The fun times ahead

[OwlHoot]

I'd agree with this, but not for the reason you say below ....


The government doesn't want a housing crash because the value of property is what makes the general populace feel 'wealthy'. When we feel wealthy we are more inclined to spend money which in turn keeps the economy moving forward. ...

It isn't just the feel-good factor. A lot of pension funds are invested up to the neck in property, although mostly commercial I think.

[DimPrawn]

It isn't just the feel-good factor. A lot of pension funds are invested up to the neck in property, although mostly commercial I think.

Not my pension funds. Zero exposure to commercial property. I put mine into money markets before the covid sell-off when the first cases were identified in Europe towards the end of Jan.

[scooterscot]

The market is going to continue to appreciate? Is that the consensus here? Fascinating...

There's lots of mounting evidence the opposite will happen as banks continue to restrict lending while they prepare their defences for a slurry of bankruptcies. Even after a stock market crash you've still got the disaster that is Brexit for dessert.

Oh you lucky bas£$d.

[Whorty]

The market is going to continue to appreciate? Is that the consensus here? Fascinating...

There's lots of mounting evidence the opposite will happen as banks continue to restrict lending while they prepare their defences for a slurry of bankruptcies. Even after a stock market crash you've still got the disaster that is Brexit for dessert.

Oh you lucky bas£$d.

You must have a very sad life if all you see around you is the negative. You sound like the life and soul of the party

[DimPrawn]

You must have a very sad life if all you see around you is the negative. You sound like the life and soul of the party

Doom sells as they say. There's so many ebooks, youtube channels, news letters etc all around the premise of stock market crashes, dollar collapse, property price collapse, commodity price collapse, you name it.

People buy into this mindset. I was guilty of this mindset after the 2008 crash and missed out on 10 years of bull run in the US stock market.

Now I'm never tied to any mindset, but adjust my view day to day. I've applied this to trading and it's proving profitable.

[Whorty]

It isn't just the feel-good factor. A lot of pension funds are invested up to the neck in property, although mostly commercial I think.

The feel good factor is not everything, but losing this would be a hammer blow. If we still feel wealthy, even if it's only on paper, helps to prop up spending.

As for pension funds, this is commercial property linked to high streets and office blocks. Currently there is a stop on the sale of these in pension funds as the find managers are struggling to value commercial property.

So yes, they are linked albeit indirectly.

But, to go back to what I said previously, the government needs us to feel good so that we continue to waste our money of tat from the high street.

What's interesting though is those on here wanting a house crash so that they can get on the ladder won't be able to as lending costs will increase and hence the affordability of owning property will rise accordingly.

The graph below shows that whilst UK property prices are high, the affordability was way lower in 2015 compared to it's recent high of 2007. This graph is from 2015 and I can't find a more recent one but the housing market hasn't moved that much in the last 5 years so it's probably a good indicator.

[scooterscot]

You must have a very sad life if all you see around you is the negative. You sound like the life and soul of the party

Okay - Take the Trump approach and tell the masses "It's just the flu, it'll be gone in a couple of months"

Don't hate the messenger, hate the game.

[scooterscot]

Doom sells as they say. There's so many ebooks, youtube channels, news letters etc all around the premise of stock market crashes, dollar collapse, property price collapse, commodity price collapse, you name it.

People buy into this mindset. I was guilty of this mindset after the 2008 crash and missed out on 10 years of bull run in the US stock market.

Now I'm never tied to any mindset, but adjust my view day to day. I've applied this to trading and it's proving profitable.

Trends are not established day-to-day. The pickle the world is now in is a continuation of the massive failure of Western governments of not acting in 2007. Instead they poured petrol on the fire and created more debt.

Banging on for years - DEBT is the problem. The locals will be along shortly though, they'll argue the wonders of debt and how it's good for us.

[DimPrawn]

Banging on for years - DEBT is the problem. The locals will be along shortly though, they'll argue the wonders of debt and how it's good for us.

Haven't you just. And where has it got you?

[Whorty]

Trends are not established day-to-day. The pickle the world is now in is a continuation of the massive failure of Western governments of not acting in 2007. Instead they poured petrol on the fire and created more debt.

Banging on for years - DEBT is the problem. The locals will be along shortly though, they'll argue the wonders of debt and how it's good for us.

If that's a little dig at me, best you know I have zero debt and have had zero debt since I cleared my mortgage back in 2009.