Sunday, October 4, 2009

Phoney Housing Market and False Hopes

Julian Knight: How was the house price crash for you, Darling?

"....this optimism reminds me of the final scenes of Blackadder Goes Forth, when the boys are standing in the trench ready to go over the top and the guns suddenly stop firing. For a moment they think the war is over, and Captain Kevin Darling announces, "Thank God, we lived through it, the Great War 1914 to 1917". The truth is that what we are seeing now is a phoney housing market, a false hope like that experienced by poor old Captain Darling. "

Posted by sybil13 @ 08:23 AM (1061 views)
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3 thoughts on “Phoney Housing Market and False Hopes

  • yes, and to add to the analogy, brown reminds me strongly of general melchett.

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  • There’s very little to add here – he’s completely right. The house price crash has been cancelled for the time being because of market intervention. It seems to me that the Bank of England and government have agreed that something has to be done to save their generation’s wealth but who represents the economic interests of everyone else? Who represents the 18-35 age group?

    The problem is that this is indistinguishable from intervention to save the rentier wealth of one generation by simply robbing from another.

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  • This intrigued me.

    “Overall, transactions are just over half to two-thirds their normal level. If you plotted transaction levels against previous house-price moves you’d swear the prices should still be falling rather than rising, but the anomaly reflects the strangling of supply. ”

    What is “normal” level? Surely, it can’t be based on the frenzied activity of 2005 to 2007? In no way could those times be described as normal.

    Could “normal” be current transaction numbers?

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