Monday, May 14, 2007
Depressingly Old Paradigm
FT.com: Assessing the cycle is it really different this time?
A more domestic IDTT concerns housing. In the UK, we are assured that cyclical rises and falls in house prices are a thing of the past. Houses are in short supply, so prices can only carry on up. The fact that prices have also risen in countries with no supply shortage and in some, such as Spain, now look like falling sharply is rather glossed over.
Posted by ides of march @ 01:48 PM (179 views) Add Comment
3 Comments
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1. sold 2 rent 1 said...
Great article
There is one thing that might just be different this time the level of debt as a proportion of GDP.
Because the level of debt has been increasing for 50 years now its relevance as an economic indicator gets ignored
We know we cant keep expanding debt to infinity and a plateau of high debt levels is as likely as a plateau of high house prices
Maybe this time the level of debt is enough to break the economic cycle. Everyone is looking for high inflation and high interest rates to do the job. Maybe this time it will be different.
2. Peter Ohanrahanrahan said...
Nice.
The last sentence is so true.......
3. Scott said...
The stigma of debt needs to be brought back. People are living beyond their means and instead of enriching them it has corrupted them. But it cannot go on.