Debate House Prices


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New government bonds.are going to help or..??

The Bank of England is poised to launch a new lending programme for UK banks in an effort to break the logjam in the credit market, the BBC has learned.

http://news.bbc.co.uk/1/hi/business/7351073.stm

Is this going to help the economy? or will it be worse? still prices of property are going to be down? who will really pay all of this?

Comments

  • luvpump
    luvpump Posts: 1,621 Forumite
    Part of the Furniture Combo Breaker
    It may help a few more labour MP's to keep there jobs & make no mistake actions of this nature are as much about politics as the economy..
    As far as property is concerned these measures may delay the inevitable, the bottom line being that property is vastly over-priced (including my own) & simply have to come down to a more sustainable level in the long term... period.. so the level of decline may be arrested somewhat but the end result will be the same ...
  • any other oppinion??
  • any other oppinion? or everybody pretty much agree with LUVPUMP
  • snarffie
    snarffie Posts: 450 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Whilst I agree that house prices need to stagnate/drop, I would prefer not to see an out-and-out crash. This would bring prices artificially low (overshooting the bottom) in the same way that the boom has made prices artificially high.

    If the government's proposal can blunt the 'crash', then that may be a preferable scenario. Whether that can be achieved is another thing.

    An interesting article by the FT suggests why a crash might not be such a good thing...(from another thread)

    http://www.ft.com/cms/s/0/b70b6886-0c09-11dd-9840-0000779fd2ac.html?nclick_check=1
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