I wrote a piece for the Saturday (26 January 2018) Guardian. Its been described by many as “counter-intuitive” – because in it I draw on the research of others (notably that of Ian Mulheirn – director of consulting at Oxford Economics) to argue that building more houses will not dampen house prices. I posed this question: “what has bitcoin mania got in common with house prices, especially in the capital? For starters, both are speculative bubbles. Vast sums of money have been poured into finite supplies of bitcoins and London property. Both have consequently exploded in value, albeit over different time periods. And so both have become financialised assets that deliver capital gains far in excess of people’s ability to earn income from work, or from investment in the real economy.
Topics:
Ann Pettifor considers the following as important: capital flows, Economic Orthodoxy, housing, taxation, Tobin Tax
This could be interesting, too:
NewDealdemocrat writes The bifurcation of the new vs. existing home markets continues
Angry Bear writes The economy is actually doing great — unless you want to make a change in your life.
NewDealdemocrat writes Housing construction rebounds in February, as permits and starts are stable and rebounding
NewDealdemocrat writes Repeat sales house price indexes continue to increases on par with past expansions
I wrote a piece for the Saturday (26 January 2018) Guardian. Its been described by many as “counter-intuitive” – because in it I draw on the research of others (notably that of Ian Mulheirn – director of consulting at Oxford Economics) to argue that building more houses will not dampen house prices.
I posed this question: “what has bitcoin mania got in common with house prices, especially in the capital? For starters, both are speculative bubbles. Vast sums of money have been poured into finite supplies of bitcoins and London property. Both have consequently exploded in value, albeit over different time periods. And so both have become financialised assets that deliver capital gains far in excess of people’s ability to earn income from work, or from investment in the real economy. And as with bitcoin, so with London property: speculators are convinced that prices will continue to rise for ever.”
For more, please follow this link to the Guardian’s website.