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Q: Crash Ahoy - What Will Trigger The Next Leg Down?

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To my mind house prices are being sustaine by current very low interest rates (owner occupiers/BTL can stagger on), QE (Banks can 'sort of' lend at a price some can afford) and very low 'other' investment returns(cash earns nothing in the bank etc.).

QE and very low interest rates are only possible if your trading partners are in the same boat economically speaking. If their economies are doing well and you take the QE/low IR approach your currancy is going to get hammered.

Hence, the current approach by our government is only viable until one of our major trading partners recovers.....like europe.

Germany etc. are coming out of recession, hence, could this trigger the second leg of the 'W' or am I barking up the wrong tree?

Someone tell me if my thinking is flawed here! Thanks guys!

(Quick edit: This is of course presuming our economy doesn't recover at the same time/rate or faster than Europe - personally I think this likely as we definitely seem to be in a worse position)

Edited by willing

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