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pyewackitt

The Times: Hpi Is A Godo Thing?!?!

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Just been reading today's Times newspaper and I don't think I've been this angry with a Journo ever.

http://business.timesonline.co.uk/article/...2048619,00.html

Anatole Kaletsky is obviously completely and utterly mad!

The figures show that, far from accelerating or rebounding, the eurozone economy is getting even weaker and this downtrend is almost certain to continue in 2006.

...

There is, admittedly, another possible source of growth for Europe. This is consumer spending, but fuelled by a British- (or American-) style house-price and mortgage-lending boom. In several European countries a combination of low interest rates and financial deregulation has already set off a self-reinforcing interaction of rising house prices, lending growth, booming consumption, improving employment opportunities and still higher house prices. This kind of virtuous circle has been powering the Spanish economy since the start of the decade...

...

My suspicion, however, has long been that European policymakers would see a house price and mortgage spiral not as a solution to sub-par growth but as a new economic problem, and that the ECB would try to stamp out a bull market in property. This suspicion was officially confirmed last week.

...

In other words, the ECB sees the property and mortgage boom as a problem, not a solution — and will presumably try to stop this house price “inflation”. If it does, the chances of an economic recovery in Europe this year will fall from negligible to nil.

The audacity of this man to write in a national newspaper that essentially the US and UK have paved the way for Europe to over-extend itself by allowing HPI and silly lending to fuel consumption is the most irresponsible piece of writing I think I have ever seen!

Please read the article and perhaps you too will realise that with people like this anywhere near the mass media we are doomed to the longest recession in history...

- Pye (Property Speculation Ninja :ph34r: )

Edited by pyewackitt

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Just been reading today's Times newspaper and I don't think I've been this angry with a Journo ever.

http://business.timesonline.co.uk/article/...2048619,00.html

Anatole Kaletsky is obviously completely and utterly mad!

The audacity of this man to write in a national newspaper that essentially the US and UK have paved the way for Europe to over-extend itself by allowing HPI and silly lending to fuel consumption is the most irresponsible piece of writing I think I have ever seen!

Please read the article and perhaps you too will realise that with people like this anywhere near the mass media we are doomed to the longest recession in history...

- Pye (Property Speculation Ninja :ph34r: )

The Times is no longer worth reading. I wouldn't even wipe my ar*e with it.

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Kaletski really has lost the plot. Thinks that the solution to Europe's problems is to borrow huge amounts of money to fund a spending boom, and the way to do this? A house price bubble! :angry:

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Kaletski = idiot, that's official then.

Hey! Great idea! Bound to win me the Nobel Prize! Lets simply BORROW our way to financial success! No nned to actually MAKE anything, or PROVIDE services for economic growth, just PRETEND by fuelling a consumer boom with cheap credit!

Don't know why nobody has thought of it before - its so simple...

what a moron. And the editor of the paper is Mr Thickie too - for employing this kaletski retard.

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Are there any economists on the site who can explain:

* What is wrong with low growth? In a mature economy like Germany or the UK, it seems entirely appropriate to me.

* What is so great about a debt-driven consumer economy?

* When all the housing equity has been cashed in by the rich generations and replaced by bank debt, with the interest serviced by the poor (younger) generations, what is the UK? A great big bank?

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Kaletski really has lost the plot. Thinks that the solution to Europe's problems is to borrow huge amounts of money to fund a spending boom, and the way to do this? A house price bubble! :angry:

Okay, so in the red corner of the Eurozone we have places like Spain and Italy, where you can borrow whatever you like, prices have rocketed to crazy levels, and consumers are in record-breaking debt. And in the blue corner you have Germany where there are still proper lending controls, there has been no house price boom, and consumers have record savings.

I think we'll see over the next 2-3 years which country has been in the virtuous circle. Hint, it isn't Italy or Spain.

frugalista

* What is wrong with low growth? In a mature economy like Germany or the UK, it seems entirely appropriate to me.

