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wsn03

Robert Peston - is he our champion?

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Did anyone hear him on Radio 4 this morning.

And his book called "WTF" apparently. This morning he made all the right noises, in front of some ex member of the Bank of England - , low interest rates fuelling a housing boom (deliberately he adds), leaving a whole portion of society out, fuelling debt etc etc etc, all the stuff said on here. I'm amazed no one has commented on it, seemed bang on the money.

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2 minutes ago, wsn03 said:

Did anyone hear him on Radio 4 this morning.

And his book called "WTF" apparently. This morning he made all the right noises, in front of some ex member of the Bank of England - , low interest rates fuelling a housing boom (deliberately he adds), leaving a whole portion of society out, fuelling debt etc etc etc, all the stuff said on here. I'm amazed no one has commented on it, seemed bang on the money.

Yep - heard it. Definitely pricked up the old ears to that. Didn't hear everything totally clearly but did he say that he felt Northern house prices should rise (i.e. they have been left out of any "successes" enjoyed by other areas)? Heart sank a little at that - if I heard correctly, although he was really good in general.

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2 hours ago, wsn03 said:

Did anyone hear him on Radio 4 this morning.

 

Yup. I heard it.

Didn't expect to hear sentiment like that on Radio 4 let alone anywhere else on U.K. MSM.

Of course it's de riguer on 'The Keiser Report' and Peston, somehow managed to sound more manic than Max which wouldn't have helped his case.

Maybe that is the new ploy from the PTB. Get people to say what is actually going on but ensure that no-one believes tham by making them sound as dribbling swivel-eyed luntaic as possible.

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I tried to be objective. I tried to pretend I was one of the uninformed and brainwashed public, possibly with a vested interest.

 He won the argument for me, because he basically spelt out the disquiet in the world, but gave it a credible root cause.

A lot of people are far too thick to realise that house prices went nuts because of cheap money, most actually believe it is supply and demand. Incredible but true.

Edited by wsn03

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Just now, wsn03 said:

A lot of people are far too thick to realise that house prices went nuts because of cheap money, most actually believe it is supply and demand. Incredible but true.

Cheap, dirty or even free money from home and abroad, whilst not to be welcomed, would not cause our present housing crisis if there was adequate supply.

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1 minute ago, J1mb0 said:

Cheap, dirty or even free money from home and abroad, whilst not to be welcomed, would not cause our present housing crisis if there was adequate supply.

I beg to differ. It did in S Ireland, Spain and the USA. S Ireland had so many houses they had to start pulling some of them down after the crash.

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Just now, wsn03 said:

I beg to differ. It did in S Ireland, Spain and the USA. S Ireland had so many houses they had to start pulling some of them down after the crash.

The problem in the US, like the U.K., is geographical. Too many empty houses in Detroit and not enough houses in San Francisco. I don't recall houses being pulled down outside the U.S. in normal circumstances. Maybe one or two banks demolished some unfinished and unsellable  developments in Ireland and Spain.

The problem is still a market supply failure.

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1 hour ago, wsn03 said:

I beg to differ. It did in S Ireland, Spain and the USA. S Ireland had so many houses they had to start pulling some of them down after the crash.

"had to"? They didn't "have to". But they did nevertheless, to artificially affect prices.

 

 

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1 hour ago, J1mb0 said:

Cheap, dirty or even free money from home and abroad, whilst not to be welcomed, would not cause our present housing crisis if there was adequate supply.

Absolutely right - without scarcity and competitive bidding there is no mechanism for inflation - surprising how many people don't seen to see this.  You need scarcity AND loose credit to create the grotesquely inflated prices we see today.

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1 hour ago, J1mb0 said:

The problem in the US, like the U.K., is geographical. Too many empty houses in Detroit and not enough houses in San Francisco. I don't recall houses being pulled down outside the U.S. in normal circumstances. Maybe one or two banks demolished some unfinished and unsellable  developments in Ireland and Spain.

The problem is still a market supply failure.

Prescotts Pathfinder scheme. Prices to low in the north compulsery purchase order to knock them alll down and call in Taylor wimpy 

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2 hours ago, J1mb0 said:

Yup. I heard it.

Didn't expect to hear sentiment like that on Radio 4 let alone anywhere else on U.K. MSM.

Of course it's de riguer on 'The Keiser Report' and Peston, somehow managed to sound more manic than Max which wouldn't have helped his case.

Maybe that is the new ploy from the PTB. Get people to say what is actually going on but ensure that no-one believes tham by making them sound as dribbling swivel-eyed lunatic as possible.

