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The Press Seems To Call Stockmarket Tops And Bubbles Easily


Scooter
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As the FTSE hits a new high, many papers are saying a crash is coming soon. They may be correct or not. However a housing bust after years of above inflation growth (way above!) seems at least as likely so why are the press so timid about predicting a housing bust?

S.

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As the FTSE hits a new high, many papers are saying a crash is coming soon. They may be correct or not. However a housing bust after years of above inflation growth (way above!) seems at least as likely so why are the press so timid about predicting a housing bust?

S.

Because houses are not like stocks.

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Guest The_Oldie
As the FTSE hits a new high, many papers are saying a crash is coming soon. They may be correct or not. However a housing bust after years of above inflation growth (way above!) seems at least as likely so why are the press so timid about predicting a housing bust?

S.

Could it be something to do with the amount of property owned by journalists? BTL being the preferred investment at the moment :rolleyes:

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Guest muttley
As the FTSE hits a new high, many papers are saying a crash is coming soon. They may be correct or not. However a housing bust after years of above inflation growth (way above!) seems at least as likely so why are the press so timid about predicting a housing bust?

S.

Newspapers have succesfully predicted 15 of the last 4 stock market crashes.

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Newspapers have succesfully predicted 15 of the last 4 stock market crashes.

I know what you mean but I was not addressing whether they get it right or not, I was just questioning why it is ok to say the stockmarket is about to crash after a reasonble 4 year run on historically ok valuations but when it comes to houses, nothing will make it crash in the view of most newspapers and most will only concede a slowdown.

S.

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My take is that newspapers like to print what the majority of people want to read. They are businesses after all. A large percentage of the UK population has directly "invested" in property whereas a much smaller percentage have done so through the stock market, pensions aside (how many people do you know who have a stockbroking account versus how many who have bought a home). Thus there is somewhat of an attitude of the housing market is "too big to fail". However, as any student of financial history can tell you, whatever the public has considered as being too big to fail, always has failed, no exceptions

Best,

L

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As the FTSE hits a new high, many papers are saying a crash is coming soon. They may be correct or not. However a housing bust after years of above inflation growth (way above!) seems at least as likely so why are the press so timid about predicting a housing bust?

S.

The press wont call for a housing bust just yet.

They still want to build up Brown, big him up as the Iron Chancellor, "the longest and most successful Chancellor in recent memory".

He then succeeds Blair as PM, then the press suddenly turn on Brown and destroy him. Build him up, then knock him down.

The press will call a housing bust as soon as Brown becomes PM.

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Guest mattsta1964
The press wont call for a housing bust just yet.

They still want to build up Brown, big him up as the Iron Chancellor, "the longest and most successful Chancellor in recent memory".

He then succeeds Blair as PM, then the press suddenly turn on Brown and destroy him. Build him up, then knock him down.

The press will call a housing bust as soon as Brown becomes PM.

No doubt about it. Brown will be the fall guy. The knives will be out in the media as soon as Bliar is gone

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The press wont call for a housing bust just yet.

They still want to build up Brown, big him up as the Iron Chancellor, "the longest and most successful Chancellor in recent memory".

He then succeeds Blair as PM, then the press suddenly turn on Brown and destroy him. Build him up, then knock him down.

The press will call a housing bust as soon as Brown becomes PM.

Sounds about right. Also the impending disaster is probably the reason why Brown wants to be PM sooner rather than later.

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A real houseprice crash will coincide with a stockmarket crash. IMO the market is driven by london, and has a ripple affect acros the rest of the UK (apart from deliberate regeneration attempts - liverpool).

WHo is it buying these £4-10m homes? Its foreigners and city bankers. If you got a 800k bonus this year, go buy yourself a nice £3m house with a mortgage, then the year you dont get your bonus, you are down to your basic salary of 100k. So you sell. And generally bankers will all get bonuses or they all wont. There is deviation between departments, but if the FTSE falls 15% the chances are they all wont. So they all sell as soon as the find out theres not gonna be a bonus.

Then no one else can afford these homes and no one wants to jump into a falling market

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Chance of expanding on that? Houses are assets with a value which people buy and sell in a market that broadly rises and falls in line subject specific details eg size, condition, location (as shares/companies).

S.

People don't live in shares. People who don't own shares do not have to rent them from those that own more than they need.

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