We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Addicted to the Apocalypse
Comments
-
-
Nope even us commoners are allowed to disagree with people.0
-
Gillian Tett and Will Hutton are prime examples of woeful prediction doomsayers that the fools keep falling for again and again.
I've pointed out many times that these Puritan doomsayers have always been with us and always will, despite them being wrong almost all of the time.
I saw an article which claimed there were thousands of articles going back 100 years in the New York Times predicting America was about to fall into the abyss.
Another classic doomsayer claim is we're about to all go to war for resources and that growth has a limit, which of course it does not.0 -
We disagree. Lots of people were saying from 2000 onwards that there was no problem whatsoever with the "new paradigm" of easy credit & the housing bubble it was creating. With the worst recession since the 1930s a direct result, they were proved spectacularly wrong.
This reflects the economists propensity to make linear predictions based on a current scene and for me the key reason they tend to get it wrong time and again.
They forget the importance of getting out into the real world, so glued are they to their beloved charts and stats.0 -
We disagree. Lots of people were saying from 2000 onwards that there was no problem whatsoever with the "new paradigm" of easy credit & the housing bubble it was creating. With the worst recession since the 1930s a direct result, they were proved spectacularly wrong.
Hang on a minute.....
Neither UK house prices or mortgage lending standards caused the global financial crisis.
And as this BBC article points out very clearly....
The truth about UK debt
.... UK household debt was never the problem, and increased lending wasn't the primary cause of UK house price rises.
So here we are with lending volume still 50% lower than it was at peak, but prices now just 7% below peak.
Which obviously wouldn't be the case if it was primarily a debt fuelled bubble.
And in the meantime, all those other countries that also used ZIRP, bank bailouts, help for homeowners, etc, but that had a housing surplus instead of a shortage have seen prices fall by up to 60%.
While ours dipped briefly, and are now nearly back to peak again despite tighter lending today than we have had for decades.
The only rational explanation for the above is that it was the shortage, not lending, which was the primary cause of prices rises in the UK.
And as the price rises were primarily caused by the shortage, then by definition they cannot be a bubble.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Who mentioned the UK? Lax credit was global (although the UK, as a leading financial power, played their part in it unlike what Gordon Brown would like you to believe).0
-
Who mentioned the UK? Lax credit was global (although the UK, as a leading financial power, played their part in it unlike what Gordon Brown would like you to believe).
Agreed.
Someone on the BBC (I think it was Wake up to Money on 5) pointed out that the UK was one of the most indebted nations on earth both private and public. Given interest rates much above 0.5% would bring the roof down on us, we are at best a zombie economy.0 -
It's only a major fact that's trying to be twisted.HAMISH_MCTAVISH wrote: »Hang on a minute.....
Neither UK house prices or mortgage lending standards caused the global financial crisis.
And as this BBC article points out very clearly....
The truth about UK debt
.... UK household debt was never the problem, and increased lending wasn't the primary cause of UK house price rises.
Sometimes real facts aren't even enough for some people.0 -
Who mentioned the UK?
The UK seems relevant.
Given that we live here and all.Lax credit was global
And 'lax credit', whether global or otherwise, was not the primary cause of UK house price rises.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Lots of people were saying for years that the housing bubble & insanely lax lending practices would all end in tears, and they were correct.
What.
In America?
The UK didn't have a housing bubble, nor insanely lax lending, and house prices here are almost back to peak.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards