Thursday, October 07, 2010
Beautiful illustration
The people know facts, the experts spread lies.
I've never seen a more perfect illustration than this short article in the Telegraph, followed by its comments.
In the article, four or five Experts uniformly wail and whine about the fall in housing prices. All of them want a return to the crazy situation that caused the crash:
In the comments, two dozen People make a variety of points from several perspectives, and nearly all of them get it right. The best one so far:
Especially good point about mortgages tying up money that would otherwise be saved or spent on more productive purposes. ¶ 5:54 AM
I've never seen a more perfect illustration than this short article in the Telegraph, followed by its comments.
In the article, four or five Experts uniformly wail and whine about the fall in housing prices. All of them want a return to the crazy situation that caused the crash:
And Paul Diggle, property economist at Capital Economics, said: “The hefty drop in the Halifax measure of house prices adds weight to the view that house price weakness is far from over. To our minds, weak housing market activity indicators mean that further falls in house prices are likely.”
“There is no doubt that this will reduce the amount of equity in people’s homes, making it even harder to remortgage.”
In the comments, two dozen People make a variety of points from several perspectives, and nearly all of them get it right. The best one so far:
This is the truth - only it doesn't make good headlines; it ought to be; housing market returning to sanity after years of greed took over people's senses.
If you bought in 2007-8 you may need your head examined.
Otherwise, relax, stay where you are. Nothing has changed.
For people of the future; smile, things just got a bit easier.
Things can't be allowed to get like they were (average mortgage 8 times the average salary) - how are people supposed to live?
High mortgages = the economy goes up sh1t creek very quickly - why? Because people are spending so much of their disposable income on a pointlessly high mortgage they can afford little else. When mortgage prices are lower, people spread their money around and the whole economy benefits. What's not to like? I hope house prices go even lower to correct this short term greed and insanity.
Especially good point about mortgages tying up money that would otherwise be saved or spent on more productive purposes. ¶ 5:54 AM
