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"Oversupply the cause of house price crashes"

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Comments

  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    shortchanged wrote: »
    Conrad if you really believe this statement then I'm afraid you lack any credibility.

    Why?

    Conrad's belief puts him right beside the majority of mainstream economists. All of whom have far more credibility than you.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    HAMISH_MCTAVISH wrote: »
    Why?

    Conrad's belief puts him right beside the majority of mainstream economists. All of whom have far more credibility than you.

    McTavish it has been well documented that high oil prices consistently precede a recession.
    Why are we here?......................because we are not all there.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    *sigh*

    Correlation. Causation.

    You may want to learn the difference.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    shortchanged wrote: »
    McTavish it has been well documented that high oil prices consistently precede a recession.
    sorry to disappoint but something well documented on this forum doesn't mean that it's documented in the real world... we've had the recession if you hadn't realised...

    theoildrum-recession-oil-chart-722714.png




    6a00d83452403c69e20115712aa3c3970c-pi

    have a look at correlation and causation - you might understand then...
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    chucky wrote: »
    sorry to disappoint but something well documented on this forum doesn't mean that it's documented in the real world... we've had the recession if you hadn't realised...

    So does that mean if oil prices continue to rise we still won't see a double dip then chucky?
    Why are we here?......................because we are not all there.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Oil prices don't have an impact.

    Interest rates don't have an impact.

    Removing any other stimulus won't have any impact.

    Blimey....what DOES have an impact?
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    Graham_Devon wrote: »
    Oil prices don't have an impact.

    Interest rates don't have an impact.

    Removing any other stimulus won't have any impact.

    Blimey....what DOES have an impact?

    I'm not really sure any more Graham. :(
    Why are we here?......................because we are not all there.
  • FATBALLZ
    FATBALLZ Posts: 5,146 Forumite
    adr0ck wrote: »
    was that meant to be a funny comment?

    Not really, just confused that after all the banging on about supply and demand, the opening up of supply of land in the budget hasn't been mentioned at all on here, despite every other aspect of the budget having been spun into a preclude to a new house price boom.
  • myhouse_2
    myhouse_2 Posts: 553 Forumite
    500 Posts
    Much of the oversupply in these markets came directly from an abundance of credit. The abundance of credit was partly caused by low interest rates which allowed people to pay off that credit.
    All that fell apart of course - and common sense would suggest that when people's mortgages go from 300/month to 600/month then people will be less able to overpay for houses.
  • the_flying_pig
    the_flying_pig Posts: 2,349 Forumite
    Why is it called "oversupply"?

    What does the "over" bit mean? 'Too much' in some sense? Too much for what? To be a serious contender for the title of world's highest house prices?

    Doesn't sound too bad to me :think:.
    FACT.
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