House prices are going to go up - unfortunatly

B_Blank

I am a bear. I want house prices to go down. But QE2 is obviously coming and that will do what QE did and boost asset prices in the UK (espicially house prices). This sucks.

This would be a horribly irresponsible policy from the BoE

ess0two

Get buying now Blank old boy,you dont wanna miss out.

robmatic

B_Blank wrote: »

I am a bear. I want house prices to go down. But QE2 is obviously coming and that will do what QE did and boost asset prices in the UK (espicially house prices). This sucks.

This would be a horribly irresponsible policy from the BoE

You are not a 'bear' if you think house prices will rise.

B_Blank

ess0two wrote: »

Get buying now Blank old boy,you dont wanna miss out.

I am going to hang on anyway and hope I am wrong. I feel betrayed by the BoE and the government.

Graham_Devon

Any rises on the back of QE are just extending the problem. It's more artificial influence. So it might push prices up, for a short period, but just means they have further to fall, as it will also push inflation etc up, so we will all be getting poorer just as house prices increase.

Really2

Graham_Devon wrote: »

Any rises on the back of QE are just extending the problem. It's more artificial influence. So it might push prices up, for a short period, but just means they have further to fall, as it will also push inflation etc up, so we will all be getting poorer just as house prices increase.

If it worked we would all get paid more and IR rates would rise. See wage spiral. chances are if it worked they would fall in real terms but rise nominally. See 70s.

TruckerT

Really2 wrote: »

If it worked we would all get paid more and IR rates would rise. See wage spiral. chances are if it worked they would fall in real terms but rise nominally. See 70s.

I can't really follow your shorthand, but I am interested in your references to 1970s/wage spirals - I have posted on this before - currently there is no relationship between price rises and wage rises, and I'm sure that an economic expert will be able to tell us whether or not that has ever happened before

TruckerT

Really2

TruckerT wrote: »

I can't really follow your shorthand, but I am interested in your references to 1970s/wage spirals - I have posted on this before - currently there is no relationship between price rises and wage rises, and I'm sure that an economic expert will be able to tell us whether or not that has ever happened before

TruckerT

Using pad/tablet so to much hastle to type to much.

currently inflation is not being caused by too much money chasing to little goods. So when one of things drop out (tax, oil price normality, crop failures last year etc.) the idea is inflation should fall fast as people have less to spend.

TruckerT

Really2 wrote: »

Using pad so to much hastle to type to much.

currently inflation is not being caused by too much money chasing to little goods. So when one of things drop out (tax, oil price normality, crop failures last year etc.) the idea is inflation should fall fast as people have less to spend.

So do you agree with me that 'inflation' should be a measure of the inter-relationship between wages and prices, rather than simply another word for price rises?

Beware, nobody else on this forum agrees with me...

TruckerT

B_Blank

Graham_Devon wrote: »

Any rises on the back of QE are just extending the problem. It's more artificial influence. So it might push prices up, for a short period, but just means they have further to fall, as it will also push inflation etc up, so we will all be getting poorer just as house prices increase.

Yup. Still sucks though graham. When you are tired of waiting.

nearlynew

Price rises do not cause inflation and do not happen as a matter of course.

They are a symptom of the policies of lying thieves.


Inflation is theft. Pure and simple.