I really think that most people connected with Commercial Property, and resi as well, have lost their mojo. What we are now seeing is Que Sera Sera Economics, whereby people no longer try and determine their future in a proactive way. Instead we are following down a route of 'what will be, will be'.
The problem with this is that it leads to stagnation and the type of activity seen in Japan.
In a perverse way, we actually need the weak (markets, banks, firms etc) all to fail, people to lose their houses and have some proper economic strife. Once this happens, prices will fall and entrepreneurs will go back into the markets and balance will be restored as supply meets demand.
Let's do away with QE (only creating a commodity boom and helping banks make secret profits) and raise interest rates, so we all feel the pain. There will be a crash in prices, which will then bottom out when demand picks up.
Savings are guaranteed to £85,000. We have a welfare state. Only the gamblers and speculators will lose out, and some will win. Having this artificial market does not help anyone. History is on our side; the crashes from the recessions of the early 1980 and mid 1990 helped the economy bounce back well, each time being healthier after than before.
Take your medicine and get better. Please don't lie back and see what happens.
No comments:
Post a Comment