[Gllug] VACANCY: Junior Systems Support

[John G Walker]

On Thu, 10 Sep 2009 10:43:01 +0100 Hari Sekhon
<hpsekhon at googlemail.com> wrote:

> People have been tricked in to thinking that being in debt is ok

So you think that mortgages are a scam and that people should,
presumably, rent until they've saved up the price of a house? How does
this fit with your previous statements opposing social housing? Or do
you imagine that the private sector can provide enough rents?

Have you thought this through? If you're going to post irrelevant stuff
to the list, could you at least be a bit more concrete than you have
been so far?

> (this has only helped to push house prices up as well as people get
> more and more used to taking out huge mortgages just for somewhere
> stable to live)

Changes in the money supply obviously do have an effect on house
prices. For example, the housing price boom of the late 1980s was due
to Nigel Lawson's increase of the money supply in response to the 1987
stock market crash. And the negative equity crisis of the early 1990s
was due to the fall in the money supply resulting from the recession.

But there are a large number of other factors for rising house prices,
not least being the fall in the number of households living in social
housing (which you appear to think is a rise). One of the most
important in the south-east of England, which may partially go away, is,
of course the growth in the number of people employed in London in the
financial sector. Inflated house prices have led to inflated salaries
being paid in this sector which, in turn, has inflated house prices,
and so on.

Of course, the recession has reduced house prices, which in turn has
led to problems of negative equity and so forth (though not, I think, on
the scale of the early 1990s).

You wouldn't think, from what you wrote, that any of this has permeated
your consciousness,

-- 
 All the best,
 John
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