The housing bubble and copying

Posted by on Oct 9, 2008 in Uncategorized | 2 Comments

For+sale+signs+2

Easy (and pleasurable) though it is to kick the bankers and the politicians who loosened the regulatory framework, it's not like you and I get off scott free.

Like other aspects of the current financial situation, the UK's housing bubble is partly (at least) the result of us copying each other ("self-certified-buy-to-let-better-than-any-pension-safe-as-houses etc")

Nice piece by John Gapper here in the FT that explains this

Hat tip Tom

2 Comments

  1. Justin
    October 9, 2008

    Another characteristic in the housing bubble that is all too familiar is the suspension of logic at all costs… People bought houses that aren’t really that nice to live in and most of all lots of people bought houses they couldn’t pay for, all this little financial implosion has done is rumble them and just like everyone else right now, they can blame it all on another herd doing what they do.
    On a broader note, this whole bout of global amoebic dysentry could almost be the plot for a Whoops Apocalypse sequel.
    I’m with Sir Mortimer Chris on it all, The pixie are what done it!

  2. Britt Raybould
    October 9, 2008

    We went from people bragging about the performance of their favorite sports team to comparing how much the value of their homes increased. The housing market become a competition, another way for us to one up each other, proving yet again that no matter how old we get, we’re still susceptible to playground taunts of, “I’m bigger/better/richer than you.” Many couldn’t resist the temptation to up their ante despite the risk.