Speculation and public money underpinning housing bubble

sensibly_insane

CLAPTON wrote: »

If you mean BTL then those properties are let out for ordinary people to live in just like council or housing associations owned properties.

Do you despise these people renting and only admire owner occupiers?

Not at all, I don't despise these people renting but a race of buying these properties to make money from these people who can't buy for any reason does not result well. At the very least, it hypes up the property prices which knocks off the genuine buyer from the market who wants to buy a house to live in and not for making easy money. One answer could affordable public rental schemes where the only inhabitants are not the people on benefits. Let me clarify, I don't mean communes here

sensibly_insane

chewmylegoff wrote: »

What league? Are you suggesting that the Chinese people are richer than the UK because they have a trade surplus? You might want to tell their general population as they will be surprised to learn that they are richer than their equivalents in the UK - they might want to know where all their wealth is hidden though.

Present current account balance is not a very good measure of the wealth of a country.

I agree economy is not all about this but this is one of the very important factors. Does it mean the negative account balance is a good measure of the wealth of a country. Why do you think Germany is in a stronger position in Europe to bail out others in Europe. Do we want to be the ones able to bail out others or do we want to be the ones bailed out.

chewmylegoff

sensibly_insane wrote: »

I agree economy is not all about this but this is one of the very important factors. Does it mean the negative account balance is a good measure of the wealth of a country. Why do you think Germany is in a stronger position in Europe to bail out others in Europe. Do we want to be the ones able to bail out others or do we want to be the ones bailed out.

Germany is in a position where it has to bail out the other members of its currency bloc. We are not in that currency bloc. This is not really a positive for Germany (as they have to borrow money and pay interest on it and then give it all to other countries so they can continue to buy its goods) but I admire your attempts to turn it into one. The German ministry of propaganda will be on the phone offering you a job if you keep this up.

sensibly_insane

chewmylegoff wrote: »

Germany is in a position where it has to bail out the other members of its currency bloc. We are not in that currency bloc. This is not really a positive for Germany (as they have to borrow money and pay interest on it and then give it all to other countries so they can continue to buy its goods) but I admire your attempts to turn it into one. The German ministry of propaganda will be on the phone offering you a job if you keep this up.

Thanks for painting me with that brush. I was expecting that to be honest as this usually happens when the arguments dry up. Still, I hope we have left enough food for thought for the ones who bother to think.

Personally, I would like my country to be able to be on the giving end and to be the Industrial giant it used to be once. I don't think it is wrong to think along those lines. We are off the topic.

Point is that public money is being used to perform some useless cosmetic surgery which will simply backfire in the face of the ones who funded it in the first place. History has proved that money cannot be created from thin air it has to be earned through hard labour. What amazes me is that we are still not out of the effects of the last economic crisis and the government has managed to push us in the same mess again.

CLAPTON

sensibly_insane wrote: »

Not at all, I don't despise these people renting but a race of buying these properties to make money from these people who can't buy for any reason does not result well. At the very least, it hypes up the property prices which knocks off the genuine buyer from the market who wants to buy a house to live in and not for making easy money. One answer could affordable public rental schemes where the only inhabitants are not the people on benefits. Let me clarify, I don't mean communes here

complete nonsense

another troll

sensibly_insane

CLAPTON wrote: »

complete nonsense

another troll

Your response shows that you don't have a valid argument against what I suggested. I am interested to know what exactly you don't like and why?

chewmylegoff

sensibly_insane wrote: »

Thanks for painting me with that brush. I was expecting that to be honest as this usually happens when the arguments dry up. Still, I hope we have left enough food for thought for the ones who bother to think.

Personally, I would like my country to be able to be on the giving end and to be the Industrial giant it used to be once. I don't think it is wrong to think along those lines. We are off the topic.

Point is that public money is being used to perform some useless cosmetic surgery which will simply backfire in the face of the ones who funded it in the first place. History has proved that money cannot be created from thin air it has to be earned through hard labour. What amazes me is that we are still not out of the effects of the last economic crisis and the government has managed to push us in the same mess again.

Your response shows that you don't have a valid argument against what I suggested.

cepheus

Home ownership: how the property dream turned into a nightmare

In this exclusive extract from his book, The Default Line, the economics editor for Channel 4 News traces the origins of the housing bubble and argues that we're condemning a whole generation to paying absurd prices for what is a basic human need – and it doesn't have to be this way

Housing is the only basic human need for which rapid price rises are met with celebration rather than protest. The house trap stretches from the estate agents mediating house-selling, to the provision of mortgages to buyers, the supply of mortgage finance to the banks and building societies, the construction of house-price indices, the skewing of finance away from owner-occupiers towards landlords, the supply and construction. Homes were always castles, not just in England, but also across Europe and the US. But during the madness they evolved into cash machines, surrogate pensions, principal pensions, and even livelihoods. And in many places, this is still the case..............

The housing market is driven principally by the availability of finance, mainly mortgage debt, but sometimes bonuses, inheritances, or hot money from abroad....

thor

CLAPTON wrote: »

miss use of the term ponzi


how do you suggest reducing the price of property?
building more, reducing infrastructure charges and stop imposing the cost of subsidising social housing on buyers of new build?

How about increasing interest rates from their record low, stop punishing savers and helping banker's profits with the funding for lending giveaway and end the help to buy scheme. Then the artificial house price increases we are experiencing will be stopped dead and reversed a long way. Of course it won't happen as politicians own a multiple number of houses.
Yes some banks will collapse due to having to repossess too many worthless properties but hey I thought we were living in a capitalist economy?