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Debate House Prices
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My budget wish - less FSA regulation
Comments
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Ignoring the reasons, if housing costs were half what they are, would not the majority (among those that have to pay) have far better lives?
And so what? If it rained jewels and precious metals from the sky we'd have better lives. It doesn't. We live in the times we live in and constrained by the situation we find ourselves in. Otherwise you're just locked into entitlement rhetoric.
Housing costs are half what they are in South East in parts of the North West. Does that mean life in the North West is better? Well very possibly in some respects, but then again wages are lower too and there's arguably higher unemployment. Housing costs are much much lower in the slums of Delhi. Does that mean life is better?
Situations change. If you don't build housing where people want to live, the price of the housing there is increases. That's the beginning and end of it.0 -
Harsh.
I think it's a decent analogy. Although irresponsible lending in the UK may not have caused the finincial crisis, the way some of our banks were lending did leave them exposed to the effects of a crisis. It's arguable that the banks that weren't offering so may high LTV products, and weren't aggresively lending such large amounts (thus relying on global financial markets) were not caught out as much as those that were.
Ah OK, now it's explained it makes more sense.
I think I said the same thing earlier anyway - Northern Rock was vulnerable to shocks because of the way it operated but hadn't anticipated the precise shock that happened. That doesn't mean that the entire lending industry was vulnerable in the same way. Most lending was well managed, but it was tarred with the same brush post crisis because no-one really knew the extent of the problems.
Arguably the Tsunami was more predictible and that risk should have been mitigated incidentally, I think that will come out in the enquiry.0 -
And so what? If it rained jewels and precious metals from the sky we'd have better lives. It doesn't. We live in the times we live in and constrained by the situation we find ourselves in. Otherwise you're just locked into entitlement rhetoric.
Housing costs are half what they are in South East in parts of the North West. Does that mean life in the North West is better? Well very possibly in some respects, but then again wages are lower too and there's arguably higher unemployment. Housing costs are much much lower in the slums of Delhi. Does that mean life is better?
Situations change. If you don't build housing where people want to live, the price of the housing there is increases. That's the beginning and end of it.
I am referiing to housings costs in general, not just house prices.
My point was that if it at some point it was decided that lower housing costs are a good thing, then measures can be taken to lower them.
General opinion seems to be that high costs are a good thing though, so measures seem to be taken to keep them high.0 -
And so what? If it rained jewels and precious metals from the sky we'd have better lives.
I doubt we would. I think it would be worse.
Quite painful/dangerous in a storm, I would have thought.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Ooooo, so lax lending didn't cause the crisis. Therefore the lending was affordable.
Erm no.
Just because it didn't CAUSE the crisis, it doesn't mean it was all affordable.
It's not a case that it's either "crisis" or "all fine and dandy". Theres a lot of middle ground between the two.
Why we have to spend time explaining this kind of stuff I do not know. Maybe thats another thread.0 -
Graham_Devon wrote: »Erm no.
Just because it didn't CAUSE the crisis, it doesn't mean it was all affordable.
It's not a case that it's either "crisis" or "all fine and dandy". Theres a lot of middle ground between the two.
Why we have to spend time explaining this kind of stuff I do not know. Maybe thats another thread.
Lax lending did indirectly cause the crisis. Wasn't it American mortgage debt that was being "meddled with" that started it all off ?
You can play with words all you like, but the root cause was debt.
Our banks were exposed to this "funny money", and that's largely part of why our economy is where it is now.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Graham_Devon wrote: »Erm no.
Just because it didn't CAUSE the crisis, it doesn't mean it was all affordable.
It's not a case that it's either "crisis" or "all fine and dandy". Theres a lot of middle ground between the two.
Why we have to spend time explaining this kind of stuff I do not know. Maybe thats another thread.
Graham, you're the person making unsupported assertions. At some point it would be good if you provided some evidence, particularly since you're extremely dismissive of people who do actually have the first clue about what they're talking about.0 -
What is a Chewbacca comment?
Isn't he some kind of monkey?0
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