Indo: House price inflation is not a sign of recovery

OpEd piece by Stephen Kinsella of UL, 7th June 2014. … 36004.html

Blue Horseshoe

His conclusion :

Been saying this for years here - property prices are a derivative.

I think there might soon be an opening for a commissioning editor at the Indo. Somebody really went off the reservation asking for this. :nin

Lol. Does sound like this slipped through the net alright.
Smear campaign to follow? !!

The cynic in me says few will understand words like derivative, emphatically, perverse relationship.

So few will listen to either this or Mr A. So when the Indo keeps up the good time to buy, supply getting smaller, aka buy now or commit suicide, that they will be able to put their hands up and say, we have balance in this paper…

And fair play to you Mr A!

The advantage of derivatives is for every loser there is a winner :slight_smile:

I personally think that that is a seriously flawed argument, for example just try fitting that statement to the price of food or fuel. You would end up with a tin of beans costing €1.50 in South Dublin and 40c in the back end of Roscommon.

It’s logic like this that has made Ireland such an expensive place to live.


No. Sorry. Tins of beans are not fungible. It’s Heinz or Cross & Blackwell. Period.
Yellow pack soup works fine. But not beans. Soup is fungible. Beans are not. And it’s not just about taste here. We’re talking poorer fart quality too.

Have you tested the brands … and scaled them for ‘inflation’ 1 to 5?

Soup* is not fungible, but it is liquid.

  • ok, maybe Irish “soup of the day” is fungible, given that it’s always that homogenous starchy yellowish gunk.

Even Superbull Charlie Weston is changing his tune… What happened to his “No Bubble Without Cheap Freely Available Credit” line??? … 36652.html

Must have been reading the pin. :slight_smile:

The Sindo has counteracted the piece with numerous other bullish articles including Jim Power claiming that the Dublin price surge is showing no signs of abating… He got it badly wrong in 2007-2008 so he has very little credibility left

And this sticks out to me the most …


That’s the whole identi-kit of an unsustainable increase.
Slow to materialise … but materialise it eventually does !

Prices rise as stock tries to catch up with demand, but once it does … well … see 2006 onwards.

I suggested recently that the recent “concern” might be related to some of the major and longer term MNC’s telling the government that they have a bottom line to keep and having their staff demanding 10% pay increases to keep up with increases in the cost of accommodation will not be entertained.

I would say that it also has a lot to do with the Sindo starting to realise that only additional supply of houses will fill their glossy property supplement and move INM’s financials back into the black

Feck me but the SIndo have gone super max + on Property today

We have the Jim Power ‘happy clappy’ piece on rising prices … 36654.html

We also have a puff piece by a Sarah McCabe … 36650.html

As usual, Charley has something to say…and surprisingly it’s not all rosy … 36652.html

And finally, Richard Curran hurrahing David Hall and saying it’s about time the banks started writing off debt … 36656.html

I had a lovely day.

I didn’t look at any newspapers.

It’s always darkest before the dawn