Lost shoe © fintag

News comments:
So where do you go next? Rates are nearly zero, the Bank of England has artificially pushed yields down by buying corporate debt and domestic asset prices (the one you all love to go on about - residential property) are starting to collapse in line with the US. (telegraph)

Next we have a Coalition who cannot spend anymore so are stopping its people spending via tax rises, encouraging illegitimacy and gagging the media by pumping it with misleading "we said this but meant this" sort of rhetoric so loved by Gordon Brown and his lost minions.

But back onto my favorite topic. Housing. A day of joy for residential prices are falling big time. Whilst many made a capital gains tax free packet through flipping and trading housing stock, the vast majority of people whose only pensionable asset is their home are seeing it fall Irish style. I don't own any assets in the UK and I have good reason not too. I told you 3 years ago to get out for the reasons that are coming to fruition. The UK is in a bad place. It is dark and the playbox has been locked.

High residential property doesn't equate to wealth. It ties up wealth. It excludes those born 10 years too late. It restricts movement of labour.

Prediction? 10% down by end of year and next 25%. Why? Mortgages hard to come by and interest rates being forced up; people needing cash (no pensions, unemployment, sudden realization that housing is a gamble) and downsizing.

Upshot? No more dull people banging on about location, smeg toilets and flock wallpaper. Here is an equation:

Dullness of a country = f(property prices)