Marc Coleman: Stressed market means prices have fallen too far
The property market must now be stabilised for the sake of our economic recovery, warns Marc Coleman
It was my first and best economics lecturer John O'Hagan who told me that of all the other sciences, economics was closest to medicine. Economies are, like human beings, highly complex and thinking of troubled economies as sick patients is a useful way of grasping that complexity.
One of the most threatening disorders facing our domestic economy and chances of recovery right now is the condition of our property market and the closest medical analogy I can think of to describe the problem is bipolar disorder.
As loved ones of those who suffer from it know, the swing from exhilarated highs to depressive lows is exhausting and distressing. Likewise the property market's swing from the highs of early 2007 to its current lows has taken its toll in the form of reckless personal borrowing, an illusory surge in tax revenues and a resultant wasteful spending binge.