Telling it like it is

This 27 year old from Essex hits the nail on the head when discussing the problems facing first time buyers in the housing market - a lucid and spot on description of the impact that the housing bubble has had on housing affordability, and effective demand for people willing to save for a sizeable deposit.

The government has been reverting to type this week by floating a series of possible palliative interventions for the housing market - centred around reductions in or holidays on paying stamp duty. Why cannot they just realise that house prices need to fall? The market had become dangerously over-priced and creation a money-for-nothing illusion of wealth that contibuted heavily to the credit crunch. Let prices fall, let the market adjust - stop pretending that poorly thought-out and rushed government intervention can make a difference.

Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Unit 1 Micro: Empty Housing and Economic Efficiency [15 Dec 2011]
Behavioural Economics: Herd Behaviour [28 Nov 2011]
Unit 2 Macro: Income and Wealth in the UK [12 Sep 2011]
UK Macro: Risks of a Double Dip Recession [12 Sep 2011]
Starter Video: The Slums of Manilla [11 Sep 2011]
Unit 1 Micro: FirstBuy, Affordability and Effective Demand in Property [10 Jul 2011]
Chinese inward investment in the London property market [12 Jun 2011]
Development Econ: Wealth and Inequality in China [10 Jun 2011]
A2 Macro: Consumer Spending [30 May 2011]
AS Macro: Extended House Price Deflation? [5 May 2011]
AS Micro: Importance of Elasticity of Supply [23 Apr 2011]
AS Macro Key Term: Bubble [4 Apr 2011]
Timetric: Mortgage Lending and Mortgage Rates [14 Mar 2011]
Combining monetary and fiscal policy to curb inflation in China [16 Feb 2011]
David Smith on Shifting Sands in the Global Economy [8 Feb 2011]
Economics Q&A: Will the rise in VAT harm the UK’s economic performance? [17 Jan 2011]
Extend and Enrich with EconoMax [29 Oct 2010]
Beware the return of the Gazunderer [16 Oct 2010]
Video resources on consumption and saving [7 Oct 2010]
Data Mining on Global Poverty [14 Sep 2010]
Housing market and negative equity [31 Aug 2010]
AS Micro: Effective demand for after school activities [29 Aug 2010]
Reasons to fear a jobless recovery [11 Aug 2010]
Consumer sentiment weakens as double dip looms [2 Aug 2010]
China’s housing market - fantastic interactive resource [7 Jun 2010]
Housing and the British Economy [5 Jun 2010]
AS Macro Revision: Consumer Borrowing [30 May 2010]
Euro Land and Optimal Currency Areas - A Valentine’s Day Massacre [29 May 2010]
Warnings of hysteresis for the EU economy [29 May 2010]
Two examples of government failure [20 May 2010]
UK inflation hits 17-month high [18 May 2010]
RES Essay Competition: Preventing Housing Bubbles [12 Apr 2010]
Paris punishes the purse strings [12 Mar 2010]
Carlos Slim - Monopoly and a Licence to Print Money [12 Mar 2010]
Assorted Links (27 Jan 2010): Focus on poverty and inequality [27 Jan 2010]
50-year decline in housing affordability [20 Jan 2010]
New figures show extent of wealth inequality in the UK [11 Dec 2009]
Gloomy summary [13 Oct 2009]
The Wealth Effect [12 Sep 2009]
Marx and the labour theory of value [7 Sep 2009]
What happens when the hose pipe is turned off? [23 Aug 2009]
Consumer Spending and Saving in the UK Economy [18 Aug 2009]
Tentative signs of a pulse in the housing market [30 Jul 2009]
Economics Snapshot - EU Migrants in the UK Labour Market [26 Jul 2009]
Housing the global economic crisis [23 Jul 2009]
Status races - PTA school fete wars hot up [27 Jun 2009]
Revision - External Shocks [24 May 2009]
Revision: Deflation in Residential and Commercial Property [14 May 2009]
Policy Failure - Rising Inequality [10 May 2009]
After the storm [3 May 2009]
Revision presentation - UK Housing Market 2009 [25 Mar 2009]
Bubble Behaviour [22 Mar 2009]
Homeowners step away from equity loans [1 Jan 2009]
Trends in UK Income Inequality [17 Dec 2008]
Barclays Boss says housing downturn is only half done [16 Dec 2008]
Buyers desert the property market - with good reason [30 Oct 2008]
Negative equity - why is it a problem? [20 Oct 2008]
Hedge trimming [15 Oct 2008]
Housing - a buyers market [27 Sep 2008]
Housing market activity - some interesting data [26 Sep 2008]
Rock fall was symptom of wider malaise [13 Sep 2008]
Investing the proceeds of the oil bonanza [8 Sep 2008]
Shaking foundations [26 Aug 2008]
Out of pocket? Students face much higher inflation. [21 Aug 2008]
Sharp fall in London property “asking prices” [18 Aug 2008]
Business with a social face [13 Aug 2008]
Winners and losers from the housing crash [11 Aug 2008]
Unjust rewards? [4 Aug 2008]
Cheap flights - elasticity and effective demand [28 Jul 2008]
Moscow coffee had better be good! [24 Jul 2008]
Bricomortis [21 Jul 2008]
Poverty Trap worsens [18 Jul 2008]
15 Charts on the UK Economy to Kickstart Lessons in September 08 [14 Jul 2008]
The Great Depression? [11 Jul 2008]
Housing slump and negative multiplier effects [11 Jul 2008]
UK house prices down 2% in June [10 Jul 2008]
The Cracks are Widening [6 Jul 2008]
Economics board games [17 Jun 2008]
Migration and the UK housing market [3 Jun 2008]
Back to the 1990s [29 May 2008]
Lower house prices and the route to happiness [26 May 2008]
House prices down, rents up [20 May 2008]
Growing demand for social housing [19 May 2008]
Mervyn faces the Music [14 May 2008]
Elegy for Estate Agents [11 May 2008]
Property - then and now [9 May 2008]
Brazil’s widening wealth gap [28 Apr 2008]
Labour’s failure on inequality [28 Apr 2008]
Developments in the housing market [27 Apr 2008]
The social curse of the property boom [19 Apr 2008]
Sub prime risks for the UK [19 Apr 2008]
Economic Resilience? [9 Apr 2008]
Chart of the Day: Falling UK House Prices [8 Apr 2008]
More to life than GDP? [8 Apr 2008]
A bubble waiting to be pricked [7 Apr 2008]
Chart of the Day: Construction Sector Confidence [6 Apr 2008]
Exiting Mortgages - Subnormal Profits [3 Apr 2008]
US Recession Watch: Hold onto your Hats! [27 Mar 2008]
Bhutan and Gross National Happiness [26 Mar 2008]

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