Corbyn - I don't get it

jpfamps

stickyfiddle said:

Been thinking more since my last post. On the housing/cost of living thing I'd REALLY like to see some estimates on the impact of a house price drop of say, 10%, 15% and 20%, in terms of how that would benefit the cost of living against how many people it would hurt in terms of negative equity and/or bankruptcy.

Well I think we may find out soon......

One of the reasons, in my opinion, that the recovery from the last recession has been modest is that it wasn't accompanied by a substantial drop in house prices, unlike say the early 90s recession, or the US in the 2008 credit crunch.

Essentially an unproductive part of the economy is sucking money out of the productive part.

stickyfiddle

jpfamps said:

stickyfiddle said:

Been thinking more since my last post. On the housing/cost of living thing I'd REALLY like to see some estimates on the impact of a house price drop of say, 10%, 15% and 20%, in terms of how that would benefit the cost of living against how many people it would hurt in terms of negative equity and/or bankruptcy.

Well I think we may find out soon......

One of the reasons, in my opinion, that the recovery from the last recession has been modest is that it wasn't accompanied by a substantial drop in house prices, unlike say the early 90s recession, or the US in the 2008 credit crunch.

Essentially an unproductive part of the economy is sucking money out of the productive part.

Mark Carney has given a couple of carefully worded warnings suggesting he's seeing it coming-out doesn't want to scare the markets and cause a crash in the first place. I've been waiting for it since the US fell over tbh. Everything that's been done since has kicked the can down the road but it can't go on forever.

ICBM

Probably the best option for the most people is for prices to level off more or less indefinitely, and be slowly eroded by inflation. How that can be managed without active regulation is going to be a difficult balancing trick, and even if it can it will take decades before it's really effective.

ICBM

I've also got to say that if I saw this

http://ichef.bbci.co.uk/news/624/cpsprodpb/72A6/production/_90405392_9a825e5b-fc01-4d28-a02b-df2df3a1fa5a.jpg

My first instinct would be to vote for Corbyn.

It's like she hasn't learned anything from why none of the other three candidates came close to beating him last time.

jpfamps

ICBM said:

It's like she hasn't learned anything from why none of the other three candidates came close to beating him last time.

Or why she came 4th in the Deputy Leadership contest............

jpfamps

ICBM said:

How that can be managed without active regulation is going to be a difficult balancing trick, and even if it can it will take decades before it's really effective.

You are of course making the assumption that a) the market can be controlled, and b) there will eventually be some inflation.

hungrymark

The more I read about Corbyn the more unpleasant he seems:

https://thegerasites.wordpress.com/2016/07/14/labour-leadership-1-the-immorality-of-corbynism/

Evilmags

jpfamps said:

ICBM said:

How that can be managed without active regulation is going to be a difficult balancing trick, and even if it can it will take decades before it's really effective.

You are of course making the assumption that a) the market can be controlled, and b) there will eventually be some inflation.

A) It can't. Their are always huge, unintended consequences with every intervention. 

at current interest rates inflation is pretty much going to happen. The economy is still full of bubbles. 

Whenever average house prices have been at around 4.5x average salary they have fallen.  

Chalky

hungrymark said:

The more I read about Corbyn the more unpleasant he seems:

https://thegerasites.wordpress.com/2016/07/14/labour-leadership-1-the-immorality-of-corbynism/

hungrymark said:

The more I read about Corbyn the more unpleasant he seems:

https://thegerasites.wordpress.com/2016/07/14/labour-leadership-1-the-immorality-of-corbynism/

At least he's not going batty like Sturgeon, who thinks that after the UK leaves the EU, Scotland can stay in the UK and in the EU.
.