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House Price Crash Forum

Can The Economy Grow Without A Reset Of House Prices

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Can we go back to a booming Economy whilst house prices are so high?

Jobs are going to be hard to come by surely, if we're demanding 2007 wages to support our 2007 mortgages and rents?

Nope and yep.

QE2 won't work. If it works then QE1 would have worked but it didn't. The simple reason is that we have gone past the point of stimulus having any lasting effect. The patient is too ill to drink red bull. Keynesianism has no place in putting right this debt overhang. The debts are already too high and causing most countries to look bankrupt. The economy will not therefore spark up with more borrowing being taken on. It's this fallacy which Euro leaders have not yet accepted. They feel they should come up with a grand plan. Make 'policy statements' . The idea of NOT spending or Borrowing more has not ocurred to them. Growth will stall they say....wait a minute, QE1 went by ....and growth stalled. Hmmmmmmm. Just remember it was £200billion ...and it didn't work. It will not cause house inflation this time. It will actually hasten the debt fuelled endgame. The housing market is now over the cliff edge and the fingernails are beginning to break.

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