THREAD: I decided to do a small thread on the UK housing ‘market’ because too many are totally oblivious to its machinations. So here it is. Please share. @HousePriceMania @Renegade_Inc @maxkeiser @PlanetPonzi @UkPropertyLion

A very popular belief over here is that supply and demand dictates the dynamics of the housing market. This is only true to some extent. The real driver of this dynamic are interest rates. Why? https://www.independent.co.uk/news/business/news/uk-house-prices-rise-interest-rates-mortgages-bank-of-england-a9258196.html

1) When rates are high, house prices are low. 2) When rates are low, house prices are high. Instinctively, people would say that ok, if 1) is true then we have lower demand and higher supply, and in 2) higher demand and lower supply. This is also only partially correct.

What they miss in the equation is human psychology of investors. Market participants chase returns. When 1) is the market environment, it disincentivises investors (i.e. speculators, gamblers aka Buy-to-Let or ‘investors’) because there’s not much return.

Therefore, a healthy market is in place. But when 2) is in the place, speculators are given huge incentive to play the price increases. As rates go lower and lower, prices go higher and higher, and more speculators come in. In the meantime, bankers create a new range of products

to profit from. Voila, a casino is born. This dynamic works well for them, but terrible for the average person. Once this crowd takes charge of the casino, they have massive skin in the game to manipulate the supply and demand dynamic, for example to keep rates low and prices

high so the casino doesn’t implode. If they want to profit more or maintain the status quo, they can perpetuate fairytales such as supply is low to boost prices even higher (but fact is supply has been outpacing household formation in the UK for decades).

p. 10 https://housingevidence.ac.uk/wp-content/uploads/2019/08/20190820b-CaCHE-Housing-Supply-FINAL.pdf They also control the levers of information and the lackeys under them (unwitting estate agents, brokers, etc.) who propagate these lies to the broad masses. This dynamic created the US/UK housing bubble from 2003-2008, and the current bubble since

the status quo hasn’t been erased, but maintained and grotesquely blown higher. It’s a house of cards that will implode, as all Ponzi schemes eventually do.

The first inkling of the total collapse was in 2008. If the course of nature would have been left to its devices, the casino would have completely collapsed as rates spiked higher. But because the speculators wanted to maintain the status quo, their casino was given a new

lifeline. As rates are now hoovering at 0, the question is how they will keep the casino moving? I belief we have reached the end of this status quo, and will see the total annihilation of the casino and the speculators whose ‘wealth’ is tied to it.