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Inoperational Bumblebee

Research finds a hard HPC can be good for economic growth

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To see it on the World Economic Forum - yes that is a result. All the "wisdom" to date has been citing HPI as a really good thing by almost everyone aside from a few eccentrics (who actually know what they're talking about) who have predicted this mess. I hope this becomes the new "expert" opinion.

Edited by wsn03

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13 hours ago, GreenDevil said:

Didnt want to start a new thread, but i found this interesting.

Homes for sale at historic low, they can give any multitude of reasons, but put simply due to overpricing.

http://www.dailymail.co.uk/money/mortgageshome/article-3940022/Homes-sale-fall-40-year-low-Brexit-tax-hikes-landlords.html

Surely, a thinly disguised PR piece for Taylor Wimpey and their (scientifically illiterate) efforts to get stamp duty abolished?

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It's pretty obvious I would have thought that booms and busts are part of the economic cycle and should not be overly interfered with. Price discovery is essential, not least to give the new generation a crack of the whip as was given to their parents.

Any doubts and you only need to compare 1995 with 2011, both three years after the nadir. Major had allowed the housing market to crash and was about to hand a dream economy to Blair of low debt in all sectors and accelerating growth. By contrast in 2011 there was an enormous household debt overhang and the public sector had thrown in the towel regarding borrowing setting us on course for decades of slow growth, Japanese style, and unpayable public sector debt.

Edited by crashmonitor

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51 minutes ago, crashmonitor said:

It's pretty obvious I would have thought that booms and busts are part of the economic cycle and should not be overly interfered with. Price discovery is essential, not least to give the new generation a crack of the whip as was given to their parents.

Any doubts and you only need to compare 1995 with 2011, both three years after the nadir. Major had allowed the housing market to crash and was about to hand a dream economy to Blair of low debt in all sectors and accelerating growth. By contrast in 2011 there was an enormous household debt overhang and the public sector had thrown in the towel regarding borrowing setting us on course for decades of slow growth, Japanese style, and unpayable public sector debt.

But it's a price worth paying to prevent Tarquin going into negative equity.

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I can't see how falling house prices would be detrimental to anyone holding only the one they live in.....they carry on living in it, making use of it and still paying for it....no different to what renters have always done. ;)

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27 minutes ago, winkie said:

I can't see how falling house prices would be detrimental to anyone holding only the one they live in.....they carry on living in it, making use of it and still paying for it....no different to what renters have always done. ;)

Look on the bright side,  for BTL there would be increased yield (only for those who hadn't already bought lol)

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