State of the UK housing market - Doom level: ATW raises eyebrow

[scooterscot]

He thinks a correction of 10% is about right. He said having a 40% is highly unlikely as the banks are still lending at good rates...

After the rapid increase in house price during the 1920's they crashed 70% post 1929. Just because the correction seems extreme doesn't mean it can't happen. The similarities to the present are striking, stagnant wage growth in the face of strong economic growth, record low (recorded) unemployment, rapid house price increases, low interest rates until they started to rise and rise and then boom!

[shaunbhoy]

The similarities to the present are striking, stagnant wage growth in the face of strong economic growth

Shirley the "B" word will scupper the strong economic growth? At least that is what you and your dullard mates keep spouting.

Make your tiny mind up FFS!

[scooterscot]

The 'D' has already scuppered economic growth yet the masses don't see it. Record low unemployment yet the Debt levels continue to spiral out of control. If debt cannot be paid back at record low unemployment levels you should already know the economy is up the creek without a paddle.

[GJABS]

After the rapid increase in house price during the 1920's they crashed 70% post 1929.

In the 1920's, both the UK and US currencies were on the gold standard, meaning central banks were unable to (legitimately) create more currency.
Nowadays both currencies are FIAT currencies, and narrow money can be created by central banks at will.
This means that yes house prices might crash in the same way as they did in the 1929 crash, but that it is possible that central banks/governments might start printing again (like they did during quantitative easing 10 years ago), thereby reducing the value of the currency as house prices drop, leaving the nominal drop much less significant.

[BR14]

WGAF? - rent. be flexible FFS - what wunch of bankers

[scooterscot]

In the 1920's, both the UK and US currencies were on the gold standard, meaning central banks were unable to (legitimately) create more currency.
Nowadays both currencies are FIAT currencies, and narrow money can be created by central banks at will.
This means that yes house prices might crash in the same way as they did in the 1929 crash, but that it is possible that central banks/governments might start printing again (like they did during quantitative easing 10 years ago), thereby reducing the value of the currency as house prices drop, leaving the nominal drop much less significant.

Fantastic description as to why FIAT money is doomed. A return to the gold standard or some other form of money not open to manipulation is inevitable at this point.

[AtW]

Gold will lead to deflation, total DOOM but much quicker.

The only really viable solution is another World War or man made global disaster like pulling a large meteor using tractir beam...

[TwoWolves]

I think house prices will correct (a little) in the near-term but not spectacularly. It's clear now that the elite will destroy the currency to buy more time so plan for hyperinflation. Probably even just bail-in ordinary citizens too.

[WTFH]

There’s nothing wrong with the housing market. Ask the boss of Persimmon about his £75million bonus.

[DimPrawn]

There’s nothing wrong with the housing market. Ask the boss of Persimmon about his £75million bonus.

Thus proving the Tories spending public money propping up the housing market works.

HTB scheme, or Helpful Tory Bonus as the giant property developer companies call it...