Interesting Article on UK boom

[BlasterBates]

UK boom

Interesting, so basically the entire UK boom is based on house prices going up fueling house prices. Most of the new jobs generated were either in estate agents, finance companies lending mortgages, or legal companies in guess what.... housing.

So Joe Bloggs buys a house creating work for an estate agent, a banker and a lawyer, who recruit staff who buy houses so creating more work. Then those who already have a house sell their house to buy a bigger one with the profits they've made, ad infinitum....

Simple really, why bother trying to manufacture things.

[Zippy]

Indeed. I feel debt collection may be the new Plan B.

[AtW]

Indeed. I feel debt collection may be the new Plan B.

No. High Inflation that will erode all this debt (and value along the lines) is Govt's Plan B.

[Zippy]

No. High Inflation that will erode all this debt (and value along the lines) is Govt's Plan B.

Bugger! Now I need a Plan C.

[Francko]

UK boom

Interesting, so basically the entire UK boom is based on house prices going up fueling house prices. Most of the new jobs generated were either in estate agents, finance companies lending mortgages, or legal companies in guess what.... housing.

So Joe Bloggs buys a house creating work for an estate agent, a banker and a lawyer, who recruit staff who buy houses so creating more work. Then those who already have a house sell their house to buy a bigger one with the profits they've made, ad infinitum....

Simple really, why bother trying to manufacture things.

That I feel is very unfair. Ok, the house prices in UK are overvalued but yet compared to many other countries in Europe is not even the highest. Just do a quick compare of the ratio average salary to house price and you see that England is just average in Europe. So how come now England is the only country whose economic success is determined by house prices? For me it's just rubbish talking and typical UK-style doom mongering.

[AtW]

Bugger! Now I need a Plan C.

You can. Just don't take plan Z.

[sasguru]

That I feel is very unfair. Ok, the house prices in UK are overvalued but yet compared to many other countries in Europe is not even the highest. Just do a quick compare of the ratio average salary to house price and you see that England is just average in Europe. So how come now England is the only country whose economic success is determined by house prices? For me it's just rubbish talking and typical UK-style doom mongering.

'King 'Ell. You've changed your tune. In the old days you would have have agreed totally. Switzerland has obviously been an eye-opener.
You're probably right, we will talk ourselves into a recession.

[DimPrawn]

Maybe because we only have two wealth generators.

Houses and The City, which itself has been built up on debt, sub-prime and pig-in-a-poke CDO's

The rest of the world has manufacturing, commodities, and a growing service industry.

[BoredBloke]

My plan b is to invest in gold. I will source this gold using a method I saw on the telly in an old film whereby I lob a brick through a window and grab what I can. I have quite a few bricks to choose from. They are standing in my garden in this house shaped pile.

[The Master]

No. High Inflation that will erode all this debt (and value along the lines) is Govt's Plan B.

Only wage inflation does that. Retail inflation does nothing to erode debt.