FTSE down over 4%

shortchanged_2

Really2 wrote: »

So no problem with context here GD, just a problem with people not explaining how falling prices in general is a good thing for everyone?

The stock market is a perfect example of why it is not.

Who said it was good. People like myself are just highlighting that what the so called experts are saying is a load of guff.

Come on Really2 live up to your name and have a reality check. There is only so much spin and bulls**t that can be tossed around.

We ARE heading back into recession and people need to accept it. We are in for some very, very difficult economic times as if it wasn't going to be hard enough.

Really2

shortchanged wrote: »

Who said it was good.Are you new to the forum???;) People like myself are just highlighting that what the so called experts are saying is a load of guff.

Come on Really2 live up to your name and have a reality check. There is only so much spin and bulls**t that can be tossed around.

We ARE heading back into recession and people need to accept it. We are in for some very, very difficult economic times as if it wasn't going to be hard enough.

Glad I have been talking up the economy and house prices then? (I must of to have a reality check)

Is this where people tell us they were right all along and try to make out things I never said?

I have constantly over estimated house price falls since coming on here and have forecast since joining that we are likely to be in the !!!!!! economicaly at least until 2013-2015.

But no, it's a time of glory for some, and bashing their sandwich boards saying they were right all along.

shortchanged_2

Who said it was good.Are you new to the forum???;)


I'm not sure what you are getting at. I wasn't referring to house price falls if that's what you mean.

Graham_Devon

Really2. You are somewhat desperately trying to link what people have said about house prices to prices of any other asset.

Confusing and muddying the waters, solely to score a forum point...or at least try, but it aint going to well.

House prices being lower and what people think of that is very different to what people think about pension values being eradicated. Please don't try to link the two. Its' desperate, isn't needed and only caused confusion and argument.

No one has said falling stock markets are good for the population. (apart from the bulls who insist its goos because they are buying lower each day, but thats more group therapy that anything else).

Really2

shortchanged wrote: »

Who said it was good.Are you new to the forum???;)


I'm not sure what you are getting at. I wasn't referring to house price falls if that's what you mean.

Oh, so it is only relevent to falling house prices? (all though I seem to remember a few on here that have stated falling prices overall are good for everyone as it means things are cheaper to buy?)


Remind me again on the circumstances that usually provide house price falls and how they are good?

I seem to remember the cirumstances are virtually the same as why stock markets crash also.

shortchanged_2

Really2 wrote: »

Oh, so it is only relevent to falling house prices? (all though I seem to remember a few on here that have stated falling prices overall are good for everyone as it means things are cheaper to buy?)


Remind me again on the circumstances that usually provide house price falls and how they are good?

I seem to remember the cirumstances are virtually the same as why stock markets crash also.

Lower house prices would be good for the majority because it would mean most people would have more money to spend on other things in the economy instead of having it tied up in Bricks n Mortar.

People would have more money to go out and buy that 42" tv and new fridge freezer.

Also people might have more spare money available to invest in such things as the stock market.:)

You don't have to have high house prices and a strong stock market to have a thriving economy. A healthy housing market, rising generally in line with inflation would be good for most.

I would say a good, healthy stock market is more important to the economy than high house prices, which as they are showing now are nothing but a hinderance to economic recovery.

Really2

Graham_Devon wrote: »

Really2. You are somewhat desperately trying to link what people have said about house prices to prices of any other asset.

Confusing and muddying the waters, solely to score a forum point...or at least try, but it aint going to well.

Are you guys so blind you can't see how interlinked the two are and the reasons why the assets fall.

I had these conversations in 2007/2008.

No matter the asset falling the reason it falls is the reason we will all be worse off.

I don't own shares, so in reality using a previous logic used on this forum I would be able to buy cheaper shares.
That has been used on here in the past as an example of being a good thing.

The reason why they fell is bad for everyone, and the people who have lost out (pensions in this case) it is very bad.

So looking at it in context as the two are highly related.

Is the fall in asset values a good thing or a bad thing?

My view is that the only way you can say it is a good thing is if you hide the fact the economies are going down the pan again and that people will lose a lot on the back of me saving a bit.

Tell me how it differs rather than making out I am muddying waters?

The reasons the markets are falling are the same reason why house prices will most likely fall?

Either people or blind or ignorant to how falling prices are a "good thing", the asset does not matter, the reason the fall is generally a bad thing for all of us, and very bad for a fair few.

Really2

shortchanged wrote: »

Lower house prices would be good for the majority because it would mean most people would have more money to spend on other things in the economy instead of having it tied up in Bricks n Mortar.

Ah, the ignore the reason why they fell argument (but any proof it is better for the majority and most would have more to spend?), So this bring us back to shares.

Houses fall due to recession , increasing unemployment and a large amount of people losing money.

So in a falling environment people generally have a lot less to spend and the country has falling GDP and increasing Debt.

Sounds great.;)

shortchanged_2

Really2, a house purchase is the biggest financial commitment most people will make. If house prices are sky high, there is a resultant drop in disposable income for other things as people need to service that massive debt. How can that be a good thing for a healthy, balanced economy?

shortchanged_2

Really2 wrote: »

Ah, the ignore the reason why they fell argument (but any proof it is better for the majority and most would have more to spend?), So this bring us back to shares.

Houses fall due to recession , increasing unemployment and a large amount of people losing money.

So in a falling environment people generally have a lot less to spend and the country has falling GDP and increasing Debt.

Sounds great.;)

And actually I don't say falling house prices is good all of the time. What this country needs is for house prices to come back to a reasonable, realistically affordable level for the long term. Once they have corrected, banks need to maintain strict lending criteria to ensure that property price bubbles are avoided again. Fat chance I know as we never seem to learn from our mistakes.:)