If you don’t like capitalist gloating, skip this post.
House prices still rising. I’ll do some graphs on this some time. Hell, here’s one: it was part of a dialogue with a friend a year ago, where I was arguing in favour of buying massively the Spreadfair Housing Futures, because surely house prices could not fall as far as the market was predicting without some radical monetary action:
I was right. Maybe a bit lucky, but right. The market stabilized this year. I was long loads of Dec09 and Dec10 houses at a price of 130-140, which now looks like settling at 162-170 – my best bet ever. Sorry, but it doesn’t happen often. I think the high level of house prices in this country is a real problem, but my small bets do nothing to exacerbate them. And what were those people thinking, selling at a 20% discount? Jeez.
Housing wealth in unequally distributed in this country. The effects of QE and a lack of supply has boosted the wealth of the top half/top third. Here is my estimate:
This ought to be spelled out more. Has QE rescued the economy? It has certainly rescued the wealth of a segment of our society.