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Mr Blek

Pyramid Scam Alert

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OK, thisismoney has an article on RightMove's bullish statement that the average asking price is now over 200k.

One thing I remember from studying Chomsky is that the truth in an article can always be found towards the bottom.

From the above article:

The rising prices will not be welcomed by those struggling to get on the property ladder. Last week official figures revealed record numbers of first-time buyers have been forced to ask their family for financial help.

Anyone who knows the workings of a pyramid scam will recognise this. In the scam, if the person can't afford the joining fee, they are encouraged to borrow off credit, then friends and family. They are also told to involve their friends and family at the first opportunity so that 'they don't miss out'. The real reason is so that the pyramid doesn't run out of steam.

The same is happening with the housing market. Its running out of steam. It needs buyers to prop it up, and if that means getting money off family and friends, so be it. Imagine the consequences when it goes tits up.

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OK, thisismoney has an article on RightMove's bullish statement that the average asking price is now over 200k.

One thing I remember from studying Chomsky is that the truth in an article can always be found towards the bottom.

From the above article:

Anyone who knows the workings of a pyramid scam will recognise this. In the scam, if the person can't afford the joining fee, they are encouraged to borrow off credit, then friends and family. They are also told to involve their friends and family at the first opportunity so that 'they don't miss out'. The real reason is so that the pyramid doesn't run out of steam.

The same is happening with the housing market. Its running out of steam. It needs buyers to prop it up, and if that means getting money off family and friends, so be it. Imagine the consequences when it goes tits up.

The other characteristic of a collapsing pyramid is that it tends to have very nasty fall out for social relationships, particularly family relationships.

Your elderly mum might love to give you 2 grand so that "Women can empower Women" or 50 grand so that "Banks can empower first time buyers", but she ain't gonna be happy when her only home is hocked up to a loosing bet on another one, particularly if the job goes down the tube or somebody gets pregnant. It takes the shine off the what should be the good things in life.

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The other characteristic of a collapsing pyramid is that it tends to have very nasty fall out for social relationships, particularly family relationships.

Your elderly mum might love to give you 2 grand so that "Women can empower Women" or 50 grand so that "Banks can empower first time buyers", but she ain't gonna be happy when her only home is hocked up to a loosing bet on another one, particularly if the job goes down the tube or somebody gets pregnant. It takes the shine off the what should be the good things in life.

There's a few posts on this site by The Masked Tulip that describe what happened during the last crash. With the amount of good times people have had recently, the social consequences are going be hard to swallow.

As I always say to my friend who is MEW'd to the hilt, the important things in life are your "family and your health". His response is "got all that and a nice fortune from the housing market". Question is, will he still have all that when the market crashes? I seriously doubt it.

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Goebbels would be so proud! What a fine piece of spin.

comical_ali.jpg

"The average asking price has leapt by more than £5,000 this month to £201,600 -the largest monthly rise for nearly two years"

"The figures suggest the property market is booming again as once-cautious buyers dismiss gloomy predictions of a crash."

"Analysts yesterday hailed the rise above the symbolic £200,000 mark as proof that the property market is the 'bubble that never burst'."

"City high-flyers have helped breathe life into the top end of the market thanks to bonuses at the turn of the year. It is estimated that up to £3m of these payouts will be spent on property in the UK and overseas."

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"At the lower end, increasing numbers of first-time buyers are joining the market"

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"Prices have surged as the number of properties on the market has fallen - leading to a fierce bidding war among desperate buyers"

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Miles Shipside said: 'The market has picked up quickly this year. House prices have stormed through the £200,000 barrier to record levels several months earlier than the market anticipated.

'Buyers are back, particularly at the lower end of the market as first-time buyers are finding it can actually be cheaper to pay a mortgage than to pay rent. However, sellers must not get too ambitious or the recovery could run out of steam as affordability is over-stretched again.'

--

Just look at what has been let loose now the Land Registry is reporting actual falls, in double-digits in some areas and for entire classes of property in Q4 alone. This is propaganda like we've never seen it before, all from a report based on the mean average of selected asking prices.

