property and the Germans have invested in industrial production and look where it has got them. Our piles of bricks are worth trillions and all they have are some rented flats and a few (so last century) factories. If we want a new BMW all we need to do is a bit of MEW which is so much easier than making them.

Silly Germans ;)

I mean who would want to have industrial companies like BMW, VAG, Porsche, Mercedes... when you could have an economy based on buying and selling houses?

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German policy since 1945: Build high-quality housing. Result: lots of stock of good flats and houses to meet demand.

UK policy since 1945: Build "low-cost" housing, permanently in crisis, permanently applying sticking-plaster non-solutions to the problem of people seen to be unable to afford to house themselves. Result: lots of houses noone wants, and huge pressure on anything half-decent.

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For thirty years we have invested in property and the Germans have invested in industrial production and look where it has got them. Our piles of bricks are worth trillions and all they have are some rented flats and a few (so last century) factories. If we want a new BMW all we need to do is a bit of MEW which is so much easier than making them.

Brilliant! Megalol.

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Maybe their economy wouldn't be so good if they had been made to pay back all their war debt.

But then again debt is only wrong if you owe Germany money in Germanic minds.

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Less people have to spend on debt, the more they can spend elsewhere in the economy....the more therefore businesses will invest in a growing consumer demand.......people with high debt do not take on more debt, do not go out, do not travel, do not eat in resturants do not buy new white good upgrades extra luxturies........high house prices promotes stagnation and falling demand, low growth and productivity.....choices.

Not just debt though is it...

Edited by DungBeetle

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For thirty years we have invested in property and the Germans have invested in industrial production and look where it has got them. Our piles of bricks are worth trillions and all they have are some rented flats and a few (so last century) factories. If we want a new BMW all we need to do is a bit of MEW which is so much easier than making them.

great for industrialists.

Not so good for the poor suckers who work for them who lent their savings to greece, Portugal, Spain, Ireland etc. Merkel just hasnt the cojones to tell them its all gone.

Edited by R K

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great for industrialists.

Not so good for the poor suckers who work for them who lent their savings to greece, Portugal, Spain, Ireland etc. Merkel just hasnt the cojones to tell them its all gone.

You not wrong here... but I would guess the only logical and natural solution to these imbalances if demonstrated to you would be equivalent to showing a cross to the devil.

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Less people have to spend on debt, the more they can spend elsewhere in the economy....the more therefore businesses will invest in a growing consumer demand.......people with high debt do not take on more debt, do not go out, do not travel, do not eat in resturants do not buy new white good upgrades extra luxturies........high house prices promotes stagnation and falling demand, low growth and productivity.....choices.

Nail on the head.

What's more, it's the younger generations who will be burdened with the most debt - therefore good luck pitching your wares to the cash-strapped under 45s - unless you're Apple or an Ibizan holiday sales rep of course.... :rolleyes:

Edited by canbuywontbuy

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I really don't know why I don't just emigrate to Germany. I love their language, their culture, heck their weather is better than ours. And look what £200k buys you: http://www.rightmove.co.uk/overseas-property/property-49569268.html

(Thats with the presumed ex-pat markup, I'm sure you can get similar ones for way less)

Edited by spunko2010

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