Is Apollo a member of the LBGT community now?

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3 hours ago, J1mb0 said:

Yup. I heard it.

Didn't expect to hear sentiment like that on Radio 4 let alone anywhere else on U.K. MSM.

Of course it's de riguer on 'The Keiser Report' and Peston, somehow managed to sound more manic than Max which wouldn't have helped his case.

Maybe that is the new ploy from the PTB. Get people to say what is actually going on but ensure that no-one believes tham by making them sound as dribbling swivel-eyed luntaic as possible.

thats always been the ploy, the truth is all out there in plain sight the problem is we are all conditioned from an early age to only look in certain places for it ;)

 

most people in my experience prefer a comforting answer to the uncomfortable truth, so they get lied to

 

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3 hours ago, J1mb0 said:

Cheap, dirty or even free money from home and abroad, whilst not to be welcomed, would not cause our present housing crisis if there was adequate supply.

fifteen post noob "supply and demand innit bruv"

:lol::lol:

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22 minutes ago, thewig said:

fifteen post noob "supply and demand innit bruv"

:lol::lol:

Well it is...  

Supply is restricted because cheap money means people are holding onto houses they should have given up on years ago. 

Demand is increased because people are being lent sums of money they shouldn't really be able to afford. 

Once people realise that the underlying value isn't there, no amount of cheap credit will stop the reverse in sentiment...  Hopefuly... 

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49 minutes ago, bobbo said:

Well it is...  

Supply is restricted because cheap money means people are holding onto houses they should have given up on years ago. 

Demand is increased because people are being lent sums of money they shouldn't really be able to afford. 

Once people realise that the underlying value isn't there, no amount of cheap credit will stop the reverse in sentiment...  Hopefuly... 

oversupply of cheap credit for sure - no shortage of houses though, and certainly no shortage of land itself, just a shortage of land which you can build on without threat of state violence

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23 minutes ago, Tenant4Life? said:

Which program was he on?

Today, R4 7 - 9. His weird manical voice woke me up! Don't ask me when it was though - I soon dropped off again when they stared with the endless groping analysis.

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7 hours ago, J1mb0 said:

The problem in the US, like the U.K., is geographical. Too many empty houses in Detroit and not enough houses in San Francisco. I don't recall houses being pulled down outside the U.S. in normal circumstances. Maybe one or two banks demolished some unfinished and unsellable  developments in Ireland and Spain.

The problem is still a market supply failure.

2000 was the number quoted of unfinished Ghost Estates left in Ireland after the GFC. Remember the whole country has only about the same population as greater Manchester.

Tell you what, the houses, paths and roads around your shiny new house might have been unfinished, but your mortgage would have been fully up and running. 

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Supply won’t solve our crisis as even ‘affordable’ homes need HTB to sell. Decades of using HPI to create a false veneer of a buoyant economy fuelled by cheap credit have suffocated the real economy and led many to think that we could build our way out of this problem. Raise rates as soon as possible and accept the consequences now. It’ll hurt like hell but is the only solution. I know of lots of houses that are empty and being banked. There is more than enough supply of cheap credit to support that, end the problem, raise rates. 

House prices should reflect local earnings not corrupt leveraged lending.

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16 hours ago, J1mb0 said:

Cheap, dirty or even free money from home and abroad, whilst not to be welcomed, would not cause our present housing crisis if there was adequate supply.

When people don't intend to live in the houses they buy, demand is only constrained by the amount of money floating around to support it.

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17 hours ago, J1mb0 said:

The problem in the US, like the U.K., is geographical. Too many empty houses in Detroit and not enough houses in San Francisco. I don't recall houses being pulled down outside the U.S. in normal circumstances. Maybe one or two banks demolished some unfinished and unsellable  developments in Ireland and Spain.

The problem is still a market supply failure.

While a limited supply matters to a certain extent, the large rise house prices over the past 20 years is almost entirely due to loose lending.

As you can see from the graph, the population has increased at a far slower rate than house prices. Loose lending also enables individuals to buy multiple properties more easily.

UK-House-Prices-1997-2014.png.f82497ce08d0592f6c533736372df031.png

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8 minutes ago, Eddie_George said:

While a limited supply matters to a certain extent, the large rise house prices over the past 20 years is almost entirely due to loose lending.

As you can see from the graph, the population has increased at a far slower rate than house prices. Loose lending also enables individuals to buy multiple properties more easily.

 

Whilst I totally agree with the main point, are the house prices in that graph in real terms?  If they're nominal then inflation is distorting the picture, as number of people and number of houses are not impacted by inflation but house prices are.

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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