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Debate House Prices
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House price falls would be excellent for the economy
Comments
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HAMISH_MCTAVISH wrote: »Young people in Ireland aren't happy they can buy cheap housing, they're queing up at the borders to get the hell out. Anywhere.... for the crappiest of jobs.... Just so long as it's not the wreck of an economy that the house price crash has left Ireland in.
And I'm sure that young people in Ireland were "lovin' it" when thay had massive HPI and the credit was flowing like water. Maybe they were. Maybe they didn't see HPI as a problem, as long as the banks kept lending. What they couldn't do is work out that it wasn't going to last very long.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »But there's the catch. House price falls destroyed the wealth locally... People no longer had the confidence to invest, and the economic decline spiralled out of control. Just as is happening in Ireland today.
And there's the bit that you repeatedly ignore. People (busineses) don't invest because of house prices (unless they are speculating on property), they invest in areas for many other reasons.
So what's the answer Hamish ? Should there be some measures to prevent house prices falling in Ireland ? Will that fix their economy ? They had measures which inflated their house prices, and that didn't end well, did it ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
And there's the bit that you repeatedly ignore. People (busineses) don't invest because of house prices (unless they are speculating on property), they invest in areas for many other reasons.
You really don't get it do you?
Housing is a major part of GDP in all developed nations. Between 12% and 18% from memory depending on country.
NO ECONOMY can withstand a house price crash and just continue along as if everything is just fine.
House price crashes inevitably crash the wider economy. And things go to !!!!!! for everyone.So what's the answer Hamish ?
Stop the negative feedback loop.Should there be some measures to prevent house prices falling in Ireland ? Will that fix their economy ?
Yes and yes.
In fact, it's the ONLY thing that will.
They're going to have to bulldoze the third of a million empty houses, and they'll see no recovery until they do.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Yes, Hamish, it doesn't matter about any other part of the economy, it's all about house prices, isn't it ? House prices - the tail that wags the dog.
House prices and the wider economy are utterly interlinked.
You can't have a healthy economy without a healthy housing market, and vice versa.
No matter what the economic problem, crashing house prices will only make it worse.
They take down the banks, reduce consumer confidence, reduce spending, which leads to business contraction, which leads to higher unemployment, which leads to further house price falls, and the process repeats.
Are you seriously too thick to get that?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »NO ECONOMY can withstand a house price crash and just continue along as if everything is just fine.
House price crashes inevitably crash the wider economy. And things go to !!!!!! for everyone.
No economy can withstand a big part of it's industry (say car manufacturing) going down the pan, and continue along if everything is just fine.
Detroit's motor industry collapse couldn't be "fixed" by pumping money into it's property market.
Try and think beyond property, and think about what pays for it. That's what I do, and that's why I do "get it".
You really think that the answer to Ireland's current problem is to pump money into it's property market ? :rotfl:30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »Are you seriously too thick to get that?
Here we go. See what I mean ? The insults have started. Hamish thinks I'm "thick", because I am trying to participate in a reasoned debate. I don't think the points I have made are those of someone who is "thick". Unless, that is, the definition of "thick" is someone who actually dares to argue against the points Hamish makes.
I'll end it now. (Cue - "Derv's gone now, that proves he knew he'd lost the argument, and he is thick")30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Here we go. See what I mean ? The insults have started. Hamish thinks I'm "thick", because I am trying to participate in a reasoned debate. I don't think the points I have made are those of someone who is "thick". Unless, that is, the definition of "thick" is someone who actually dares to argue against the points Hamish makes.
The FACTS are indisputable. There is no opinion here.
Crashing house prices are horrifically bad news for any economy.
It's like trying to explain to a 2 year old that the sky is blue, and then they ask "but what if it were green".... "it might be green one day"....
Absolutely pointless.
And on that basis, I'm off.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »The FACTS are indisputable. There is no opinion here.
Actually, I believe there is. It's why you are getting quite annoyed with it, and starting the insults.
Completely ignored my question
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You really think that the answer to Ireland's current problem is to pump money into it's property market ? :rotfl:
Of course not.
The answer to Ireland's current problem is to bulldoze the surplus housing.
Only then will house prices stop falling, the banks stop needing ongoing bailouts, and the economy be able to recover.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »You really don't get it do you?
Actually some of the bears might say that you just don't get it :cool:HAMISH_MCTAVISH wrote: »Housing is a major part of GDP in all developed nations. Between 12% and 18% from memory depending on country.
Got any statistics for Germany? Seems that they missed a property boom...0
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