Jump to content
House Price Crash Forum
Sign in to follow this  
CrashConnoisseur

Observer: Bust Will Follow Boom, It's The Law.

Recommended Posts

'Bust will follow boom, it's the law':

http://observer.guardian.co.uk/business/st...,841404,00.html

We know what happened to the stock market, and all history suggests that the house price bubble will burst at some stage, causing great pain and a lot of instability.

But when? The market in London for properties valued at more than £1 million has already turned. The Bank says the rate of property price rises is likely to slow down to zero over the next two years but, in King's word, 'the longer the slowdown in house price inflation is deferred, the greater that slowdown is likely to prove'.

The date of this article?

November 17th., 2002.

Share this post


Link to post
Share on other sites
Guest grumpy-old-man

'Bust will follow boom, it's the law':

http://observer.guardian.co.uk/business/st...,841404,00.html

The date of this article?

November 17th., 2002.

perhaps every time the property market should crash by raising the rates, this time they will just keep lowering them & then in about 2050 the UK will just cease working & implode.........everyone will leave & it will be bought by America for £1 to house their prisoners of war.

Share this post


Link to post
Share on other sites

'the longer the slowdown in house price inflation is deferred, the greater that slowdown is likely to prove'.

I wish he would have the balls to say that prices will fall. He knows it and we all know it. A slowdown in inflation is still rising prices. If a deferred correction will be worse why not spit it out and get the thing happening?

Share this post


Link to post
Share on other sites

I wish he would have the balls to say that prices will fall. He knows it and we all know it. A slowdown in inflation is still rising prices. If a deferred correction will be worse why not spit it out and get the thing happening?

A while ago he made the point that the best way for the BoE to lose credibility would be to lecture the public on house prices.

His job is not to control asset prices, he's warned people on a few occasions, but if they would rather listen to Kirstie and Phil then they have only themselves to blame.

You can't protect people from their own stupidity.

Edited by BandWagon

Share this post


Link to post
Share on other sites
Finally, one should never ignore a warning from Professor Wynne Godley, who has been pointing out that the consumer boom has been sustained not so much by a rise in debt as by 'the rise in the rise in debt'. King himself cites the old adage that 'something which is unsustainable can't go on for ever'.

4 years and around £1/2 trillion more debt later and we're still at it! I honestly cannot imagine what awaits us when the "Great Borrowing" comes to an end and we have to deal with the consequences. Millions of bankrupt households and all the desperate social fallout that goes with it.

I remember being warned by a few old heads in 1992 that, no matter how bad the Tories seemed, their economic incompetence was nothing when compared to Labour's. Now I see what they meant.

Share this post


Link to post
Share on other sites

4 years and around £1/2 trillion more debt later and we're still at it! I honestly cannot imagine what awaits us when the "Great Borrowing" comes to an end and we have to deal with the consequences. Millions of bankrupt households and all the desperate social fallout that goes with it.

I remember being warned by a few old heads in 1992 that, no matter how bad the Tories seemed, their economic incompetence was nothing when compared to Labour's. Now I see what they meant.

It looks like were just going to scrape along the bottom of the barrel for years and years...... economy will just limp on and on - but slow stagnation....

Share this post


Link to post
Share on other sites

It looks like were just going to scrape along the bottom of the barrel for years and years...... economy will just limp on and on - but slow stagnation....

thats life....

Edited by moosetea

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.