26
Sep
Cleansing the system
For those of us that have been round for a while we will take some
comfort from looking back at our experiences to know that sooner or
later history will, and always does, repeat itself. Whether
depression or recession economies have been resilient and after
time bounced back. Yes this time the entire basis of a change in
climate is distinctly different but, and granted at the moment it
seems a very big but, the cycle of change will occur again soon.
Recently I heard the use of the expression ‘cleansing’,
rather different in context to that of the more commonly used term
correction. It was put to me that our global financial system was
now in need of a thorough overhaul ridding us of the germs and
viruses that have freely infiltrated the system, be it individuals,
corporate entities or governments. We are now hosing down and
stripping out this overloaded infrastructure which should leave us
with a far more ‘pure’ system. I think he has a very
good point, and at the end of the day it is long overdue despite
the pain that we have to endure in the process. As for the housing
market a better balance of supply and demand will emerge, the price
rungs will be closer together as a consequence each move becomes
more affordable, mortgage monies will be more strategically
distributed, house builders will keep the construction programmes
in check to supply more low cost and local authority housing, less
multiple ownership culminating in a smaller difference between the
high’s and the low’s in terms of time and frequency.
This must be the long term gain from the short term pain. In the
meantime for all those would be bargain hunters, there are many
correctly and appropriately priced properties available with
motivated buyers and sellers.