The role of the media in the recession

[Ari]

Eric Mc said:

The thread title is not saying that the media CAUSED the downturn. It is questionning the way in which it reports it.

My response was to this:

Frankeh said:

Everyone was just offering 15-20% under asking on houses just because the papers said it was bad times. My dad was trying to sell his house at the time and he never got an offer that wasn't instantly way way under asking.

Had the media not reported so heavily on the problems I genuinely think everything would have been fine.

Seems some people really do think that the media are the cause of the recession and its inevitable impact on once astronomical house prices.

[ukwill]

thinfourth2 said:

Daily Wail = Its the end of world and we are all going to be completely broke in 6 months time due to immigrants
The sun = Its the end of world and we are all going to be completely broke in 6 months time due to a lack of big tits
The Express = Its the end of world and we are all going to be completely broke in 6 months time due to diana
The BBC = Its the end of world and we are all going to be completely broke in 6 months time due to the tory party
Sky news = Its the end of world and we are all going to be completely broke in 6 months time due to the labour party


Every single one of them constantly tells us we are all heading towards finical ruin and be totally jobless

So how much does this constant doom mongering depress the economy?

You forgot...

The Guardian = It's the end of the world and The Poor(tm) are going to suffer far worse as a consequence.

[fid]

oyster said:

fid said:

Eric Mc said:

You may be correct - but just because the economy is depressed doesn't mean you have to be.

But should I be? Is a short, sharp period of depression what's needed? I think it is - just long enough to set everything to where it should be if we hadn't had a sustained period of low interest rates - re-adjust peoples' expectations.

What will be, will be...despite the media.

Stop pussyfooting around and say what you want.

A nice cheap house at other's expsnse.

A realistically priced house and a sensible increase in value y-o-y, that's what everybody should want, unless you're in the business of selling houses.

[1point7bar]

Economists and politicians see statistics wherein people are homogenised into column headings on a page. They then enact their economic theories for whatever reasons.
Are we not all individuals?
Alot of people buy the Sun and equally so the FT.
Both sets of readers are 'consumers' in economic theory, but they don't make the same use of capital.
The term 'the press' generalises in the same wrong manner.
Good information can help and equally rabble rousing nonsense detract.

[Ozzie Osmond]

fid said:

realistically priced house

How are you going to define what price is realistic?

Why not have electricity and gas and fuel prices fixed by the government at an affordable level so everyone knows where they are?

And nationalise the railways?

And bring back British Leyland Austin MG Rover Triumph?

[Bing o]

Ozzie Osmond said:

How are you going to define what price is realistic?

Why not have electricity and gas and fuel prices fixed by the government at an affordable level so everyone knows where they are?

And nationalise the railways?

And bring back British Leyland Austin MG Rover Triumph?

Should it not be the job of the government to ensure that the economy is not impacted by rapidly rising asset prices, adn all the long term negative pain that it inevitably causes? Why not have a target for the average house price to be 3/4 times average salary and keep to that?

Likewise, should the governemnt not ensure that power generation is secured, and prices alligned to inflation/wage increases?

Making stty cars however is not the governments remit.

[1point7bar]

Can non-residents purchase real estate in your utopia?

[AJS-]

Bing o said:

Should it not be the job of the government to ensure that the economy is not impacted by rapidly rising asset prices, adn all the long term negative pain that it inevitably causes? Why not have a target for the average house price to be 3/4 times average salary and keep to that?

Likewise, should the governemnt not ensure that power generation is secured, and prices alligned to inflation/wage increases?

Making stty cars however is not the governments remit.

Agree with your final point.

Price controls tend not to work though. A lot of US cities had rent controls, and most have now scrapped them, as I understand it. At the very time more investment is needed to build more housing the rent ceiling is hit and no one wants to build more houses because there is no return.

The only other way would be "quantitative easing" of houses - ie building a lot more them. But as with cars the government's record as a house builder is not exactly glittering.

Same applies to power - just when you would want people to invest in new power stations or upgrading old ones, the price controls act to make sure the returns aren't there.


The housing problem is brought about entirely by the planning laws in my view.

Power generation obviously needs more power stations, but they are essentially a political project anyway.

Let the market at it

[roachcoach]

Whilst the media may or may not have contributed (perhaps scholars in later years can write a paper on it to 'decide')...they could certainly be more helpful than they are at the moment.

[Bing o]

AJS- said:

Let the market at it

Because there was never an issue with rampant house price inflation and all the associated issues that caused?

[AJS-]

Bing o said:

AJS- said:

Let the market at it

Because there was never an issue with rampant house price inflation and all the associated issues that caused?

What before the 1909 Housing and Town Planning act?

There will always be spikes in demand in hotspots, and that will always push prices beyond the reach of some. But in countries with more sensible laws the extremes are generally far less destructive than in the UK, in my view.

[Bluebarge]

roachcoach said:

Whilst the media may or may not have contributed (perhaps scholars in later years can write a paper on it to 'decide')...they could certainly be more helpful than they are at the moment.

To whom? People who are trying to sell assets for more than they are worth?

[roachcoach]

The recession is just a teeny bit bigger than the price of houses.