Low, sustainable growth based on real productivity improvements as opposed to debt is fine unless you are a speculative investor or a bank.

* What is so great about a debt-driven consumer economy?

It's great, if you are a bank.

* When all the housing equity has been cashed in by the rich generations and replaced by bank debt, with the interest serviced by the poor (younger) generations, what is the UK? A great big bank?

No, just a rainy, miserable little island owned and run by banks.

frugalista

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The Times is no longer worth reading. I wouldn't even wipe my ar*e with it.

The Times is the daily rag for the new labour middle class likewise The Scum

is the daily rag for the new labour working class. Would not wipe my ****

with Sky or any other Rupert Murdoch propoganda media channels.

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Thanks Frugalista.

I suspected that Germany can afford to be a little proud of itself, as it still has some industry and any growth that does occur seems to be export-led.

Has to be a better bet than an economy based on selling houses to each other and spending the equity until there is no equity left to spend, only debt to service (how? with what?).

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Thanks Frugalista.

I suspected that Germany can afford to be a little proud of itself, as it still has some industry and any growth that does occur seems to be export-led.

Has to be a better bet than an economy based on selling houses to each other and spending the equity until there is no equity left to spend, only debt to service (how? with what?).

Germany is like the class swot who is taking a ribbing from the idiots throwing balls of paper at each other, smoking behind the bikesheds and getting their 14 year old girlfriend pregnant.

They won't realise that the swot was laying foundations for a secure future whilst they have ruined theirs, until it is too late. :o

p.s. the idiots have also been smoking too much of the cheap crack distributed at the school gates by their "friendly" drug dealer, Mr Haliwide.

Edited by Smell the Fear

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Germany is like the class swot who is taking a ribbing from the idiots throwing balls of paper at each other, smoking behind the bikesheds and getting their 14 year old girlfriend pregnant.

They won't realise that the swot was laying foundations for a secure future whilst they have ruined theirs, until it is too late. :o

p.s. the idiots have also been smoking too much of the cheap crack distributed at the school gates by their "friendly" drug dealer, Mr Haliwide.

:lol::lol::lol:

A quick visit to Friends Re-united is enough to prove that the geekier & more picked on the ex-classmate, the richer they are now.

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Okay, so in the red corner of the Eurozone we have places like Spain and Italy, where you can borrow whatever you like, prices have rocketed to crazy levels, and consumers are in record-breaking debt. And in the blue corner you have Germany where there are still proper lending controls, there has been no house price boom, and consumers have record savings.

I think we'll see over the next 2-3 years which country has been in the virtuous circle. Hint, it isn't Italy or Spain.

frugalista

Low, sustainable growth based on real productivity improvements as opposed to debt is fine unless you are a speculative investor or a bank.

It's great, if you are a bank.

No, just a rainy, miserable little island owned and run by banks.

frugalista

I spent a whole semester crying because I couldn't get my head around Umberto Eco's theory of hyper-reality. If only I'd known. Just come to England! Growth? That marvelous word that says so much and nothing at all.

"Growth" that prevents people from growing families

"Growth" that stymies every form of intellectual pursuit

"Growth" that stunts the people that generate it in everyway possible.

Its a metaphorical allusion to flourishing life, a map accross the landscape of human existence that in reality points to nothing but an increase in electronic impulses and stored electrons.

Eco, I understand you now mate! ... Sorry guys... just had to get philosophical there :ph34r:

Edited by Elizabeth

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"In this world nothing can be said to be certain, except death and taxes." Benjamin Franklin

For some, death will be a huge relief.

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Hey! Great idea! Bound to win me the Nobel Prize! Lets simply BORROW our way to financial success! No nned to actually MAKE anything, or PROVIDE services for economic growth, just PRETEND by fuelling a consumer boom with cheap credit!

I believe the Austrian economist Ludwig von Mises once said: “It may sometimes be expedient for a man to heat the stove with his furniture. But he should not delude himself by believing that he has discovered a wonderful new method of heating his premises.”

frugalista

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  • 338 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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