Rightmove's IPO is gathering pace!

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Edited by BuyingBear

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One thing I remember from studying Chomsky is that the truth in an article can always be found towards the bottom.

Which articles by Chomsky describe his views on the media? I tried watching "Manufacturing Consent" on television but was tired by a long day at work and kept falling asleep. Certainly I didn't see the reasoned detailed argument I was expecting.

Billy Shears

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Guest Bart of Darkness
There's a few posts on this site by The Masked Tulip that describe what happened during the last crash. With the amount of good times people have had recently, the social consequences are going be hard to swallow.

This is true. Without wanting to seem like a cantankerous old 'un, a whole generation has grown up never knowing anything but prosperity and comfort. I do often wonder how they would react to a major recession since they would not be able to draw on past experience of such events.

I think they will cope, but the transition won't be pretty (certainly not for whoever is in No. 10).

As someone who grew up in the 1970s, I saw massive inflation, strikes, powercuts and rising unemployment regularly covered on the news. So when I left school in 1984, I knew why jobs would be scarce and could accept it. I expected less out of life at that time I guess.

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The people who faced unemployment in the 1970s and 1980s - it was not uncommon for people to be out of work for more than 5 years in the 1980s with, in many parts of the UK, unemployment amongst adult males being at 80% - did not have the enormous debts that Society has today. It was all very well Norman Tebbitt telling people to get on their bikes but few had 'bikes' and there were simply no jobs to be had in large parts of the UK. Despair is a terrible thing - it breaks up families, it drives people to suicide. We had a lot of despair in the '70s and '80s.

Being unemployed when you own next to nothing but also owe very little, certainly by today's standards, is completely different to being mortgaged to the hilt and maxed out on credit debt. It used to be so darn hard to get any kind of credit - I grew up in a middle class area where the chap who lived across the road was a money-lender believe it or not and he did very nicely indeed!

Nor, it must be said, did we have a "Me, me!" culture whereby people put themselves and their material greed first before Home & Family. The all important social structure of The Family that supported a great many people during times of unemployment simply does not exist today.

And, at the risk of turning this into another woman bashing thread, I think that a significant number of women in their 20s to late 40s - although by no means certainly not all - are far too selfish, materialistic and, it must be said, 'fleeting' in their commitments to the Men in their lives, to their relationships, to marriage and to their families. I expect the male suicide rate to leap at an appalling level in the next 5 years once this bust gets fully underway. Experience, often painful experience, will soon tell Men, now in their 20s and 30s, that it is better to find the woman you wish to marry when you have only two beans to rub together and not when you have an illusion of wealth created upon the back of enormous debt.

People are going to be hurt, scarred and damaged by this bubble in ways that many do not yet realise and which, at best, many think will only happen to someone else. The already damaged fabric of our Society will be torn again and I think we will have several generations of Men and Women who, genderwise, will become polarised, angry, bitter and resentful of one another.

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Which articles by Chomsky describe his views on the media? I tried watching "Manufacturing Consent" on television but was tired by a long day at work and kept falling asleep. Certainly I didn't see the reasoned detailed argument I was expecting.

Billy Shears

There's a summary of the propaganda model of the media on wikipedia:

http://en.wikipedia.org/wiki/Propaganda_model

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Which articles by Chomsky describe his views on the media? I tried watching "Manufacturing Consent" on television but was tired by a long day at work and kept falling asleep. Certainly I didn't see the reasoned detailed argument I was expecting.

Billy Shears

Should try reading the book. Its much better (books rarely ever translate well into film!)

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To follow on from TMT's post, I was a trainee accountant in the early-mid 90's in an area I understand was not as hard hit as many. I came across a number of professional men in their early 50's who were temping for a few weeks doing year end work having not worked for the previous year, and with no real expectation of their contracts continuing. By todays standards I guess they were fortunate - small if any mortgages and no debt.

Since the end of the recession I've been surprised how many high flying colleagues spent periods of 6 months to a year on the dole in what should have been their most employable years. How did people forget so quickly?

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  • 301 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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