The Economist: The bursting of the global housing bubble is only halfway through

Road_Hog

What a load of twaddle from a magazine that purports to be a financial expert.

"Based on the average of the two measures, home prices are overvalued by about 25% or more in Australia, Belgium, Canada, France, New Zealand, Britain,"

The value of something is based on what someone is prepared to pay for or someone is willing to sell for. That is simple economics.

neverdespairgirl

RenovationMan wrote: »

I must admit that when a source is spectacularly wrong I struggle to give further credance to other stories.

What's that saying.. "Fool me once, shame on you. Fool me twice, shame on me"?

It's a bit like that Jonathan Davis fellow; predicting crashes every year since 2001, then being hailed as the new messiah once the prediction finally comes true. It's hard to be unsceptical about anything spoken by the human equivalent of a stopped clock.

Are you seriously saying that you don't take anything seriously from the Economist, ever? Because of one mistake 13 years ago?

They owned up, and said they got it completely wrong. Refreshing, that.

DervProf

Road_Hog wrote: »

The value of something is based on what someone is prepared to pay for or someone is willing to sell for. That is simple economics.

I believe that in the case of houses, the value is based more on what someone is able to borrow. Yes, eventually the price is paid, but it's the cost and availability of credit that has a big influence in the value of property, and the decisions of prospective buyers/vendors.

Aberdeenangarse

neverdespairgirl wrote: »

Are you seriously saying that you don't take anything seriously from the Economist, ever? Because of one mistake 13 years ago?

They owned up, and said they got it completely wrong. Refreshing, that.

I doubt you'll get many on hear admitting they made a mistake!

Flight2quality

geneer wrote: »

http://www.economist.com/node/21540231

I would agree. We are looking at a 50% real terms crash in property. We are around half way though. But we will not see the bottom until interest rates are back to more normal levels.

Generali

Aberdeenangarse wrote: »

I doubt you'll get many on hear admitting they made a mistake!

I will if I do. Not that it's likely.

geneer

RenovationMan wrote: »

I must admit that when a source is spectacularly wrong I struggle to give further credance to other stories.

What's that saying.. "Fool me once, shame on you. Fool me twice, shame on me"?

:rotfl::rotfl::rotfl:And on that basis you write off everything ever printed by The Economist. Genius.

RenovationMan wrote: »

It's a bit like that Jonathan Davis fellow; predicting crashes every year since 2001, then being hailed as the new messiah once the prediction finally comes true. It's hard to be unsceptical about anything spoken by the human equivalent of a stopped clock.

I don't particularly agree with JDs post crash announcements.
But , given that 99% of everyone else were claiming house prices would not crash, who exactly are your go to guys then.

Wookster

Graham_Devon wrote: »

Spose we only have the Dorset Oracle and the Express left now!

You forgot the Aberdeen Herald, that much vaunted reliable source of information on property prices.

purch

This is a discussion board not a reading forum

That is usually the problem.

Too much discussion, very little reading (and comprehending) :eek:

Conrad

6th form economics.

Those 2 measures are only part of the picture.
I'm finding more and more folk are turning to B2L rather than cash or those city spiv packaged investments where the general anti - Banker sentiment is undermining the whole packaged investment sector.

Ok it's only anectodal, but then so were the tales of WW1 tommies on the front line that it turned out had far better info than the Generals.