Friday, Mar 12, 2010

Don't be fooled - house prices will fall again

MoneyWeek: Don't be fooled - house prices will fall again

One year on from the UK property slump, and prices seem already to be rebounding. But is everything as it seems? James Ferguson reports.

Posted by damien @ 03:38 PM (485 views) Add Comment

2 Comments

1. fjcruiser said...

Excellent article, thanks for posting.

Friday, March 12, 2010 07:29PM Report Comment
 

2. stillthinking said...

Indeed. Nice one.

Japan did have a credit famine (when all their banks were busted), and also huge hidden losses, but we shouldn't forget that after the Japanese government stepped in (like the UK) subsequently it was the populations choice to avoid borrowing, because real interest rates were high, because money value relative to everything else started soaring (asset price collapse) and so they hit the problem of zero interest rate still being too expensive debt servicing.

Catch-22 is why we so many punters advocate loose monetary(low interest rates) and tight fiscal policy (cut government borrowing and stop the crazy Brown from pushing up interest rates). I think that we have to choose to willing deflate at some point myself but anyway.

Friday, March 12, 2010 11:03PM Report Comment
 

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