Annecdotal - Steel Industry And House Prices

[Guest]

Met with my wife's old school friend (& her husband and daughter)

1. She works in a steel company ... my understanding is they're some kind of reseller in hampshire and this girl is an account manager. Chatting to her, she works part time there but said she doesn't enjoy it because "its all doom and gloom". Asking her why that was, I suggested the global steel industry recession. She looked at me like I'd suggested unicorns were to blame! She said no people just aren't buying any steel. I said is that because China have stopped buying... another Unicorn moment. She basically had no concept of the global economy. I guess not essential for Account Managers but surprised me ...

2. I asked the state of the construction industry from her perspective and her husband said "loads of construction work according to my mate who is in the trade". I didn't get specifics due to my son about to run into the duck pond, but I'm not convinced.

3. They had their house on the market recently, and were offered £15k below asking price (prob 7% below asking). That would have completed the chain and allowed them to move. But they turned it down because the asking price is the asking price and they don't want to give it away. Why is it people don't understand the "value" of the house is only what it sells for, and only at that point time.

[Roman Roady]

I have been very cynical about the successive governments attempts to placate the masses...since 2008 we have had Brown, Cameron, Clegg, Osbourne et el spinning away...I guess the people are stupid after all.

At least this period of "Bread and Circuses" seems to be ending, but it will be a very big shock for many.

Ignorance is bliss.

How sad.

[StainlessSteelCat]

Ignorance is bliss. I remember warning my more senior colleagues (who were supposed to be tracking these kinds of risks) of what turned out to be the 2008 crash from around 2006.

They, of course, didn't listen - and a few had to cheek to say, "Nobody saw it coming but nothing to fear because house prices are OK" afterwards. Still at least one person piped up and reminded them that I had mentioned it quite regularly as a strong possibility.

For many, house prices and whether they have a job are the only barometers of a strong economy.

Edited November 28, 2015 by StainlessSteelCat

[reddog]

1. She works in a steel company ... my understanding is they're some kind of reseller in hampshire and this girl is an account manager. Chatting to her, she works part time there but said she doesn't enjoy it because "its all doom and gloom". Asking her why that was, I suggested the global steel industry recession. She looked at me like I'd suggested unicorns were to blame! She said no people just aren't buying any steel. I said is that because China have stopped buying... another Unicorn moment. She basically had no concept of the global economy. I guess not essential for Account Managers but surprised

worked in I.T. in quite a few industries and found it mind boggling how badly informed people on the " business side" are about the business they are actually in.

Not sure if it is unique to this country, I have worked with a few Americans that have obviously done lots of background reading on their industry, and are pretty well informed.

[MississippiJohnHurt]

worked in I.T. in quite a few industries and found it mind boggling how badly informed people on the " business side" are about the business they are actually in.

.

I once had to explain the whole 'demand is what people can pay, not what they want to pay' thing to a partner at a big 4 accountancy firm. Was astonished, probably shouldn't have been given he was telling me about the timeshare he had bought into in Florida.