Britain stuck with high inflation, meagre growth..

[Robinho]

It's nothing to do with the ideas. Humans will always attempt to seek profit from situations.

[RasputinDude]

The price of houses went up and down because in the 1970s most people didn't have this strange idea of houses as a means to generate income or as an 'investment'; they saw them as boxes to live in.

What MtT said.

I am just buying a new house - upgrading as it were. I am *not* buying an investment or my future retirement fund, I am buying a home; somewhere for my family to live and grow up in. I don't care how much I will get when I eventually sell it - the money paid out every month is just part of the rolled up cost of living.

The idea of a house as an investment seems absurd to me.

[Sysman]

The price of houses went up and down because in the 1970s most people didn't have this strange idea of houses as a means to generate income or as an 'investment'; they saw them as boxes to live in.

I found a nice little cottage for 5K but got persuaded by my parents to go for a new house at more than twice that. Well I suppose my parents came from the generation who had grown up in old properties and wanted new and shiny. They were also suckered in their own way into buying new; someone had to buy all those houses thrown up in post war Britain.

I would have been much happier in that cottage - it had nice views and was in a leafy area, for a start.

Guess which house was worth more by 1985 once MIRAS had kicked in and building societies became more willing to lend on old properties?

[Scoobos]

It's nothing to do with the ideas. Humans will always attempt to seek profit from situations.

lol, "humans"... not at all generalistic.

[Sysman]

No because i wasn't alive. However, did the price of houses plummet because coffee was more expensive?

What have the prices of houses to do with it?

[Mich the Tester]

What have the prices of houses to do with it?

Everything to do with his theory that under current conditions, wise people borrow money and spend it on houses, while stupid people put their money in savings.

[Scoobos]

However absurd it may be to us , it seems to be the majority view now.

I thought we'd already done the "Loadsamoney" generation and seen the results.

[Robinho]

Everything to do with his theory that under current conditions, wise people borrow money and spend it on houses, while stupid people put their money in savings.

Well, it's true.

[EternalOptimist]

However absurd it may be to us , it seems to be the majority view now.

I thought we'd already done the "Loadsamoney" generation and seen the results.

we have progressed from 'Thatchers Babes' now we appear to have a generation that thinks having a few gold sovereigns under the pillow, loads of debt but no house is the height of fiscal wisdom, whilst having everything bought and paid for is foolish and stupid

i sort of understand what the victorians were getting at when they said that children should be seen and not heard

[Sysman]

Everything to do with his theory that under current conditions, wise people borrow money and spend it on houses, while stupid people put their money in savings.

Oh. I see.

I don't really understand Robinhomics.