Why are the bulls getting scared?

Kohoutek

Pobby wrote: »

Me, I gave up predicting long ago. Our own Paul Daniels of a Prime Minister, plus his mates, have produced tricks that would be worthy of the magic circle yet they cannot last as instruments that are putting off the results of a decade of debt. Imagine the crisis if housing did crash. It would be frightening but how long can this bubble be sustained.

The 90`s recession was harsh, very harsh and I had hoped that in my life time I would never ever see people lose their homes as I did then. However, I do think that there has to be an end to this so called support.

By propping up the house price bubble, the government have only made the inevitable crash and the pain it will cause even worse. It's obvious that the solution to a bubble created by excessive amounts of credit is not supplying more credit to the lenders, but that's exactly what the government has done instead of letting house prices deflate to closer to the historical average.

Unfortunately, it won't just be people losing their homes that we have to worry about, it's also banks potentially having to write down property assets as a result of falling prices...apparently commercial property has already been significantly devalued...and that means going to the government for more money. In other words, it's probably going to end in a catastrophe.

If the government had accepted from the beginning that a drastic correction was a natural consequence of years of absurd levels of house price inflation, it would have mitigated the consequences. Unfortunately that wasn't a solution on the table for a party with a election to fight, so they choose a route that will shaft a generation of taxpayers instead.

michael1983l

You are right, this government in it's decisions over it's whole term in office have made a whole generation have to face years of hardship. The bubble has burst. whoever said Gordon Brown was prudent is an idiot.

jetta_wales

But he abolished boom and bust remember? Pfft!

doire_2

smamst wrote: »

Just read message after message yesterday of Hamish, Chucky and their clan pumping the forum with non articles about how the market is surviving and thriving.

In their type of market they would be gloating not pumping.

And just yesterday the government has said that prices rose only 2.9% in 2009.

Graham_Devon

jetta_wales wrote: »

But he abolished boom and bust remember? Pfft!

And he's sticking by it. It's just Boom.

And he will do everything in his power to keep it booming, regardless of what it's actually booming on.

nitr02007

Emy1501 wrote: »

I do wonder sometimes what sort of life some people on this forum have. Some people are posting up to 35 times a day and therefore they are probably spending maybe up to 5 hours a day on the forum.

In my opinion the more you post the more you are not really convinced by your own argument.

I agree. It seems that some people think that you can win an argument by sheer number of posts - a large proportion of which are odious personal attacks rather than any meaningful debate.

As for the economy I think if you join the dots we appear to be heading into the perfect storm of simultaneous energy crisis and debt crisis. Not good, not good at all.:( The bulls have looked up from their naval gazing and realised what's on the horizon.

LydiaJ

doire wrote: »

And just yesterday the government has said that prices rose only 2.9% in 2009.

Which is less than general inflation.

jetta_wales

ariane5 wrote: »

Hmmm...why is it that you always resort to this kind if abuse when you lose control of a topic?

Loose control of a topic? That was my first post in this thread and it was thanked by 4 others for the lighthearted joke that it was.

You're absolutaly nuts woman, seriously lol.