U K Plc Estimated To Be Worth 6.1 Trillion

[Realistbear]

http://business.guardian.co.uk/story/0,,1827963,00.html

Housing helps raise wealth of nation above £6 trillion

Angela Balakrishnan

Tuesday July 25, 2006

The Guardian

In 1987, when Margaret Thatcher won her third term and Rick Astley was at No1 in the singles charts with Never Gonna Give You Up, the UK was worth a mere £1.7 trillion. Now, for the first time, following an astonishing period of growth, the figure has broken the £6 trillion mark......../

Much of this was influenced by the volatile housing sector, which tends to hold much of the country's wealth. A record number of repossessions in the early 1990s, when more than 1 million people lost their homes, helped reduce the wealth held in housing, which hit a low of 42% of the total in 1994.

In 2005, housing represented 59.5% of the UK's total wealth

, up 1.3% on the year and significantly above the peak of 53% hit in 1987. Though house prices have soared from an average of £43,164 in 1987 to £165,035 in the second quarter of 2006, the

increase in prices over last year were moderate,

growing by only 4.3%, the smallest rise

since 1995, when they fell by 0.5%.

The slowdown in house price rises dampened the growth of the UK's wealth, which rose by 2% last year over 2004, the smallest rise in more than a decade. The country's value increased by 8.4% both in 2003 and 2004 and 13.8% in 2002, during which house prices surged by more than 25%.

IF the vast bulk of our "wealth" is dependent upon the opinion as to the value of overpriced houses we are still a poor country. The Miracle Economy is therefore illusory as it is opinion whereas the debt it has created is real. As Merv said.

[dnd]

I 'feel' richer already

I'm just off down the bank to explain to them how rich I feel and how I'd like to take out a massive unsecured loan...

[pondlife]

n 2005, housing represented 59.5% of the UK's total wealth[/b], up 1.3% on the year and significantly above the peak of 53% hit in 1987. Though house prices have soared from an average of £43,164 in 1987 to £165,035 in the second quarter of 2006, the increase in prices over last year were moderate, growing by only 4.3%, the smallest rise since 1995, when they fell by 0.5%.

The slowdown in house price rises dampened the growth of the UK's wealth, which rose by 2% last year over 2004

So a little Maths here - 60% of our wealth increased last year by 4.3%. However overall we only grew at 2%. Therefore other wealth must have fallen by:

(2 - 0.6 x 4.3) / 0.4 = -1.45%

So Non Housing Wealth fell by 1.45% Year on Year - Possibly Explained by wages sent back to the family in Poland.

Edited July 25, 2006 by pondlife

[Guest mattsta1964]

http://business.guardian.co.uk/story/0,,1827963,00.html

Housing helps raise wealth of nation above £6 trillion

Angela Balakrishnan

Tuesday July 25, 2006

The Guardian

In 1987, when Margaret Thatcher won her third term and Rick Astley was at No1 in the singles charts with Never Gonna Give You Up, the UK was worth a mere £1.7 trillion. Now, for the first time, following an astonishing period of growth, the figure has broken the £6 trillion mark......../

Much of this was influenced by the volatile housing sector, which tends to hold much of the country's wealth. A record number of repossessions in the early 1990s, when more than 1 million people lost their homes, helped reduce the wealth held in housing, which hit a low of 42% of the total in 1994.

In 2005, housing represented 59.5% of the UK's total wealth

, up 1.3% on the year and significantly above the peak of 53% hit in 1987. Though house prices have soared from an average of £43,164 in 1987 to £165,035 in the second quarter of 2006, the

increase in prices over last year were moderate,

growing by only 4.3%, the smallest rise

since 1995, when they fell by 0.5%.

The slowdown in house price rises dampened the growth of the UK's wealth, which rose by 2% last year over 2004, the smallest rise in more than a decade. The country's value increased by 8.4% both in 2003 and 2004 and 13.8% in 2002, during which house prices surged by more than 25%.

IF the vast bulk of our "wealth" is dependent upon the opinion as to the value of overpriced houses we are still a poor country. The Miracle Economy is therefore illusory as it is opinion whereas the debt it has created is real. As Merv said.

To have allowed a whole country's 'wealth' to be so inextricably linked to the value of property is so supremely foolish, it beggars belief.

Goodbye UK PLC, Hello 3rd world status

We are on the edge of bankruptcy

[Realistbear]

To have allowed a whole country's 'wealth' to be so inextricably linked to the value of property is so supremely foolish, it beggars belief.

Goodbye UK PLC, Hello 3rd world status

We are on the edge of bankruptcy

It is easy to see why Gordon CANNOT raise IR. Our housing market is on the edge of an abyss and a gentle nudge is all it will take. Just look at the devastation that has come to HPI in the States--its just awful, simply terrible, a human tragedy beyond description.

[Guest mattsta1964]

It is easy to see why Gordon CANNOT raise IR. Our housing market is on the edge of an abyss and a gentle nudge is all it will take. Just look at the devastation that has come to HPI in the States--its just awful, simply terrible, a human tragedy beyond description.

When you look at what happened in Japan when itseconomy imploded, you realise what a desperate situation we are in if the crash is really serious.

Red Cross, Medecin Frontiers and Oxfam will be pitching tents all over the UK

[Saving For a Space Ship]

When you look at what happened in Japan when itseconomy imploded, you realise what a desperate situation we are in if the crash is really serious.

Red Cross, Medecin Frontiers and Oxfam will be pitching tents all over the UK

Your typo 'itseconomy' gives me an idea of a word to sum the situation up. Something along the lines of

Tsuna(Econo)mi ? Tsunami Economy

[right_freds_dead]

To have allowed a whole country's 'wealth' to be so inextricably linked to the value of property is so supremely foolish, it beggars belief.

if this is how it works then my van, which was 16k i feel is now worth £200k.

in effect according to the way they work this out, im quite well off.

and my laptop must be now worth another 100k.

hell, i could be retired by the end of the day with all this wealth.

[Guest mattsta1964]

Your typo 'itseconomy' gives me an idea of a word to sum the situation up. Something along the lines of

Tsuna(Econo)mi ? Tsunami Economy

The-CON-'EM-y is better

[Saving For a Space Ship]

The-CON-'EM-y is better

You're probably right, but the conjoured image of thousands of muppet indebted sheeple being swamped is quite appealing.

Don't get me started on the baby boomers 'Tea and Scone army'.........

Edited July 25, 2006 by Saving For a Space Ship