Really really gloomy article from Robert Peston this morning

shaven-monkey

If in danger, if in doubt, run in circles, scream and shout.

I have an investment in the world economy. It allows me to purchase goods and services. Still and all I've been expecting a market correction for some time, am i responsible for the end of the age of gluttony?

wintersunshine

huntersc wrote: »

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.

And I think you a heartless, selfish jerk. Not everyone can be as lucky as you my friend. Some people are born with nothing and live from hand to mouth everyday and are not able to build up massive savings to survive the type of recession that is going to hit us.

PS I hope your wife doesn't cry when she loses her job and I hope she appreciates it when you tell her it's for her own good and that her job was a load of nonsense anyway. What a lucky lady she is.

You're Priceless. I hope you're as safe as you think you are.

granville_2

ad44downey

wintersunshine wrote: »

House prices were high because we had full employment. We have never had full employement before. The only thing that was ever going to bring house prices down was a recession and they are ugly. And this one is going to be really ugly.

Wrong!!! House prices were high because interest rates were kept artificially low and banks were lending any muppet that wanted it 10+ times their income.

caveman38

Surely passing an opinion on this thread is no different than polling your vote. We all have different opinions and none of us will be able to do anything about the present situation.
It follows that we all have different agendas that some will like and some dislike. In my case if the recession is the only way to bring house prices back to affordable levels then so be it. I feel it is my generation that has caused this problem and as such I will have to suffer similarly to rectify it.
When I was 25, I was able to buy my house in the London suburbs. That is not a luxury my lads have.
We have had it too good for a long time and common sense should have told us that it wouldn't last.

wintersunshine

caveman38 wrote: »

When I was 25, I was able to buy my house in the London suburbs. That is not a luxury my lads have.
We have had it too good for a long time and common sense should have told us that it wouldn't last.

They won't have the luxury of a house if they don't have a job.It isn't logical that just because there is a recession that somehow, suddenly they will own a house. Unless, of course, sorry I forgot, all HPCers and their nearest and dearest are teflon coated and won't be affected by the recession. LOL:rotfl:Sorry I forgot that for a second.

Furthermore, why is it OK to cheer on a house price crash and a recession in which many people will lose their jobs and businesses will be destroyed just because you think your sons are entitled to a house in London?

As for the "we have had it too good for too long, we should have known it couldn't last" - bit pessimistic frankly. Personally, I think we deserve to have it good all the time.

neverdespairgirl

wintersunshine wrote: »

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?

I actually think HPI may well have caused more misery, over hte population as a whole. People worrying every month about handing over a ludicrous proportion of their incomes in mortgage payments, having to move away from family and friends, not able to buy - a lot of misery, there.

wintersunshine

neverdespairgirl wrote: »

I actually think HPI may well have caused more misery, over hte population as a whole. People worrying every month about handing over a ludicrous proportion of their incomes in mortgage payments, having to move away from family and friends, not able to buy - a lot of misery, there.

Come back and tell me that in 6 months. You've never seen a recession and you've never seen a recession like the one coming.

huntersc

wintersunshine wrote: »

And I think you a heartless, selfish jerk. Not everyone can be as lucky as you my friend. Some people are born with nothing and live from hand to mouth everyday and are not able to build up massive savings to survive the type of recession that is going to hit us.

PS I hope your wife doesn't cry when she loses her job and I hope she appreciates it when you tell her it's for her own good and that her job was a load of nonsense anyway. What a lucky lady she is.

You're Priceless. I hope you're as safe as you think you are.

I'm extremely selfless. I understand the human cost but the cost would be much greater without a correction. You're getting for too emotive about this and it's clouding your judgment. It's not about being lucky. It's called prudence and I hope that this is a trait many more people develop once this crash is over.

It's crucial that attitudes to debt and borrowing change. We simply couldn't carry on the way we were. Something had to give and I'm glad it gave now because the longer it went on the more painful it was going to be.

In the cold light of day we will all be much happier once this has panned out. The only thing I worry about is the government getting far too involved and prolonging the whole process.

You need to think about this objectively rather than running around blaming everyone you can think of and screaming "THE END OF WORLD IS NIGH AND IT'S YOUR FAULT"

I presume you lack the necessary economic knowledge to understand many of the arguments put forward (as demonstrated by your resorting to calling me names) but I do hope you will try and understand the issues a little more.

caveman38

wintersunshine wrote: »

They won't have the luxury of a house if they don't have a job.It isn't logical that just because there is a recession that somehow, suddenly they will own a house. Unless, of course, sorry I forgot, all HPCers and their nearest and dearest are teflon coated and won't be affected by the recession. LOL:rotfl:Sorry I forgot that for a second.

Furthermore, why is it OK to cheer on a house price crash and a recession in which many people will lose their jobs and businesses will be destroyed just because you think your sons are entitled to a house in London?

As for the "we have had it too good for too long, we should have known it couldn't last" - bit pessimistic frankly. Personally, I think we deserve to have it good all the time.

Well actually, I do think they are entitled a house in London. They are Londoners, born and bred here and have been at work continually since Uni. Both earn a good salary and hopefully are in secure jobs.
I know that nothing is certain and their jobs like anyone elses aren't 100% safe.
The one thing I do know is that a year ago there was no way they would have been able to afford to buy a property. This crash or the beginnings of one has opened a door of oppurtunity.
BTW like others we are not cheering other peoples misfortune. I am just glad that at last they may get what they deserve or entitled as you put it.