Saturday, 22 September 2007

Chancellor calls top of housing market

The Badger successfully called the top of the credit bubble a week ago. He called for a return to responsible borrowing and lending. Two days later there was a run on the Northern Rock.

The Badger said in The Times this morning (scroll down to last paragraph):
“I take the view that the slowing of house prices and ensuring that they are based on reality is not a bad thing. It is in no one’s interests for house prices to go on rising year after year after year when that is not justified.”

Thus successfully calling the top of the housing market a week later. Expect to see a forest of 'For Sale' signs go up over the weekend.

Look chaps, I think Vince Cable is the only policitican or journo who seems to have dimly realised that there maybe is a link between NR collapse and high house prices. There's not just a link, they are TWO SIDES OF THE SAME COIN. You can't have a credit bubble without an asset price bubble and vice versa.


Dr Xavier Ray said...

"It is in no one’s interests for house prices to go on rising year after year after year"

Not quite the truth; it is very much in the Chancellors interest as more houses enter the higher Stamp Duty band and more people become caught by Inheritance Tax. Then there is the less direct benefit of rising asset values which encourage people to borrow and spend and have so far bailed out this governments reckless waste of taxpayers money.

Mark Wadsworth said...


But the Goblin King must have twigged that house prices have risen way too high and that this is all going to come to a sticky end.