Thursday, October 15, 2009
Credibility?
There won't be another housing crash
Arguments are numbered 1, 1b and then 3 - say what?. I will post the Cliff article too. "Think about it. You can print more money, which makes it worth less, but you can't easily print more houses." Erm right
Posted by techieman @ 12:25 PM (1309 views)
5 thoughts on “Credibility?”
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techieman says:
I know bad form and all that but i just noticed… “land of confusion” in the comments – is that one and the same?
letthemfall says:
Motley Fool used to be a half-reasonable website. This is the dumbed-down version, and this author is trying to take it a step further.
techieman says:
Apologies the Cliff D’arcy article has been posted here :http://www.housepricecrash.co.uk/newsblog/2009/10/blog-summer-bounce-over-25721.php
the link to it is : http://www.lovemoney.com/news/the-property-ladder/get-ready-for-the-housing-crash-part-ii-3994.aspx
The comments interest me. I am really unsure why Bulls and Bears cant have diverse opinions but still get on. Maybe because they are so polarised?
uncle tom says:
What an idiotic piece..!
The income multiples are based on the total income of the mortgage applicant(s) – and that is almost always two people now.
He also needs to realise that the current income multiple is of those who are actually buying at the moment, which, err, – excludes everyone who has been priced out..
..factor those people back in, and you get an average income multiple of about 5, and if you take only the primary income, you are pushing much higher.
At the extreme end of the scale, 5x income is extremely oppressive, and when taken on in joint names, will serve to make it almost impossible for a young couple to afford to start a family.
As the norm, the average, it is simply not credible.
jackas says:
People value houses more than money seems to be what this spotty faced little oik is saying. I wonder if that is true for a the majority of people, or just those obsessed by house prices.
We need two currencies – one for homeowners and one for non-homeowners. Let them float against each other, and there would never be a housing bubble again.