Remember When People Used To Say?

[waitingscot]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

[shermanator]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

Not just here that prices are way overvalued in relation to earnings. Spain, France and possibly Australia have artificially propped up their markets. America hasn't and prices are now affordable to many 'hardworking families' lol! The USA is the place to emigrate guys, no doubt.

[ken_ichikawa]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

Although the government can't really do much about it, they will torch an awful lot of people and use bulldozers to move money in a futile attempt at proving you wrong.

[Bruce Banner]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

"Who's laughing now?"

Me for one, I've been far better off renting over the last five years and the excrement will hit the ventilation device soon.

What is soon? I expect house prices to fall 30 or 40% over the next three or four years.

[Where is my pen?]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

yes, well it was mislead thinking from the start.

when you think about it, markets can only exist because of government anyway (it is the most basic purpose of having a government in the first place), so it is a strange fancy that somehow governments are slaves to them

i'm afraid that governments are in control ultimately. it is the job of economists to persuade governments of the many advantages of freedom over regulation. but it is individually profitable to lobby for regulation hence the system is doomed to failure without strict limits on the scope of government.

[@contradevian]

yes, well it was mislead thinking from the start.

when you think about it, markets can only exist because of government anyway (it is the most basic purpose of having a government in the first place), so it is a strange fancy that somehow governments are slaves to them

i'm afraid that governments are in control ultimately. it is the job of economists to persuade governments of the many advantages of freedom over regulation. but it is individually profitable to lobby for regulation hence the system is doomed to failure without strict limits on the scope of government.

The reason I joined HPC was to gain some insight as to why house prices were gaining constantly despite the long term fundamentals (affordability, earnings etc).

I came to the conclusion it was due to 1. the East/West trade/savings imbalance (eastern nations lending their savings back to us to buy cheap tat and ..errr houses and 2. the emancipation of women and dual income families bidding up the price of property. You could also the throw in a 3. immigration and 4. planning.

Edited April 2, 2010 by SirStirlingSlumlord

[bulldog]

"Who's laughing now?"

Me for one, I've been far better off renting over the last five years and the excrement will hit the ventilation device soon.

What is soon? I expect house prices to fall 30 or 40% over the next three or four years.

[eric pebble]

I came to the conclusion it was due to 1. the East/West trade/savings imbalance (eastern nations lending their savings back to us to buy cheap tat and ..errr houses and 2. the emancipation of women and dual income families bidding up the price of property. You could also the throw in a 3. immigration and 4. planning.

Agree with all the above - which are not exclusive of course....

There's another cause too.......... which has been MASSIVE..............

LIAR LOANS

[MOO CLUB]

"Who's laughing now?"

Me for one, I've been far better off renting over the last five years and the excrement will hit the ventilation device soon.

What is soon? I expect house prices to fall 30 or 40% over the next three or four years.

Your landlord is certainly happy.

[D.C.]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

Can I point you in the direction of the incredibly large deficit that has only ever been equalled when fighting short Europeans bent on World domination?

You know, that deficit that is propping up the housing market?

The one that will destroy the economy if it carries on much longer?

Ring any bells?

This show isn't over by a long stretch, have patience.

[Opulize]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

Fair point. And you can throw in the bitter irony that they have used our money (i.e. future taxation) to do so.

I expect things will still end up in the same place long term though.

[Bloo Loo]

Fair point. And you can throw in the bitter irony that they have used our money (i.e. future taxation) to do so.

I expect things will still end up in the same place long term though.

exactly.

and who is buying the houses to prop the market....Government??? I dont think so.

[quinnbear]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

Actually I am not even sure that those who benefitted (or believe they have) from HPI are actually laughing. I get the feeling that there is a creeping realisation that the price paid to save those banks that were "too big to fail" may actually be a price that we really don't want to pay.

In my own HPC diary (maintained just for my sanity) I think I wrote in 2007 that one of my greatest fears was that the government would feel the need to intervene and stop the inevitable HPC. And they have done exactly that. Well done Brown!

I still don't think the govt has beaten the market, they have simply expended an unbelievable amount of tax-payer funded debt in order to try. Didn't the Tories borrow quite a bit of cash (in old pre NuLab money) to try and stop the markets having a run on the pound in 1992? And did it work?

QB

[Cicero]

Can I point you in the direction of the incredibly large deficit that has only ever been equalled when fighting short Europeans bent on World domination?

You know, that deficit that is propping up the housing market?

The one that will destroy the economy if it carries on much longer?

Ring any bells?

This show isn't over by a long stretch, have patience.

Absolutely spot on!

[RufflesTheGuineaPig]

"Don't worry the goverment won't let house prices collapse?"

And how we used to laugh! "What do you think the government can do about it?" "You can't beat the market you know!"

Well who's laughing now?

The can't defeat the laws of mathematics.

[mentholist]

The can't defeat the laws of mathematics.

They can spend prudent people's money to try though. *******

[eric pebble]

They can spend prudent people's money to try though. *******

Oh... What does ******* mean, I wonder??

[catsick]

from my perspective which is looking to buy a nice country house to use as much of the year as the taxman will allow me to be in the uk , prices are down about 40% if you include the fall in the gbp. The longer this pans out the cheaper it will get, especially given the tax rises this year should hit the higher end properties hardest . I am in no hurry at all , If you also factor in I made over 25% last year on my liquid funds then its basically half the price ...

[Bruce Banner]

Your landlord is certainly happy.

I should hope so.

Throughout my business life I always made a point of keeping the suppliers happy with prompt, hassle free, payment in return for good service and keen pricing, my relationship with my landlord is no different.

[geoffk]

Your landlord is certainly happy.

Why buy to let landlords won't profit from the so called 'rental boom'

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=10347&cat=44-0-0

[blankster]

The house price crash is hidden because it's not the asking prices or actual selling prices that have fallen but the overall amount borrowers have to repay because or the lower interest rates. That could all change, of course, but we tend not to think that far ahead.

[Pole]

The one that will destroy the economy if it carries on much longer?

Ring any bells?

This show isn't over by a long stretch, have patience.

Back in 2005, no one on this site believed that the government would rather destroy the economy than allow prices to crash nominally.

That's the point. If it carries on much longer, everything will collapse. And that's not what we thought in 2005 would happen...

I think most of us (myself included) believed that the UK will follow the US path in terms of nominal falls. It still hasn't happened.

[Guest Noodle]

Back in 2005, no one on this site believed that the government would rather destroy the economy than allow prices to crash nominally.

That's the point. If it carries on much longer, everything will collapse. And that's not what we thought in 2005 would happen...

I think most of us (myself included) believed that the UK will follow the US path in terms of nominal falls. It still hasn't happened.

The Ouija board just spelled out . . . D . . a . . . d..d . . y . . b . . e . a . . . r.

[eric pebble]

The Ouija board just spelled out . . . D . . a . . . d..d . . y . . b . . e . a . . . r.

[Guest Noodle]

Surely you remember Daddybear and all his nominal stuff?

Anyway, real estate back in the real world. A short time ago I had a call from sister. Perhaps you recall that for a long time shes been a real estate agent in the sleezy city of Pattaya selling condos to sexpats.

'It's dead.' Nothing is selling, there's no one here'.

Seems even the Ruskie's don't have the roubles for a bedsit.