Saturday, Oct 31, 2020

The worse economy gets, the higher the prices go

BBC: House prices climb to record high, says Nationwide

Oxymoronomics.
With the NEW economy, a new word needs to be defined to explain what is happening. Oxymoronomics is the best I can come up with Oxymoron and Economics.
Nothing adds up.

Posted by deepak @ 01:44 PM (1236 views)
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2 Comments

1. mombers said...

Amazing how long this abject failure has continued. I'm getting the message that a smaller mortgage is better than a bigger one through to more of my friends and family. We've just suffered a massive mortgage increase with our move. The house we're in now got ~£150k worse value over the 6 years that we were in our flat, which we only managed to fleece our buyers an extra ~£100k, leaving us with at least £50k extra mortgage. Alternatively, we could have bought a better house for the same money.

It looks like all the money that people are saving by not participating as much in the productive economy has just flowed into land values, fuelled by mortgages that keep getting cheaper (for the asset rich at least)

Monday, November 2, 2020 01:31PM Report Comment
 

2. deepak said...

@mombers

You are right, the reality does not seem to match up with the numbers at all. The plan is simple by Govt and BoE, the money printing to keep up asset inflation in the economy.
The govt debts taken out to pay for furlough is payment towards mortgages, car loans and credit cards bills.

What percentage of the money paid in furlough £2000 net per person do you think a person needs to feed themselves a month?
Think what the extra money is for?

Monday, November 2, 2020 10:39PM Report Comment
 

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