Sunday, Sep 24, 2006

Telegraph bear sounds note of caution

Daily Telegraph: House values come into their own as pension fears rise

Perhaps more of a cough than a growl, but the Telegraph economics editor is firmly of the view that prices could fall. See in particular the final paragraph, which starts "House prices have been rising for so long that people are becoming increasingly convinced that this could go on indefinitely. That kind of assumption is, of course, unwise and risky." Given his need to stay 'on message' with the rest of the property section, who work tirelessly to please the property developers and estate agents, this is good stuff.

Posted by bidin'matime @ 11:05 AM (568 views)
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9 Comments

1. The Capitalist said...

The tax man's taken all my dough,
And left me in my stately home,
Lazing on a sunny afternoon.
And I can't sail my yacht,
He's taken everything I've got,
All I've got's this sunny afternoon.

Save me, save me, save me from this squeeze.
I got a big fat mama trying to break me.
And I love to live so pleasantly,
Live this life of luxury,
Lazing on a sunny afternoon.
In the summertime
In the summertime
In the summertime

Sunday, September 24, 2006 11:20AM Report Comment
 

2. japanese uncle said...

Here is the summary of what happened and what will happen in, say, in another fifiteen years time.

1. Coordinate central banks (not owned/controlled by taxpayers at all, but a handful of global financial tycoons, contrary to the perception of the general public) to soak the LTS (Lamb to the Slaugher) in the pool of cheap money.

2. Coordinate major commercial media (enslaved to shareholding financial tycoons, banks, etc, as well as advertisors) to bombard the LTS with all those brainwashing Property TV programmes to convince them that "it's now or never" and in particular to those kids who are intentionally kept unenlightened under the campaign promoting stupidity and ignorance (e.g. Big Brothers, Celebrity ---) while suppressing genuine intillectual curiosity not least in the area of economic/political history, in an effort to deter them from seeking the truth.

3. Accelerate this madness to other countries to extend the fictional boom on a global scale.

4. Coordinate the Oil Majors with collaboration of producers often under the control of corrupt selfish/greedy ditators (except Chavez in Venezuela who is incidentally offering cheap gasoline to the poor New Yorkers, and London Bus Service via Ken Livingston connection ), along with the media campaign to drive psychological insecurity yelling 'Peak Oil' which is absolutely controversial, being simply a matter of opinion rather than an established fact (Look! They have kept saying only 30 years reserve before exhaustion for more than 30 years), to rig the market.

5. Given petro price the single most influential parameter over the general price level, economy of nations will be subject to inevitable inflationary pressure, providing nice pretext to the central banks for raising base rates or official discount rates.

6. Cheap money is quickly withdrawn from the money market, leaving the LTS at a loss, who are forced to sell their houses bought by the ultra-overstretched finance, or are subject to repos.

7. Millions of the LTS left with cripling debt even after the loss of their houses keep repaying to their banks and BS.

Here we are witnessing the emergence of the 21 century slavery, nothing less.

Sunday, September 24, 2006 12:02PM Report Comment
 

3. Mjchum said...

The fantasy that homes will provide for people in their old age does not account for demographic change an an actual decline in population starting in about fifteen years time. In the mean time, because of the rading of traditional pension funds by both the government and the pension companies themselves, industry is starved of the finance it needs for development, training, capital investment etc. If more than half of the value of this country is stored in the housing stock, how is it that the inflation rate (RPIX) is so low when house prices have been inflating at 20%+ compound per year?

Sunday, September 24, 2006 02:27PM Report Comment
 

4. bidin'matime said...

But the difference is that the LTS have (in the UK at least) a 'get out of jail free card' in the shape of bankruptcy or even IVA. So if, as you suggest, JU, there is a world-wide conspiracy, it will back-fire as the proletariat become disillusioned and throw in the towel. Far better to have everyone slaving away, happily repaying their mortgages, than to blow them out of the water. This is the fine line that governments have to tread.

Far from hyping it further, I think that governments are trying to work out how to stop it going pop - how to deflate it gently without a collapse in asset values and confidence. They are like the driver of a magical mystery tour bus, driving the same passengers round the same mediocre sights over and over, whilst knowing that, sooner or later, far from being able to take them to something that might be the local equivalent of the Taj Mahal, all that will be left to show them is the slag heaps and industrial estates.


Sunday, September 24, 2006 05:28PM Report Comment
 

5. Ttimgg said...

200 years ago money lenders were universally loathed and despised as parasites engaged in legal robbery. Over the following decades, banking became a respectable business. Now we have deregulated, and money lending is once again theft by another name. Salesmen on commission lending to people who they know will never be able to pay back the loan are little better than theives.

But Japanese Uncle, I think you should take Peak Oil more seriously. Until very recently the Big Oil companies did their best to rubbish peak oil, in the same way that they rubbished global warming. They are owning up now because they cannot deny it any longer. Peak Oil is not really controversial, and is certainly not a Big Oil plot. Remember, the VIs that cast doubt on Peak Oil recently spent millions on fake research trying to persuade us that global warming was controversial too!

Sunday, September 24, 2006 07:39PM Report Comment
 

6. japanese uncle said...

bidin'matime:

Labour government may well not be privy to, but just instrumental to this global ecomic plot, I guess. Crash Gordon must (contrary to this nickname given in this blog naturally) must be desperate to avoid full-scale collapose of the housing bubble, which if taking place, will haunt him for the rest of his (short-lived, in such event) career or even his life. But there are parties operating on completely different agenda, who do not care a bit about where New Labour is destined to. Incidentally Tony Bliar, for this matter, does not care a sh== about what should become of Labour Party, once he secures his multi-million contract for his obscene biography with Rupert Mad-dog and pensionable life tenure with Carlisle and Halliburton, which will nicely help him pay off his three million mortgage for his Grovesner BTL. For this conman, every stage of his career is just another utterly dispensable step for his self-promotion, quite like his early involvement in CND, which is indeed a sick joke in view of his current frantic promotion of the new Trident Programme.

Anyway, those BTL flatblocks will be destined to be major slum (possibly to be the 21st century council estate) in the next decade, as already shown in the depressive rents on offer.

Sunday, September 24, 2006 09:08PM Report Comment
 

7. the bald man said...

I see the Telegraph is becomong more bearish in several articles today. What other papers will follow?

Monday, September 25, 2006 09:02AM Report Comment
 

8. george monsoon said...

could this all be the work of the Bilderberg group?
(for those unaware, try a google search)

Monday, September 25, 2006 02:03PM Report Comment
 

9. Ticktock said...

Wise words bidin.

Monday, September 25, 2006 04:16PM Report Comment
 

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