Disaster for Britain as housing becomes more affordable

Really2

Wookster wrote: »

With regard to house prices, there is no complexity. It is simply a ponzi scheme. You'll be able to read much more at http://en.wikipedia.org/wiki/Ponzi_scheme

Do you not see any resemblence between the housing market bubble and a ponzi scheme?

The same could be said of any market, comodities etc.

The idea of a piramid sale is very simlar to every business.

Really2

longtimelurker wrote: »

Care to back this up?

And remember, around 60% of people are mortgage holders not property owners.

Funny I seem to have the deeds and I am down as a "home owner"

I am Liable for the loan secured or my house but by law I am a owner of the land just that the loan to buy it is secured against it.

harrup

stephen163 wrote: »

Increasing house prices make people feel secure and more ready to splash their cash. This is surely a good thing for economic growth, and the economy as a whole. What good is wealth to an economy if it is tied up in a theoretical house price valuation? At the very least, people who MEWed and spent were doing a service for the economy. Everyone benefits from consumer spending.

I.

I understand what you are saying. And I agree up to a point. Take my word for it - I'm hardly against shopping! I'm proud to say that I've done MORE than my fair share to support the economy:p

But there is a WORLD of difference between supporting the economy via spending money one actually has...vs. one we [EMAIL="DON'T@T."]DON'T[/EMAIL]. It's not people spending their money which caused the current broohaha, is it? It's people spending without having it.

I still fail to understand how getting neck-deep into dept would benefit either the individual or the economy apart from creating a temporary and fallacious "feel" of wealth.. How can accruing dept ad infinitum be beneficial for a society? Puzzling.

mr.broderick

Wookster wrote: »

With regard to house prices, there is no complexity. It is simply a ponzi scheme. You'll be able to read much more at http://en.wikipedia.org/wiki/Ponzi_scheme

Do you not see any resemblence between the housing market bubble and a ponzi scheme?

Is this also where the insult "You pontz" comes from?

ie Wookster you really are a pontz.

StevieJ

Wookster wrote: »

With regard to house prices, there is no complexity. It is simply a ponzi scheme. You'll be able to read much more at http://en.wikipedia.org/wiki/Ponzi_scheme

Do you not see any resemblence between the housing market bubble and a ponzi scheme?

If it is a Ponzi scheme you better get in quick, you don't want to be the last one in

stephen163

I think a lot of people, especially those who have not studied economics in any great detail, fall for the fixed pie fallacy. Wealth can be created, it is not a fixed pie. You can make the pie bigger. Call me a stupid optimist, but we have witnessed in the last 100 years in the developed world one of the most prolonged and sustained increase in wealth in world history. Nobody can deny this - if you do, prove to me that the average Briton today is less well of than one in 1900. This has happened because of trade, transactions, investment. Releasing equity from home ownership increases economic wealth overall, even if the new debt incurred by the homeowner is equal to the monetary value transferred to the rest of the economy. It is not a zero sum game, and money is very different to wealth. These are the crucial points you need to have due cognisance of.

harrup

stephen163 wrote: »

I think a lot of people, especially those who have not studied economics in any great detail, fall for the fixed pie fallacy. Wealth can be created, it is not a fixed pie. ....It is not a zero sum game, and money is very different to wealth. These are the crucial points you need to have due cognisance of.

I think all these are fair points. But since they pertain to convoluted abstract concepts.... I'll sensibly shut up.

Thanks for trying to explain it, though.

Wookster

mr.broderick wrote: »

Is this also where the insult "You pontz" comes from?

ie Wookster you really are a pontz.

Congratulations. Another addition to the ignore list. MSE becomes a happier place by the day.

Graham_Devon

mr.broderick wrote: »

I sell cars graham, what do you do?

Is it busy? Seems not? Optimistic?

mr.broderick

Graham_Devon wrote: »

Is it busy? Seems not?

It's not about being busy it is about nailing the next graham that walks in with gap,ppp,superguard,10%flat. One walks in every day.