Sunday, December 2, 2007

Learn the future from the past: media coverage at the onset of the 90’s crash

UK Housing Market on Brink of Price Crash - Media Lessons from 1989!

"The UK Housing market is teetering on the brink of a crash led by the buy to let sector investors jumping ship. But the messages coming from the major banks and UK central bank are still benign. In many ways the situation is reminiscent of the initial stages of the the early 1990's property bust, which was also accompanied by soothing statements that ignored the facts on the ground as this article will illustrate."

Posted by confused76 @ 12:52 PM (1020 views)
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7 thoughts on “Learn the future from the past: media coverage at the onset of the 90’s crash

  • “Of particular note is the March 89 report that The channel tunnel will lead to a 20% rise in prices, 4 months later that the tunnel wil force prices down by 20% ! A 40% variation in 4 months ! By the end of 1989, despite house prices having started to fall during 1989 the banks and related institutions were still issuing bullish announcements on housing market expectations for 1990.”

    Ahh hahhah ahhhh a hhhh hhahah ah ahhhhah haha hahahhahha

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  • Why would the banks say anything different as its not in their interests to do so, its like being at a party and wanting to leave but not wanting to be seen as a party pooper by being the first out of the door!

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  • I also think that since home ownership is so high in the UK, it’s highly likely that the people writing articles are describing their own assets. Nothing like enlightened self-interest!

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  • I like the quotes from the media from around 1989. Very clever and some good archive work there.

    My favourite is the very first one:

    “The Times TUE 03 JAN 1989 Agents optimistic about house prices A leading national firm of estate agents believes a collapse in the property market in 1989 is highly unlikely.”

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  • little professor says:

    This article is copied from our very own housepricecrash.co.uk

    Get the original and best version here:
    http://www.housepricecrash.co.uk/wiki/Read_what_the_Newspapers_were_saying_last_time_around

    It’s really interesting to see the evolution of the headlines from
    “House prices still soaring”
    to
    “Housing market may be cooling”
    to
    “Cut in interest rates needed now, help, help!”
    to
    “Random Estate Agent predicts prices will start to recover next year”

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  • Yeah love it. It’s soooooo different this time. People have borrowed 2,3,4,…. times what they had in the last crash. It always cracks me up when the media reports that interest rates have ‘soared’ recently! Hmmm, by 1%, oh wow that is such a lot. If it’s inflation they’re going to tackle then we’re going to see almighty carnage.

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  • The majority of journalists writing financial articles for papers don’t have an education or experience of the financial sector.

    Most have English degrees; the ones who shied away from maths at school, hence their inability
    to understand basic percentages. The ones over 40 are heavily into BTL. Bull shitters the lot.

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