Straw that broke the camels back?

Graham_Devon

Since the budget, it seems more and more commentators on news programmes, MPs etc have taken a slightly different stance.

Take last night for instance on This Weeks on the BBC.

We had a Financial Times journalist, ex tory MP and current labour MP and Andrew Neil the presenter all agree on and suggest the same thing....

....That house prices need to fall.

See, the problem is, most seem to be realising, maybe now their tax money is at stake, that intervention only increase prices and get's people into higher and more expensive debt in a perpetual cycle which hurts the rest of the economy.

Sky news was saying the same thing, bar someone from a business group.

So, is the announcement of massive stimulus which had some quite excited about the prospects actually be the straw that broke the camels back?

To have all four guests on This Week all state house prices need to fall up to 20% for the market to function again is quite something.

shortchanged_2

Well it's pretty obvious to most that the housing market is overvalued.

The only people that want hpi are investors and people in negative equity. To the majority of others vast house price rises are not really important.

Graham_Devon

shortchanged wrote: »

Well it's pretty obvious to most that the housing market is overvalued.

The only people that want hpi are investors and people in negative equity. To the majority of others vast house price rises are not really a factor.

The BBC has never suggested falls are needed though. Especially putting 20% figures on it.

Thrugelmir

Graham_Devon wrote: »

So, is the announcement of massive stimulus which had some quite excited about the prospects actually be the straw that broke the camels back?

Not a stimulus its life support. In order to provide an orderly retreat.

dryhat

.. and Michael Portillo, of all people, is one of them.

One of maggie's loyal foot soldiers back in the day...

http://www.bbc.co.uk/iplayer/episode/b01rhy1m/This_Week_21_03_2013/

(about 25 mins in)


All those train journeys around the country have obviously given him a lot of time to think about things.

CLAPTON

the important things is to build more properties for people to live in and enjoy life.

in addition to providing homes for real people, building more properties will provide employment for the umemployed and provide a welcome keynsian stimulous to the economy

unless the government changes the semi-secret rules about 'reasonable lending' there will be little new house building

wymondham

at last ... it's pretty obvious that houses are not worth the money being asked - maybe the people who make the policies that constantly push up the values will see this soon?

As values are so high I think they are all scared about the political fallout of negative equity, but it's unavoidable in reality, regardless of any new super duper scheme!

Graham_Devon

I couldn't quite believe what I was watching and listening to on This Week. However, it's echoed in the media, the BBC news, Sky.

Whether the populace will start listening is another matter...but at least politicians and journalists are starting to agree theres a problem and that house prices haven't fallen enough.

This latest scheme, and the magnitude of it, may actually be the best thing that's happened for those thinking house prices are overvalued. It seems to have woken people up...probably due to the size of the scheme, leading to what could be seen as desperation to prop prices up.

Never seen anything like that on the BBC. To have one influential MP saying it would have been nice. But for all to be nodding in agreement?

ukcarper

Graham_Devon wrote: »

I couldn't quite believe what I was watching and listening to on This Week. However, it's echoed in the media, the BBC news, Sky.

Whether the populace will start listening is another matter...but at least politicians and journalists are starting to agree theres a problem and that house prices haven't fallen enough.

This latest scheme, and the magnitude of it, may actually be the best thing that's happened for those thinking house prices are ovrvalued. It seems to have woken people up...probably due to the size of the scheme, leading to what could be seen as desperation to prop prices up.

Not the ones in a position to do anything about it.

What effect do you think a nominal fall of 20% would have personally I think the best way forward is real time falls perhaps with small nominal falls.

dryhat

ukcarper wrote: »

Not the ones in a position to do anything about it.

What effect do you think a nominal fall of 20% would have personally I think the best way forward is real time falls perhaps with small nominal falls.

We have gone past the point where "real" falls would work.

Only a fall in nominal prices will flush the 5h1t out of the system.

And until it happens, we ain't going anywhere.

If it had happened 5 years ago we would now be in recovery.


We are all cypriots now.

ukcarper

dryhat wrote: »

We have gone past the point where "real" falls would work.

Only a fall in nominal prices will flush the 5h1t out of the system.

And until it happens, we ain't going anywhere.

If it had happened 5 years ago we would now be in recovery.


We are all cypriots now.

Nice soundbite explain what would happen if prices suddenly fell my 20%.