Tuesday, February 5, 2008

”sound economic fundamentals” – what a joke!

Halifax doubts house price crunch despite fall

''Martin Ellis, Halifax’s chief economist, dismissed wholescale price falls predicting instead sound economic fundamentals and lower interest rates to support house prices. ''

Posted by hpwatcher @ 10:59 AM (1141 views)
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10 thoughts on “”sound economic fundamentals” – what a joke!

  • Check the comments at the foot of the page…….

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  • Anyone who thinks that plummeting approvals won’t be reflected in prices sometime soon have their head in the sand.

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  • Just replied to the comment with a full face slapping salvo and flag waving.

    House prices are unsustainable and re-balance.

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  • Re. comment at foot of page. He’s going to feel a bit daft. Maybe not today. Maybe not tomorrow, but soon and for the rest of of his life. :o)

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  • Yes. We are in a state of transition at the moment; the house market is changing, percentions are clearly very different now to what they were a year – even 6 months – ago.

    I am beginning to think that we are in the stage of ‘the phoney HPC’ – like what people were calling the ‘phoney WW2’ – a period of transition. I think it will end up be far deeper, far more horiffic affair than anyone could possible imagine.

    Property is about to become a very, very dirty word.

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  • Martin Ellis might “doubt” the house price crunch, but his opinion is of no more relevance (and is arguably of far less relevance) than the bloke down the pub.

    No-one else doubts the house price crunch – just ask all those recent subprimers!!

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  • Not a bad job being an economist really. You get paid a fair bit I imagine, and you can talk as much sh*t as you like and have it printed in the newspapers. And you don’t get the sack.

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  • ontheotherhand says:

    He says the Halifax forecast 2 more rate cuts. Will they pass on 100% of these cuts to borrowers, or are interbank lending rates more relevant?

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  • Something I figure and it is this:
    People or companies with lots of properties can set themselves up to become ‘legally’ two or more. I mean that they spawn two or more other companies/legal entities (a bit like all these estate agents which spring up as soon as times are good). Then it is simple ‘one hand sells to the other’. It is good for house prices (they can adjust how much prices go up and even throw in paid deposit deals which really goes back to themselves), it is good for company activities and balance sheets, it keeps a lot of people in paid jobs and busy, and above all the boss – Mr Brown – will stay happy. All one needs is a few punters, foreigners, first-time-buyers, and to be BTL landlords to get sucked in and construct the base of this vast pyramid. A big happy family.

    BUT when some banks get too greedy or careless, they start getting into trouble/lose money and are prepared to say anything to not face reality. The question is why such greedy people get paid so much and are often in good jobs and even continue to get paid saying unreal things. Who cares if Martin Ellis ‘boubts’ or not ‘doubts’?

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  • Is he on a bonus every time he says the word “fundamentals”?

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