Why house inflation is good?

avantra

Why is that house price inflation is consider a good thing (+) and general inflation is bad (-) ?
I know this is a very basic question but I am not very smart when it comes to our economy and that is what I read in the papers in the last month and this is my impression.
I don't ever remember an industry going to the wall and the gov falling over itself to save it, 20 years ago we fought to keep some good industries open but the gov did nothing like they do today, or is it that the banks are so important now days?

Bogof_Babe

19 views an no replies. Obviously an extremely good question.

Any economists out there?

Markyt

It makes people think they have money and encourages spending on the economy. People see it as an increasing asset, rather than a liability.

m00m00

hpi is considered good, because basically people are stupid and greedy and think in the short term

lethal0r

because most people think they are making money from their house being worth more. but in reality most people are not making money, as every other house is also worth more. the playing field is the same, just at higher prices. they only make money if they sell at the top, then buy back at the bottom, which only a few will do.

Bogof_Babe

lethal0r wrote: »

because most people think they are making money from their house being worth more. but in reality most people are not making money, as every other house is also worth more. the playing field is the same, just at higher prices. they only make money if they sell at the top, then buy back at the bottom, which only a few will do.

Given the unarguable truth in this, why does the government react as if it was a matter of national catastrophe when prices start to fall?

I don't get it .

SquatNow

Because a small number of incredibly rich people become slightly richer as a result.

With each boom and bust, land speculators buy at the bottom and sell at the top, and tripple their money while impoverishing society.

They are multi-multi-multi-multi-billionaires.

They are NOT on the "official" rich list as if they were people would start to ask questions, like why are they so rich while everyone else is so poor.

Politicians do what these land speculators say as they are the ones who pay for their election campaignes, and who, eventually, will allow the politicians to retire in luxury. Tony Blair now gets given £5m a year for working as an "advisor" one day a month. It's not "pay", it's his "payoff" for allowing land speculators to financially rape the british population for 10 years. It blatently obviously... no-one pays someone with no business skill £5m to be an "Advisor".

Mortgage debts in the UK are absolutely massive. The ultimate question that needs to be asked:
Where did all the money go?

The Answer is: Into the pockets of Billionaire Land Speculators.

And they will be back in 5 years at the bottom of the crash, using their ill-gotten gains to buy up swathes of the UK housing/building land like they did last time, ready for the british government to begin ramping house prices again.

BiggaThanBen

not many people own an oil platform to benefit from general inflation (somewhere in Emirates they probably celebrate each time when oil price rises but do not pay much attention to house prices)