Soldato
- Joined
- 24 Sep 2007
- Posts
- 5,233
The fact is that property is wildly over priced right now. Property prices have been massively pumped up to levels that are unaffordable by many working people. Property should not be an investment, it is just somewhere to live. The whole thing goes back to establishing human hierarchies and fighting over the land. Power is achieved through control of the land, and in modern societies through control of finance, and they are closely linked. I would say that the UK is far from a democratic country and has high inequality. How much does your vote actually achieve? Not very much really, as the main parties are as bad as each other, and there's also the House of Lords. Behind the scenes there are entrenched power structures that control the land and finance. Sure it sounds like I'm a bit crazy and some people here like to call me a conspiracy theorist, but I am far from it. Honestly I don't like to argue with people because it's a waste of my time, but the facts of the matter are ...
In 2008 there was a big financial crisis, referred to as the "Great Financial Crisis" at which time, if the UK was actually operating under proper capitalist principles (and we are very far from that) a lot of the banks would have gone bust, i.e. be allowed to fail, because they had made so many bad loans. They were all bailed out, and this allowed over-priced property to continue. It's the same today, many big banks in the international financial system are technically bankrupt, witness the failure of SVB and Credit Suisse, there will be more on the way in the coming months. The bailing out of banks allows property prices to remain artificially high, and this causes problems for tenants in terms of affordability, and for landlords in terms of making a return on investment. It becomes hard to make a ROI on your investment, when fundamentally your product is very overpriced for your customer. The property market is stalling and it is about to correct, so the situation will get worse, probably around July/August because that's when these things seem to happen.
Bank bailouts happen because this is the powerful looking after their own interests. Normal rules of business do not apply to banks, because it is the powerful controlling them. They aren't subject to going bankrupt when they should. This is why economic principles cannot be applied to the banking and property sectors, because the market is being manipulated. A big factor in this is money printing from thin air by the central banks and added into the system. It is not subject to audit, and not "accounted for" as such, and this is why we see big rises in the price of everything, there is huge inflation in the system, to help keep the banks in business. Things like "Help to Buy" don't help people buy houses, they help the banks control the price of houses, and keep them artificially high. Buy To Let landlords are no more than property maintainers for the banks. The UK economy has a massive banking sector, and the UK has lost a lot of its other industries, because they have been outsourced to China. The Germans would say we are making money from "cutting each others hair", i.e. we now have a finance and service economy. Being a landlord is part of this, it does not increase the wealth of the country, it just increases inequality in the country. At the end of the day being a landlord is a "wealth extraction" industry, because you are just charging someone else to exist, there are no two ways about it. Personally, even if I could afford to be a landlord, I wouldn't from a moral perspective, because I prefer not to charge people just to live, I'd rather make money in other ways. If I am being honest, I don't really feel sorry for any landlord that finds it hard to reach profitability, because property prices have been pumped ridiculously high and it's beyond a joke, it's people's lives we're talking about.
It might sound harsh but I for one would welcome a big property market correction because the average house price to average salary ratio is ridiculously high and I just don't think it's right. If the market was left to proper capitalist market dynamics and not being manipulated then property wouldn't get so overinflated. However, after the 2008 bailouts and the less obvious ones since, I don't hold my breath, because it's not proper economics being allowed to operate here, so you can expect the powerful to do everything they can to keep propping up the banks and property sector, at the expense of normal working people. As that Robert F. Kennedy Junior video I posted said, it is "Cushy socialism for the rich, and brutal merciless capitalism for the poor." The modern banking system, based on FIAT currency, and free from any accountability for currency issuance, as there is no longer a gold standard or any other effective mechanism to control currency issuance, has resulted in an unrestrained financial sector, with little accountability to the general population, and results in the huge rises in inequality we are seeing today.
In 2008 there was a big financial crisis, referred to as the "Great Financial Crisis" at which time, if the UK was actually operating under proper capitalist principles (and we are very far from that) a lot of the banks would have gone bust, i.e. be allowed to fail, because they had made so many bad loans. They were all bailed out, and this allowed over-priced property to continue. It's the same today, many big banks in the international financial system are technically bankrupt, witness the failure of SVB and Credit Suisse, there will be more on the way in the coming months. The bailing out of banks allows property prices to remain artificially high, and this causes problems for tenants in terms of affordability, and for landlords in terms of making a return on investment. It becomes hard to make a ROI on your investment, when fundamentally your product is very overpriced for your customer. The property market is stalling and it is about to correct, so the situation will get worse, probably around July/August because that's when these things seem to happen.
Bank bailouts happen because this is the powerful looking after their own interests. Normal rules of business do not apply to banks, because it is the powerful controlling them. They aren't subject to going bankrupt when they should. This is why economic principles cannot be applied to the banking and property sectors, because the market is being manipulated. A big factor in this is money printing from thin air by the central banks and added into the system. It is not subject to audit, and not "accounted for" as such, and this is why we see big rises in the price of everything, there is huge inflation in the system, to help keep the banks in business. Things like "Help to Buy" don't help people buy houses, they help the banks control the price of houses, and keep them artificially high. Buy To Let landlords are no more than property maintainers for the banks. The UK economy has a massive banking sector, and the UK has lost a lot of its other industries, because they have been outsourced to China. The Germans would say we are making money from "cutting each others hair", i.e. we now have a finance and service economy. Being a landlord is part of this, it does not increase the wealth of the country, it just increases inequality in the country. At the end of the day being a landlord is a "wealth extraction" industry, because you are just charging someone else to exist, there are no two ways about it. Personally, even if I could afford to be a landlord, I wouldn't from a moral perspective, because I prefer not to charge people just to live, I'd rather make money in other ways. If I am being honest, I don't really feel sorry for any landlord that finds it hard to reach profitability, because property prices have been pumped ridiculously high and it's beyond a joke, it's people's lives we're talking about.
It might sound harsh but I for one would welcome a big property market correction because the average house price to average salary ratio is ridiculously high and I just don't think it's right. If the market was left to proper capitalist market dynamics and not being manipulated then property wouldn't get so overinflated. However, after the 2008 bailouts and the less obvious ones since, I don't hold my breath, because it's not proper economics being allowed to operate here, so you can expect the powerful to do everything they can to keep propping up the banks and property sector, at the expense of normal working people. As that Robert F. Kennedy Junior video I posted said, it is "Cushy socialism for the rich, and brutal merciless capitalism for the poor." The modern banking system, based on FIAT currency, and free from any accountability for currency issuance, as there is no longer a gold standard or any other effective mechanism to control currency issuance, has resulted in an unrestrained financial sector, with little accountability to the general population, and results in the huge rises in inequality we are seeing today.
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