From: "Jane Tweedynn" 
Newsgroups: uk.finance
Subject: Re: House prices could crash
Date: Fri, 30 Jul 2004 14:14:57 +0100


> Looks to me like the Bank of England Monetary Committee are going to
> "make" house prices stop rising and, if their interest rate rises dont
> make it happen quickly, they will continue panicking to the point where
> prices will crash.
>

I know most people despise government intervention in markets but I can't
disagree if it is their policy to prevent house prices spiralling out of
control.  Quite a few people will get burned with prices at this level, but
the effects could be a lot worse.  Japan springs to mind and their asset
inflation, not that we know what will happen.  Obviously if house prices did
crash not all people would be losers, but you can't help but have sympathy
with the current first time buyers and the mortgage and risk they are taking
on just to live the dream of living as a family, owning their home.

Any of you who detest government intervention in markets disagree with other
than selfish reasons.