Thursday, May 10, 2007
Liquidity will eventually be absorbed or, if property prices decline, be destroyed
The Independent: The UK is set to lead the way today with action to tackle global financial warming
In this climate, it is very important to remember that liquidity will eventually be absorbed, or even, if property and other asset prices decline, be destroyed. Gradually global monetary conditions will tighten, as what is happening here will happen elsewhere. But this will take a long time. The UK is, with the US, simply an early mover in what will become a global trend. Meanwhile, be aware that a lot of us think that this rise in UK rates will not be the last one, and that a few of us, myself included, still think that UK rates may well reach 6 per cent this cycle.
Posted by sold 2 rent 1 @ 08:10 AM (163 views) Add Comment
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