Really really gloomy article from Robert Peston this morning

chucky

Austin_Allegro wrote: »

What about those who could afford but didn't want to buy an overpriced asset?

I think the whole concept of 'affordability' in the recent boom became meaningless anyway, as it all depended on the level of debt you were willing/able/stupid enough to take on.

affordability is related to salary and price and probably other factors too, (cash raised by releasing equity or just savings) but want to keep this simple rather than give people the opportunity to try to take this off topic.

if you can't afford and do buy, you do so at your own risk and face the consequences.
if you can't afford don't buy and rent. your choice.

i want to live in Monaco or even Bishops Avenue but can't afford it - it's overpriced and not affordable to me so i can't buy. i have my choice made up for me.

chucky

Austin_Allegro wrote: »

What about those who could afford but didn't want to buy an overpriced asset?

My interpretation of a home is not an asset.
Purchasing a property as part of a BTL investment is an asset.

drc

BlondeHeadOn wrote: »

I know he's not renowned for his laugh-a-minute stand-up comedy, but even for 'our Rob' this is gloomier than usual.....

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

Maybe it's true, we are all doomed....

My brother saw him jogging in our local park the other day. He asked him if he was Robert Peston. Apparently, he looked very scared and sheepishly admitted he was. Apparently he has been blamed for 'exacerbating' the Northern Rock fiasco so probably gets a bit nervous when strangers recognise him. My brother is very genteel though and was merely awed by his celebrity and didn't beat him up:rotfl:.

WTF?_2

neverdespairgirl wrote: »

Anyone else noticed the change in emphasis among former HPI fans?

It's gone from, "house prices will never drop, you're insane" to, "you wanted this to happen, so it's all your fault".

I'd be tempted to say that denial is turning to anger but some of them have been angry ever since the house price subforum was first created.... That's plenty of time for them to move on to 'bargaining'....

http://en.wikipedia.org/wiki/K%C3%BCbler-Ross_model

wintersunshine

!!!!!!? wrote: »

I'd be tempted to say that denial is turning to anger but some of them have been angry ever since the house price subforum was first created.... That's plenty of time for them to move on to 'bargaining'....

http://en.wikipedia.org/wiki/K%C3%BCbler-Ross_model

Well !!!!!!? when you lose your job, I hope you never come on to MSE for a big, supportive MSE hug because all you will get is a big MSE

Old_Slaphead

House prices were high because of cheap & easily obtainable money supply, constant TV promotion, buoyant world economy and the advent of BTL as an income stream/pension asset.

Anybody with half a brain could have figured prices would not continue at 10-20%pa and when the realisation that prices were grossly inflated dawned - then there would be a long period of nil or negative 'growth'

wintersunshine

neverdespairgirl wrote: »

Anyone else noticed the change in emphasis among former HPI fans?

It's gone from, "house prices will never drop, you're insane" to, "you wanted this to happen, so it's all your fault".

Where did I say that? I said HPCers on this board who have cheered on the Housing Crash are crazy and foolish.

I think anyone who cheers on this Housing Crash and therefore a recession is mad. Furthermore, anyone who cheers on a houseprice crash and hence a recession is probably heartless and selfish. How can you wish misery on others?

To then make a post like the OP saying "Oh dear - it's a bit bad isn't it?" Well DOH - yes it is. !!!!!! did you expect! and whatsmore it's going to get a whole lot worse.

Jimuth

wintersunshine wrote: »

I think anyone who cheers on this Housing Crash and therefore a recession is mad.

What if the boom had carried on until the point it exploded into the world's worst ever recession? And instead of some people losing their jobs you have the worst parts of Steinbeck happening down your road?

Cheer on that the lunacy has finally stopped and the bacon is finally being smelled? Definitely.

Perhaps it happened soon enough, perhaps not.

huntersc

I think it's about time we had a recession, about time house prices reduced and about time we all focused on creating and sustaining real wealth rather than debt wealth.

Sure it's all a bit gloomy but it's a good kick up the backside. My company isn't going under. Why? Because we add value, we actually make people real money. My wife's on the other hand, yeah, she might lose her job but the PR industry is a load of nonsense anyway. Getting paid vast sums for results that are immeasurable.

A lot of people will be hit during this recession, but that's the way of the world. We need this gloomy period to reflect on where it went wrong and so we change attitudes to money, borrowing, debt and wealth.

Those of us that were sensible are fine. We have plenty of cash to see us through, long term investments which will be fine and no exposure to debt.

Those that borrowed up to their eyeballs and thought they were rich because of a pile of bricks stuck together with some sand? Well, I guess it's time for them to reevaluate the situation. Pay off the credit cards, pay off the mortgage, finish paying off the car, get rid of all that debt and don't do it again.

So yes, I want house prices to crash. I want them low enough so ordinary people can actually afford to buy without killing themselves by getting into huge debt. If affordable housing and sensible borrowing levels mean that a few people will get hurt then so be it.

We simply cannot continue spending money we don't have. I look around on other parts of this forum, one post yesterday where someone listed their debt. They earned about £2k a month and have £100k on credit cards. It's just stupid. Spending 50%+ on mortgage payments a month, stupid.

You know what's even worse? Blaming the crash on those, like me, that want house prices to move to sensible levels.

Stupid.

WTF?_2

Jimuth wrote: »

What if the boom had carried on until the point it exploded into the world's worst ever recession? And instead of some people losing their jobs you have the worst parts of Steinbeck happening down your road?

Cheer on that the lunacy has finally stopped and the bacon is finally being smelled? Definitely.

Perhaps it happened soon enough, perhaps not.

The longer the unsustainable boom went on, the worse the bust would be.

Unfortunately, the boom went on beyond all belief. As you say, time will tell if the recession came in time. That idiot Brown isn't helping by dragging the whole thing out.