I only watched the full video after I posted. Not surprised he would have been on rt.com. Quite misleading what he was saying, mixed truth with a lot of bias. Not all hedge funds used insurance or cds to bet on the other side of the property market, only very few. The people in the audience have no clue about finance or economics whatsoever and seemed pretty dopey, just the right type to buy the book he was plugging.
Hi .. There is no real basic logic to expect the SP to reach £10 ..
The SP has hardly moved in 3 years.. Times have changed dramatically since 2008 and we have a growing change to renting and staying with parents ... The level of mortgages before 2008 compared to now is I believe is far less.. .. Lack of Affordability is the main worry on many issues now.. Including utility bills, mortgages and low incomes..
As I just posted house prices now up from 2 times ave earnings in 1970 to 7 times ave earnings now.. .. Times have moved on from Fred the shred days ... And banking rules are different as well..
£10 seems two and a half times harder than the £4 that seems so difficult to reach now... £10 may well be reached in the distant future .. But what will £10 SP be worth by then..?.. Ave House prices may well be double today's prices by then..
All a very distant thought .. Predicting £10 is all based on hope rather than reality.. Of the way things stand today.. Uncertainty is the only reality.. That is the one certainty
Yes I meant £10, and I do think the SP will reach this valuation, it is not a question of IF but WHEN in my opinion, not so long ago (2010) and pre-consoidation of course, some were talking of £1.00 by end 2010, I am not saying I agreed with then but I don't see why we would not reach that valuation a couple of years down the line.
cheers for link , I've seen this guy on rt .com on a few of there shows . certainly shows with those "very useful "charts ( seen them before ) on when it all started to change in 1971 and the acceleration as we hit the 80's and reganomics /Thatcherism . this is still whats happening , here in UK and other countries we are just waiting for that housing peak again and then a bigger crash than 2008 will hit . sometime soon imv
I don't think the sp will ever sink that low. However, if you are talking about £10 rather than £1, I would say never! and if it does, I will not only put you on the christmas card list but I will dress up as Santa and go round your house.
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