Article a few days old I know. Precisely the same thing happened in the last property downturn, and I predicted on this site a few years ago that this would occur this time too.

Hector Sants, the chief executive of the Financial Services Authority (FSA), has announced he is to step down as head of the City regulator. Media reports suggested he resigned unexpectedly last night.

This could be it....Stepek is right, Goverments cannot keep propping up the market with gurantees that investors in gilts see no austere plans ahead!

Posted by magnaman @ 10:58 AM 13 Comments

The big risk in China today is inflation – not just because of the 2009 money blowout, but also thanks to secular demographic trends that are generating wage pressure.

The January 2010 RICS Housing Market Survey showed an increasing number of surveyors seeing price rises rather than falls. The seasonally adjusted net balance of surveyors reporting rising rather than falling prices rose to 32% in January from 30% and is now only slightly below November's recent high of 35%. However, buying and selling fell during the month; respondents to the survey attributed this to the extreme weather conditions experienced in the early January. The new buyer enquiries net balance fell to -20% (from +18%), the agreed sales net balance fell to -15% (from +19%) and the new instruction net balance fell to -5% (from +15%).

In short, it'll be very nasty. But this is small beer compared to some of the debt time bombs that are ready to go off around the rest of the world.

''One of the world's leading economists has urged Gordon Brown to reject "fiscal fetishism", defy the markets and maintain, or even extend, the fiscal stimulus of the British economy. Joseph Stiglitz, who won the Nobel Prize for Economics in 2001 and has served as chief economic adviser to President Clinton and chief economist at the World Bank, warned that the financial markets were like a "crazy man" that could not be appeased with cuts to public spending.''

Rightmove's latest index shows that 32% more surveyors reported price rises than falls - up from +30% in December, and better than the predicted +27%. However new enquiries from potential buyers fell for the first time in 14 months, while the number of new sellers entering the market fell for the first time in seven months. “House prices are likely to rise in the short term, but if more supply continues to come onto the market, it is possible that the market will run out of steam” said Rightmove.

Posted by little professor @ 04:26 AM 11 Comments

Wait for the pop!

This analysis suggests that the entire stock bubble since 1980 was just that, a bubble, and it is all about to pop. 1,000 on the DOW anybody? Really, the whole thing has been a bubble since 1971 when the US dollar dumped the gold standard. This didn't only affect the US, because most countries have the majority of their reserves in the dollar, so, it wasn't the US that came of the gold standard, it was the entire world. They have a choice now, deflationary depression or hyperinflation to bide time. I think they want a war to distract, history has that every time, but can they get away with it now that we have the internet to expose the necessary false flag event?