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Beware Mindbenders At Work

Soul Reaver

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Another quality article by Our Fred. God if only he was chancellor :angry:

First, there was disinformation about the looming collapse of the housing market. It wasn’t going to happen, then it would be a soft landing – all to maintain a mythical “confidence” on which the property market is supposed to be built.

Now, disinformation about the recovery: housing wasn’t the cause of the UK crisis, and prices will bottom next year – and they won’t lose 40% of their value. What’s more, there’s no way to avoid a re-run of the boom/bust cycle, so get a life and stop moaning.

That’s according to Yolande Barnes, one of the keepers of the secrets of the property market. As head of research at Savills, the up-market property agency, you would think she understood the economics of housing. Believe her at your economic peril.

A Blinkered Foresight

Writing in The Times (Nov. 14), Ms. Barnes reveals that she has adopted my theory of the 18-year cycle. But her learning is evidently selective, because she says “it is hard to see how we will stop the housing market crash of 2027”.

It was not many years ago that she and I were guests at a dinner party where I explained the economics that would stop such crashes. Was Ms. Barnes asleep, or was this a case of selective amnesia?

In any event, she insists that “the roots of Britain’s downturn lie in the credit crisis and the withdrawal of funding by lenders, not the other way round”. This is the kind of disinformation that allows politicians off the hook. If the so-called professional specialists believe in arrant nonsense, can we really blame those who rely on them for advice?

Myth of the Fundamentals

People like Ms. Barnes misled the house-buying public in the run-up to the crash by claiming that something called “the fundamentals” were such that Britain would escape a housing crash. She persists with this perverse way of viewing the world by claiming that the UK housing market “is a different country” from the US.

In terms of reality economics, there are no differences between the UK and US housing markets. But it doesn’t suit some mind-benders to face the truth, for reasons that must be left to others to speculate about.

We can change the rules to prevent the next housing boom/bust. The experts won’t tell you what this would take, however. Why not, is explained in our next documentary – Renegade #2: Messing with our Minds. Watch out for next week’s premiere!

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As John McCain demonstrated utterly without shame, the term "fundamentals" means whatever you want it to mean.

The old man later claimed that when he said the US had sound economic fundamentals, he meant that America was a country of decent hardworking people.

What is even more remarkable is that as far as I know nobody called him on it directly either.

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