Friday, Jun 14, 2013
Get worried, George 'Help to Broke' Osborne
if overnight rates go from near zero to 2.2 percent in three years, and 10-year Treasury rates rise from a recent low of 1.6 percent to 4.5 percent, as projected by the Congressional Budget Office in the United States, then will people in Canada, the U.K., and Australia expect their house prices to fall by 50 percent?
Assuming that most homeowners do not anticipate this sort of plunge in prices, and have not hedged themselves against this possibility, we may be in for another round of very bad news if interest rates ever return to more normal levels. It is remarkable that the latest run-up in house prices has received so little attention from people in policy positions. There may be an enormous price to pay for the continued lack of attention to housing bubbles.
- 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