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The Masked Tulip

Wall Street Crash

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I was browsing online and came across a powerpoint presentation that I think a teaher has prepared for UK pupils studying history - it is abotu the Wall Street Crash. Interestingly, viewing the slides so much of what led up to the crash then is strangely familiar to what is happening now.

wallstreet.ppt

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That was really good - especially interesting to see the rates of selling and instability in the days before the crash.

Whether or not it's like houses now - not so sure. Speculation, certainly, but not so sure about the over-supply of other products (except stuff from China).

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Liquidity of stock market , even then, makes a market crash more likey than a house price crash. A house price crash cannot happen as quickly due to length of transaction and there will ALWAYs be demand for housing as its a neccessity to live whereas being a shareholder is not. There is a damping effect if everyoen sits tight

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Excellent work (except his dubious spelling of 'hire purchase')! We could do with one about the UK housing market drawing parallels with the Wall St crash at each stage.

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Liquidity of stock market , even then, makes a market crash more likey than a house price crash. A house price crash cannot happen as quickly due to length of transaction and there will ALWAYs be demand for housing as its a neccessity to live whereas being a shareholder is not. There is a damping effect if everyoen sits tight

Interest rises to 8% and the economy takes a dive. Rents go down dramatically and tenants disappear.

Highly leveraged BTLers and high debter home owners, over a relatively short period are forced to sell up by bankruptcy or face ruin. 100,000s of homes hit the market weekly.

The fact houses take longer to "trade" is a disadvantage not an advantage. In the 1929 crash, people tried to sell their over exposed positions (negative equity in shares) quickly, they will do the same this time and will lower to liquidate quickly. Auctions will be the prefered method of disposal (for speed)

It will take much longer to turn around as well

Edited by Flat Bear

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  • 302 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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