Thursday, April 26, 2007

Not just a conspiracy theory – most people just choose to ignore the obvious, same applies to UK of course

Consequences of Housing Bubble Crash Ignored by the Media for 2 Years

While housing prices rose at 10% to 20% per year, the American people were duped into believing that such huge leaps were just part of the normal business cycle — just supply and demand. They never dreamed that the surge in prices was engineered at the Federal Reserve through artificially low interest rates. Everyone believed that things were just hunky-dory — that it was springtime in “the land of the free and the home of the chronically indebted”. Those who disagreed were derided as doomsayers or lunatics.

Posted by andrew - ealing @ 12:11 PM (690 views)
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8 thoughts on “Not just a conspiracy theory – most people just choose to ignore the obvious, same applies to UK of course

  • shipbuilder says:

    Market Oracle tend to come up with some very good sum-up articles every once in a while. This is one of them. Every bull should read it and try and justify why it won’t happen here.

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  • David20040_0 says:

    OK shipbuilder:

    UK island, about 50 times smaller than the US

    Population of 60 Million and rising compared to 300 Million in the US with a much greater land mass

    Huge immigration

    No sign of slowdown

    Not enough houses being built

    Greater and greater demand vs supply

    The BoE refusing to lift interest rates by anything more than 0.25%

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  • Phoneymcringring says:

    Great article,

    “Those who disagreed were derided as doomsayers or lunatics”

    Guess we know all about that!

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  • converted lurker says:

    It is truly fantastic, check this bit out “This is a real concern since nearly 30% of homeowners (roughly 22 million people) have less than 20% equity in their homes. If prices decline at all, they could quickly lose all the principle on their investment and be left with negative equity. We can expect that more homes will be put on the market to forestall this eventuality.” A third would be in neg eq with only a 20% fall JJJJEEEZZZUUUSSSSSS..!!!

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  • David20040_0 says:

    There isn’t a bubble housing, it isn’t overvalued it is just high comapred to historical trends when the UK wasn’t so crowded.

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  • I have been saying this for over 5 years. Why is this a surprise to this many people?

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  • Well that article was less than cheerful – talk about bringin in the armageddon!

    Oh well – nothing ever stays the same for long in history – better enjoy this summer – take up the ciggies again and relax.

    Looks like US have got another repeat of late 80s on their hands – but this time it’s personal!!!

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  • “Don’t expect help from the media — they will continue to offer Pollyanna scenarios for a situation that is certain to get progressively worse.”

    sounds familiar

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