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Probably One Of The Best Articles On Present House "prices" Written This Year


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HOLA441

Probably one of the best articles on present house "prices" written this year:

[Webamaster: Can this PLEASE be PINNED!?!?!?]

Alice Miles in The Times: "Scandal of luring first-time buyers".

Gordon Brown is acting immorally by asking for rate cuts that could lead to negative equity.

House prices in Britain, at six times average earnings, are too high. That's it. We all know that, we've known it for years. Property prices are nonsensical, exorbitant, unaffordable, immorally inflated by investors and a shortage of available land space to build new homes, exploited by a greedy City.

All those buying a property have known this for the past five years at least, and it has then become in their interest to hope that the boom continues. To that extent, property owners have been complicit in the financial recklessness of the past few years: easy credit built on pyramid selling. Buying houses has been a gamble, a cross-your-fingers-and- hope-for-the-best, those-mortgages- are-pretty-generous bet that many of us have indulged in.

......../

Nothing could be more immoral, then, in the current climate, than using government efforts and taxpayers' money to encourage first-time buyers to enter the housing market in order to stabilise the dodgy situation that banks and incautious borrowers have got themselves into through overlending and overstretching themselves: row, row harder, keep us all afloat!

How dare a man who has lectured us all ad nauseam about prudence, year after year after year, now use our money to bail out the profligate?

Whole article here -- http://www.timesonline.co.uk/tol/comment/c...?Submitted=true

READ ALL THE COMMENTS/LETTERS AFTER THE ARTICLE: 143 SO FAR: MAJORITY AGREE WITH THE ARTICLE.

BRILLIANT -- and BANG ON THE NAIL......

Edited by eric pebble
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HOLA445
Dude, are you suffering from early-onset or someit'?

You posted that article last week : http://www.housepricecrash.co.uk/forum/ind...83&hl=alice

If you wanna bump it, bump it!

I know. I know --- but this needs to be read and read read by all -- ESPECIALLY wannabee FTBs -- They MUST see this.....

Of course -- as I have said before -- this graph really tells you EVERYTHING you need to know.........

AND - as D'oh so RIGHTLY said -- the trend line on this graph has been skewed by the recent bubble. If we included the di[p that will come, one would see a lower trend line.

homepage.png

Edited by eric pebble
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Why real-estate shock resulted in GBP currency loosing 17% of its previous value against Euro?? There is no reason because real estate is only a few % of UK GBP... Can UK BoE sacrifice its currency for greedy brokers and City golden boys ?

Michel Jutharat, Marseille, France

Indeed, somebody who paid 250 k for a house is not going to sell it willingly for 180k. But the old lady next door who bought it in 1971 for 15k might, so might the couple next to her who paid 90k in 1996 in order to up-size.

Geddit?

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HOLA4413

Mmmm......... things are getting interesting........ more and more articles..........

Can the Bank's £50bn save the economy?

By Hamish Mcrae, Business journalist of the year

Tuesday, 22 April 2008

This is the biggest line of credit the Treasury and Bank of England have ever given to the British banking system. It is more extensive than the help being given to banks by the monetary authorities in the United States and Europe. It is happening because the supply of mortgages is drying up, threatening a collapse in house prices. And it may not be enough. To see what is happening, and why, you have to appreciate that the banks do not have enough funds of their own to meet the demand for mortgages.

In very round numbers, the country needs about £100bn a year to meet mortgage demand – last year it was £108bn. But the banks can only meet about half of that from their own funds; last year they lent less than £40bn directly. They used to be able to cover the gap by selling on mortgages to other lenders, some of which are abroad, some of which are specialist lenders set up for the purpose.

Read the rest here: -

http://www.independent.co.uk/news/business...omy-813316.html

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[Crashman]

Indeed, somebody who paid 250 k for a house is not going to sell it willingly for 180k. But the old lady next door who bought it in 1971 for 15k might, so might the couple next to her who paid 90k in 1996 in order to up-size.

Geddit?

---------------

Very good point Crashman -- something that is often totally missed......

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Watch the house of cards come tumbling down...

http://www.marketoracle.co.uk/Article4419.html

Yup BG -- Marketoracle is a very good site -- it spelt out what was going to happen re: the "credit crunch" MANY months before it happened....... they saw ALL this coming -- and they know how BAD things REALLY are right now and for the next few years at least.....

I recommend anyone to visit that site --- http://www.marketoracle.co.uk/

Edited by eric pebble
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Yup BG -- Marketoracle is a very good site -- it spelt out what was going to happen re: the "credit crunch" MANY months before it happened....... they saw ALL this coming -- and they know how BAD things REALLY are right now and for the next few years at least.....

I recommend anyone to visit that site --- http://www.marketoracle.co.uk/

BUMPTITIBUMBUMP

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Thanks for this link Eric. This is a truly wonderful piece of commentary and explains in simple laymen terms. It is a shame that it is rather lost (given all that is going on) by parliament. I am actually so shocked by some of the measures that have been brought in over the last couple of days. The treasury's reaction has scared me as it's the clearest sign yet that this problem is out of control. We could be faced with an economic earthquake.

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Thanks for this link Eric. This is a truly wonderful piece of commentary and explains in simple laymen terms. It is a shame that it is rather lost (given all that is going on) by parliament. I am actually so shocked by some of the measures that have been brought in over the last couple of days. The treasury's reaction has scared me as it's the clearest sign yet that this problem is out of control. We could be faced with an economic earthquake.

Totally agree Ktp --- spread it around --- send it to all your friends /their friends etc etc.

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