Blog
Telling it like it is
7th August 2008
This 27 year old from Essex hits the nail on the head when discussing the problems facing first time buyers in the housing market - a lucid and spot on description of the impact that the housing bubble has had on housing affordability, and effective demand for people willing to save for a sizeable deposit.
The government has been reverting to type this week by floating a series of possible palliative interventions for the housing market - centred around reductions in or holidays on paying stamp duty. Why cannot they just realise that house prices need to fall? The market had become dangerously over-priced and creation a money-for-nothing illusion of wealth that contibuted heavily to the credit crunch. Let prices fall, let the market adjust - stop pretending that poorly thought-out and rushed government intervention can make a difference.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.