Monday, November 2, 2009

Bubbles, bubbles everywhere.

House prices, It's not just a British thing

A property bubble is hitting cities across the world. But is it here to stay, or are we on the cusp of a double dip? To the dismay of virtually everyone except estate agents, buy-to-let merchants and Kirstie Allsopp, house prices in Britain are defying economic reality and marching up again. And, sadly, we are not alone. In cities across the world (and it's nearly always cities rather than their hinterlands) property speculation is once again rife. The one positive spin-off from the global credit crunch – that family houses might once again become affordable – is disappearing fast.

Posted by wanderinman @ 07:08 PM (1182 views)
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3 thoughts on “Bubbles, bubbles everywhere.

  • The Guardian has been consistently on the money recently. Economic editor, Larry Elliott enunciates one of the key principles of the anti-Homeownerist stance today (in Guardian Economics 2.xi.09 “Painful death of the American dream”),that the system has bought off the workers with high house prices to avoid paying good wages: “Debt of course was the key.The loss of bargaining and spending power of workers in the west was compensated by raging asset price booms which allowed consumers to borrow against the rising price of their homes….If the root cause of the financial crisis was the imbalances in the global economy prompted by the search for higher profits, real reform will require higher real wages in the west,so that consumers are less dependent on debt.” Nice to see the workers getting a mention for once in a long time in the British press.

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  • The Guardian has been consistently on the money recently. Economic editor, Larry Elliott enunciates one of the key principles of the anti-Homeownerist stance today (in Guardian Economics 2.xi.09 “Painful death of the American dream”),that the system has bought off the workers with high house prices to avoid paying good wages: “Debt of course was the key.The loss of bargaining and spending power of workers in the west was compensated by raging asset price booms which allowed consumers to borrow against the rising price of their homes….If the root cause of the financial crisis was the imbalances in the global economy prompted by the search for higher profits, real reform will require higher real wages in the west,so that consumers are less dependent on debt.” Nice to see the workers getting a mention for once in a long time in the British press.

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  • Not sure I agree with that.
    “…require higher real wages in the west,so that consumers are less dependent on debt…”
    When you consider how much crap people buy, all the holidays, … surely peoples’ wages are historically quite high, and no one requires a psp, etc Live within your means… this sounds like the expectant demand of an aged brat child.

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