Observer Leader

Eh?

Not all Britons are homeowners, of course, and a decrease in the value of assets does not have to mean a decline in wealth, as long as incomes are stable.

Anyone want to explain that piece of gobbledegook?

Erm wealth is the value of net assets. If those values fall then yes, wealth does indeed decrease.

They\’re right that it doesn\’t matter all that much about house prices, as long as incomes do indeed hold up, but the penultimate clause in that sentence is nonsense.

 

(Willem Buiter and others do make the point that housing isn\’t in fact net wealth at all but that\’s a different piscine water boiler.)

5 thoughts on “Observer Leader”

  1. Tim, any comments on Richard North’s blog? He claims Farage is weakening his position on the EU. It didn’t sound like it to me. Are there any changes of policy in the offing?

  2. Your being obtuse.

    Not all Britons are homeowners, of course, and a decrease in the value of assets [house prices] does not have to mean a decline in wealth [for non-homeowners], as long as incomes [for non-homeowners] are stable.

    Words in brackets are unnecessary for those not looking to nit-pick and carp. The meaning is perfectly clear without them.

  3. “The meaning is perfectly clear without them.” No it bloody isn’t. That was shamefully bad writing for what was once a decent rag.

  4. “Your being obtuse.”

    If we’re getting kicks by nit-picking about nit-pickers, then can I add my two cents by pointing out that “you’re” and “your” are two entirely different words with entirely different meanings? I-ron-eee!

  5. BlacquesJacquesShellacqes

    “Erm wealth is the value of net assets”

    No, no a thousand times no.

    Wealth is the thing – the house, the land, the jewel, the pack of smokes, the hot dog. A 3000 square foot home is just as comfortable if you ‘value’ it at $1M or at .25M. A hot dog tastes just as good if it costs $1.50 or $5.00.

    Which is why I distrust many measures of the goodness or badness of an economy. There is too much you economist types don’t take into account. I am old enough to have lived as an adult through three boom bust cycles. I have sometimes in some ways been more comfortable financially during the busts.

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