We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

This can't go on: house prices must drop or wages must rise.

245

Comments

  • carolt
    carolt Posts: 8,531 Forumite
    Good spot, Graham.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Good.

    But the point is that once that goes, the bubble bursts. Or bursts on a bigger scale anyway.

    Saying they should be with us a while doesn'd detract from the article, more kicks the can.

    But when that goes wages will be climbing again :beer:
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Silverbull
    Silverbull Posts: 369 Forumite
    Graham_Devon wrote: »
    Good.

    But the point is that once that goes, the bubble bursts. Or bursts on a bigger scale anyway.

    Saying they should be with us a while doesn'd detract from the article, more kicks the can.

    Exactly right.

    The argument that the base rate may stay down for a long time yet does not mean there will not be a crash.

    The longer it is put off the worse things can get.

    The base rate has to go back to normal, the longer they wait its just telling people the crisis is worse than we thought.
  • olly300
    olly300 Posts: 14,738 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Silverbull wrote: »

    The base rate has to go back to normal, the longer they wait its just telling people the crisis is worse than we thought.

    What's normal? 0% or near 0% for 10 years like Japan?
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • ILW
    ILW Posts: 18,333 Forumite
    olly300 wrote: »
    What's normal? 0% or near 0% for 10 years like Japan?

    Accompanied by a 50% fall in house prices in Japan.
  • olly300
    olly300 Posts: 14,738 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ILW wrote: »
    Accompanied by a 50% fall in house prices in Japan.

    Which indicates interest rates don't have much to do with it then.

    And should only be kept at low levels as long as businesses are happy.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • ILW
    ILW Posts: 18,333 Forumite
    or as long as there is no risk of high inflation.
  • Silverbull
    Silverbull Posts: 369 Forumite
    ILW wrote: »
    Accompanied by a 50% fall in house prices in Japan.

    It was actually 80% house price crash in Japan because interest rates were kept too low for too long.
  • olly300
    olly300 Posts: 14,738 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ILW wrote: »
    or as long as there is no risk of high inflation.
    Bigger issue in Japan is deflation.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    StevieJ wrote: »
    But when that goes wages will be climbing again :beer:

    Wage inflation beating general inflation, in order that people can spend even MORE of their income on debt.

    I believe the term is "your avin a giraffe mate".
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture