Saturday, August 18, 2007

Economic Fundamentals: Garrulous GuF From Guido




Another day it seems, another half arsed economics story from Guido. The twisted chart at the top is literally distorted but purports to show a massive rise in residential repossessions. In fact it shows a fairly modest rise in residential repossessions. From about 270,000 five years ago to about 280,000 one year ago. This is around a 4% change. And I think there may be a gag behind this. Involving speculating rentiers losing their shirts in an over egged buy to let market.

I've humbly requested that Mr GuF finds out how many repossessions are plural as MY co-conspirators tell me that there are quite a lot of small but rather dim property investment companies going down.

As Mr Marx might say: "Ahhh, bless. Poor little rentiers. Some unearned losses now after all those unearned profits."

Clearly the underlying issue of repossessions is very real and very serious for those concerned. But clumsily or deliberately twisting a chart, starting it just after the worst ravages of the Tory years, and presenting a c 4% variation from the modal figure of the last 10 years as an "explosion" is really yet another GuF "Lurch to the Crap".

The not exactly twisted chart beneath it is already superceded by events. This supposedly shows 10% off the "value" of everything as measured by some responsible gamblers aka fund managers and institutions, and beyond these some speculating tossers who talk up scares - on their blogs and the like - manipulate the responsible ones, often bound by sensible, cautious rules, bet on their predictable behaviour, and then make 10% on their money in 30 days as predictably enough the FTSE does this:


Always remember; the value of blogs may go down as well as up. As Dizzy says, shares-wise the story is clearly BUY BUY BUY. And as LOL says, blog-wise Mr GuF has been struggling to keep his head above water after a series of serious reversals on his "nap" stories. Back to the nappies mate. They can be full of it too.

1 comment:

Economist said...

If the Government's economic policies are working shouldn't the number of reposessions be coming down? Instead they are going up.

What does that tell you, Chris? Perhaps the Brown Bubble is about to burst? Not good news for you Labour wonks is it? Well, what can you do?

Spin, spin, spin and more spin I guess. "Tories suggest reducing tax levels = LURCH TO THE RIGHT"

You've got to do better than this.