The Masked Tulip Posted May 12, 2006 Share Posted May 12, 2006 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 Quote Link to comment Share on other sites More sharing options...
smiley Posted May 12, 2006 Share Posted May 12, 2006 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). Quote Link to comment Share on other sites More sharing options...
abroad Posted May 12, 2006 Share Posted May 12, 2006 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 Quote Link to comment Share on other sites More sharing options...
Bingley Bloke Posted May 12, 2006 Share Posted May 12, 2006 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. Quote Link to comment Share on other sites More sharing options...
Flat Bear Posted May 12, 2006 Share Posted May 12, 2006 (edited) 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 May 12, 2006 by Flat Bear Quote Link to comment Share on other sites More sharing options...
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