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The Times Finallly Smells Coffee

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http://business.timesonline.co.uk/article/...2327061,00.html

I'd like to meet the writer... she's a babe apparently. Although she is a renter, so dating her would be more dangerous than going out with a single childless 34 year old. "Can I move in..."

Whilst the article content may well be original, your post's title certainly is not. In this regard you are quite right to seek my forgiveness. I recommend you refer to my earlier article, posted in response to a rash of coffee-smelling titled threads :

Smelling The Coffee : Better Latte Than Never?, or just a chance to mocha the afflicted?

Edited by Sledgehead

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Guest Bart of Darkness
The existence of this mortgage highlights our irrational national attitude towards housing. The market has now spiralled to the point that aspirant homeowners cannot afford to buy. The banks, building societies and politicians find ever more ingenious ways to get us on the ladder. But at some point they will no longer be able to disguise the fact that many people simply can’t afford it.

Although BrainClamp might agree with the following:

The market could collapse, opening the door for a flood of new entrants. But it is equally likely that we face a market fuelled by those who are already members of an increasingly exclusive club of homeowners. Some will be members by virtue of their own hard work. But it’s easy to see a future in which membership of the club is determined at birth. The lucky ones will be helped on to the ladder early by wealthy parents, the unlucky will have to wait to inherit. But the offspring of renters will largely remain renters.

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Whilst the article content may well be original, you post's title certainly is not. In this regard you are quite right to seek my forgiveness. I recommend you refer to my earlier article, posted in response to a rash of coffee-smelling titled threads :

Smelling The Coffee : Better Latte Than Never?, or just a chance to mocha the afflicted?

:P:P:P Sledgehead you crack me up.

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I think on HPC we need to differentiate between home owners and people with IO mortgages.

My parents own their home as they have paid of their mortgage..

This exclusive home owners club seems to refer more to idiots with more debt then they can pay ever.. The one thing they are proving is that they cannot afford a house, not that they own one.

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The market could collapse, opening the door for a flood of new entrants. But it is equally likely that we face a market fuelled by those who are already members of an increasingly exclusive club of homeowners. Some will be members by virtue of their own hard work. But it’s easy to see a future in which membership of the club is determined at birth. The lucky ones will be helped on to the ladder early by wealthy parents, the unlucky will have to wait to inherit. But the offspring of renters will largely remain renters.

I am currently reading "Market Wizards" (J Schwager) at the moment. It is interviews with 20 or so of the best traders and investors the world has ever seen. One particularly pertinent interview is with Jim Rogers (the book was published in 1989), in which Rogers was basically calling time on the Japanese stock market.

Excerpt:

I guarantee that the Japanese stock market is going to have a major collapse - possibly within a year or two... A lot of their stocks are going to go down 80-90%.

...

I don't know if you remembered the Kuwaiti stock market of 1980-81. In that market you could buy stocks with a postdated check. You could buy $10m worth of stocks with a postdated check; you could buy $100m worth of stock that way. It didn't matter. Everybody was doing it. In the end, there was a passport clerk who owned $10bn worth of stocks! All of it on postdated checks.

...

Schwager then writes:

On the NYSE, p/e's run about 15 to 1, while in Tokyo multiples are often four times as high. Nippon Telegraph & Telephone trades at 158 times its earnings. "Japanese authorities have allowed a speculative bubble to grow," warns George Soros, manager of the New York City-based Quantum Fund, "At no time in the past has a bubble of this magnitude been deflated in an orderly manner."

Such worries are groundless, argue analysts in Tokyo. The Japanese attribute the high p/e in part to accounting rules that allow companies to understate earnings to keep their taxes lower. Another factor propping up prices is so-called cross-holding of stock. Because many Japanese companies hold large blocks of other companies' stock, which out of tradition are seldom traded, fewer shares are available for purchase, so their prices rise.

Worth repeating:

"Another factor propping up prices is so-called cross-holding of stock. Because many Japanese compaines hold large blocks of other companies' stock, which out of tradition are seldom traded, fewer shares are available for purchase, so their prices rise."

Ponzi-characteristics abound. Of course, it just meant that when the bubble did eventually pop they all had to take an equally large bite of the s*** pie.

Now then, where does this all fit in to HPC?

<_<

Edited by Van

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Whilst the article content may well be original, your post's title certainly is not. In this regard you are quite right to seek my forgiveness. I recommend you refer to my earlier article, posted in response to a rash of coffee-smelling titled threads :

Smelling The Coffee : Better Latte Than Never?, or just a chance to mocha the afflicted?

heads up everyone. SludgeHead has trademarked all words related to coffee. do NOT under any circumstances use them in your threads

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heads up everyone. SludgeHead has trademarked all words related to coffee. do NOT under any circumstances use them in your threads

Where has he bean? :D

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  • 335 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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