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Old 25.01.2016, 15:22
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amogles amogles is offline
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Re: Do you believe in Merkel?

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What you and your people had to go through was terrible. Sadly, such disruption was also inevitable. To paraphrase an economist: When something can't go on forever, it won't. Such is the situation we live in now (although less dramatic and concentrated in one point in time), where the generation just before us has been able to cash in on generous pensions and the appreciation of their homes. None of that cash and equity will be waiting for us upon our retirements (at least in the US and most of the West - maybe the UK will be different somehow).
In the UK I think the appreciation of real estate is going to continue simply because with net positive immigration there are more people competing for limited real estate.

This is tough on young people and first time buyers but benefits those who are on the ladder. This is the strange thing about the UK. Jobs can go out of the window and lots of bad things happen to the economy but people are still getting richer because their houses are appreciating and people are getting rich by doing nothing. At some point of course too many people will be priced out of the market and something will have to give, but we're not there yet and probably won't be for at least another generation.

Germany on the other hand hasn't seen much real estate appreciation. People's homes aren't part of their pension plans in the way they are in the UK. I guess Merkel thought it was time to do something about that.
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