Thursday, Mar 15, 2007
Inflation concerns in the US
BBC News: Shock jump in US producer prices
Could this be a recession and inflation in the US at the same time.
Are we looking at stagflation
Posted by sold 2 rent 1 @ 01:53 PM (153 views) Add Comment
11 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. sold 2 rent 1 said...
Where have the housing bulls gone?
Come on David, NoHPC and Glorious.
Let's hear your arguments
2. Boarder said...
Another BBC "Shock"
3. inbreda said...
s2r1 - why would they start giving reasoned arguments now? They never did in the past!
4. C'mon Correction said...
Inbreda - :o) lol
5. Tangara said...
S2R1 : maybe they are busy selling their BTL.
6. harold said...
Part-timers...
7. Davros said...
Didn't you know houseprices always rise? It's fact. (Well apart from the last time it crashed obviously)
8. george monsoon said...
Those California girls must be feeling the pinch now!
9. denzil said...
Unless the jump is a blip the US economy is looking seriously f***ed. This article completely kicks in the head any chance of a US rate cut to stem the problems of the sub-prime market. Looks and smells like stagflation.
The news from the US is potentially nothing to rejoice in considering the amount of employment in the UK generated from US companies. An HPC is no good whatsoever to an FTB without a job. The only winner is a cash buying STR and I doubt whether there is too many genuine complete cash buyers.
10. Whiteknight said...
Stagflation? certainly.......
This is what the "markets" with their "all priced in" nonsense have failed to observe.
Each time there is inflationary information they think that the FED will need to raise rates. Each time there is news of a slower economy they think that this signals the FED will not need to raise rates and will be able to decrease rates.
This simply shows that most people current involved in markets are under the age of 35 with a large proportion under the age of 30 and the rest have been on the Coolade
When they finally realise that rates will need to go up whatever happens (or a currency collapse - pick your poison) then we will see some approprate redress of the imbalances of recent years and the market will start to assess risk in the ballpark of something useful.
I have observed in almost everything that bailing out people from their mistakes just removes personal responsibility. This is what has now happened in financial markets. Previous problems being smaller and earlier in the cycle have been able to be bailed out (LTCM etc.). Hence everybody starts to behave in a less controlled manner. Eventually THERE IS NO BAILOUT because THERE IS NO MORE MONEY.
It also keeps money gong to places where it is used inefficiently.
The reality is that both the economy will weaken AND rates will need to go up.
This is primarily due to the earlier mis-management in the last 5 years of thinking you can reduce rates to silly levels and essentially print money. to get out of trouble.
Central Banks will be forced to keep raising rates so that people will want to buy into their currencies (or at least wont wont to sell them off) relative to other currencies. Then you had better have something other to offer than houses.
11. pedagog said...
I disagree. A recession is just what we need. It will give us a much bigger and better hpc.
Okay temporarily some will suffer hardship through unemployment, but that's just a case of necessary pain.
All the same, hope its not me who loses their job!