Is it just me

The government just announced massive cuts.

Everyone I speak to is worried about their economic future.

 

Yet

The FTSE is going up

and sellers of houses decided it was clever to raise asking prices last month.

 

Er

Sorry.

makes no sense to me

 

Of course the FTSE is beling led upwards by banks - who have been given the green light to commit usury on ordinary working people by borrowing from the Bank of England at 0.5% and lending to you and me at 20%.

Mind you thats because  the government owns so many banks it wants a return on its forced investment

 

but house prices?

seriously?

Comments

[bozo's antagonist]

House prices are not going up. Houses are not selling. People with houses can't bring themselves to sell for the market clearing price. They still think their house is worth the 2008 price. There are eight houses for sale on my street - has been for months. They would all sell, at a price. Just not the price the seller thinks they're worth.

No one understands the economy - it's too complex and full of crazy human psychology. Who, in say 1990, would have predicted two gulf wars, an internet bubble, 9/11, a housing bubble, credit default swaps, the rise of Simon Cowell, gold at $1300, oil at $140, that the FTSE 100 would be the same level in 1999 and 2009, and that a footballer would be paid £250k per week? The economy will do what it will do, with little help from you, me or George Osborne. Don't try and rationalise the economy. It's too hard, and if you predict anything correctly you are just lucky.