Re: The end is nigh

Roger Burton West <roger+asr200706@xxxxxxxxxxxxxxxxxxxx> writes:

Dan Holdsworth wrote:

A similar thing is happening in the UK.

The population of the UK is not increasing at any great rate. Why is
there suddenly a "housing crisis"?

Because housing prices have completely left behind any relationship to
earnings or savings. Instead they're now only linked to cheap credit,
purchased on the percieved promise of massive future house price
inflation. It's a completely fscked up speculative bubble in other
words.

All but those on massive incomes can no longer enter the housing market
in the UK anymore unless a) They already own property they can
remortgage b) They know someone who is willing to give them cheap money
by remortgaging their own home (Bank of Mum and Dad) c) lying to the
bank.

Of course, as interest rates go up c) are screwed and the bank sells
their house cheap a) can't increase the rent to cover the mortgage and
are screwed and have to sell a house cheap and b) well - b) may be able
to keep going for, perhaps, a generation - but their kids will be
screwed.

But the collapse of a) and c) should be enough to make the sheeple wake
up and realise that, no, house price inflation at %10 per annum is not
sustainable.

Anyone want to buy a tulip?

Dave
--
millibrachiate tentacular coelenterates
.

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