Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Yet Another Deflation Warning As Prices Collapse

Recommended Posts

http://finance.yahoo.com/news/Lower-prices-could-mean-cnnm-4270795979.html;_ylt=Ai7yECBaqGmiy5.xXjUigCu7YWsA;_ylu=X3oDMTE1dmU3MG42BHBvcwM3BHNlYwN0b3BTdG9yaWVzBHNsawNsb3dlcnByaWNlc2M-?x=0&sec=topStories&pos=5&asset=&ccode=

Lower prices could mean deflation and double-dip recession
Chris "Christopher" Isidore, senior writer, On Tuesday June 8, 2010, 9:05 am EDT
Lumber prices are sinking. And while that might make a trip to Home Depot cheaper, it's also a sign that the global economic recovery and the U.S. housing rebound are in danger of stalling.
Only a few months ago, inflation was the main worry of many economists. But falling prices for the raw materials of many industries, including lumber, have set off deflation warning bells for some economists, who worry that they could signal another global economic downturn.../

The housing market drove the worldwide bubble. If the housing market fails to recover or goes for a double dip (as is 100% certain and guaranteed in the UK) prices will follow suit. The housing market is the main driver of most Western economies as so much hinges on it. Japan's deflation was directly caused by the collapse in their speculative property market which spilled across the globe in the 80's.

Inflation cometh better batten down the hatches and run to cash.

Share this post


Link to post
Share on other sites

Deflation is the natural cycle of the economic system.

You can't inflate forever at some point we have to breathe out.

It's a ying yang thing.

Yin/Yang follow each other where balance and harmony is :) Is it the case with the UK economy?

Share this post


Link to post
Share on other sites

Yin/Yang follow each other where balance and harmony is :) Is it the case with the UK economy?

If you immediately knew the candlelight was fire, then the meal was cooked a long time ago.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.