Wednesday, January 23, 2008
London housing market dead in the water
Sure we must not be happy that a few thousand people lose their jobs, but let me tell you City salaries have ballooned in the past five years for otherwise mediocre skills and qualifications (e.g. the "experts" that have wrecked the global financial services). Easy money - seemingly never ending - fueled the borrowing of 10x more money and propped the London housing bubble. As always, markets are set at the margins. 8k people who lose their jobs make 100k people feel less "secure" about their job prospects. And high rents and house prices evaporate. Kiss the London house market goodbye!