The Blame Game: Who made prices insane?

the blame game

  • Developers
  • Greedy Sellers
  • Estate Agents
  • Builders
  • Speculative Investors
  • Politicians
  • Mortgage Brokers
  • Buyers
  • Leading Economists
  • Lazy Journalism
  • All of the Above
  • Other

0 voters

I’d like to know peoples sentiments on who made prices go insane to the point where it has become unaffordable for people to buy a home:

was it developers? Politicians not planning development well? was it people selling who were greedy about prices, was it speculators, buiders?

cast your vote

if you chose ‘other’ be sure to state who the other is

Edit: Green Bear: I edited this to include more there is enough blame to go around

Edit: TUG: As 2pack pointed out, the “Leading Economists” option was missing!!!

How simplistic.

Mortgagebroker you’d do well to do some digging round the 'pin, plenty of topics give an erudite analysis of the many factors that contributed to the bubble.

Interesting that you now quote prices as “insane”, interesting turnaround on your blog from a year back…

I’d say mortgagebrokers had a big hand in this for my tuppence worth! :stuck_out_tongue:

You need to add an option for all or the above, because the answer to your your poll is everyone.

Read this excerpt from A Short History of Financial Euphoria by John Kenneth Galbraith.

If he’s cute, he’ll come back and say it was a trick question and the answer for “other” was everyone!!! :laughing:

Oh well, at least it beats who’s to blame for the falling market, which was last year’s menu!

We’ve talked ourselves into recession lads… :unamused:

Austin and his krew are ALL Missing from that List . Why ???

Well. None of it was possible except for the shitty government and the banks. All the rest were incidentals.

unwelcome guest: i don’t always get it right, if you say you ready something i wrote a year ago and it contradicts what i say today you could well be right!

Anybody who claims to be right all the time is either a liar or they were nailed to a cross at some point in the past.

Agents and brokers are just the shovelers of shit.
It was the Banks that got together in Switzerland and decided that they were the masters of their own destiny, they could assess risk on their own, evaluate their exposure without regulation and lend as much money as they wanted to anyone who’d take it. And on the seventh day they patted each other on the back and puffed on a cigar the size of Cuba.
Now they’re not even talking to each other.

The foundation of the housing bubble started back in 1963 with the planning act (Neil Blaney & CJ Haughey) , this established an artificial monopoly on land that could be developed, thus leading to land hoarding and provided incentives that contributed to the corruption of the politics at all levels in Ireland. The entire housing bubble in Ireland rests on this, the cheap credit just pushed it into orbit.

I was thinking banks. Irish people seem to borrow as much as the bank will lend them to buy a home (even lying about loans, income etc).
If the money wasn’t made so readily available by the banks prices couldn’t be gone as stupid as have. No one would be able to pay the silly prices.
But I suppose banks are there to make money for their shareholders and do so by offering as much lending as possible so it goes to lack of adequate regulation by a government headed by a guy who didn’t have a bank account while minister for finance and can’t even demonstrate that he’s been paying his taxes. So it’s government.

And who elected, re-elected and re-re-elected that government?

40% of the total ballot of the electorate that turned out on those occasions… So let’s say, 25% of the Irish people above 18??? And boggers… Don’t forget boggers… :blush:

Alan Greenspan should be an option

Osama? :laughing:

People who were faced with the alternative of Enda Kenny :smiley:

MortgageBroker,

Have you ever been presented with a person trying to buy a house at an “Insane” price? To use your words.

Someone who was stretching to the very limit of what they could afford (perhaps beyond it).

Someone who could have lived much more comfortably and much more cheaply by renting for a while and building up some savings, instead of scrounging money from Credit Unions and Parents to try and keep it off the Balance Sheet.

Have you ever told this person that although they could technically get the mortgage, you felt they shouldn’t do it, and explained to them that they should rent for a while longer?

If you haven’t, then you and people like you are the ones that contributed to house prices reaching insane levels.

There’s no mystery here.

-Rd

Ahh the blame game.

This article/blog was written back in September 2006.
irvinehousingblog.com/2007/0 … -commodity
It is, in my opinion, the best article you can possibly read about a property boom and bust.

The writer displays superb foresight, simply by looking back.
Some snippets (and remember this was written back in Sept 2006 for the US market):

‘There are technical reasons for a market crash (foreclosures, credit tightening, etc.)’
This was before anyone had heard of the phrases ‘credit crunch’ or ‘subprime mortgages’

'most people who are bullish already own the asset, but for prices to continue to rise, there must be more buying. For buying to occur, someone who was either bearish or ignorant of the rally must be convinced to buy. In other words, a greater fool must be found. (Remember the National Association of Realtors $40M add campaign?) ’
What did I read about Tom Parlon and an advertising campaign ?

When prices first drop and the market enters the denial stage, the individual market participants feel confusion and attempt to avoid the truth. This is motivated by fear they may have been wrong to purchase when they did, and they might lose money. They seek ways to quell these fears through drinking even more kool aid. Bulls in the denial stage will not come to a blog like this one because we will not feed their denial. Some will stop by, try to convince us we are wrong, and move on. The only person they are really trying to convince is themselves.
Yea, we can all list a few of these.

But these quotes do not do the whole analysis justice.
It is essential reading and answers many of the questions raised by a property fall.

Its the Sheeple’s Fault.
You can blame anyone you like, but at the end of the day no one held a gun to the head of individuals (couple’s) who committed financial suicide by
signing on the bottom line for 40 years of debt slavery.
FFS there were people paying **Half a million Euros for a 2 bed Shit box **that they expected to be worth €600,000 in a year’s time.
These are the same people that are going to lash out and blame everyone but themselves.

I blame people too, though having said that I’m not absolving builders, banks etc. If people hadn’t been prepared to pay silly money for mediocre property, prices wouldn’t have kept rising the way they did. All you have to do is look at what’s happening now. Prices are falling because there aren’t so many people out there willing to buy at current prices.