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That Last Cut !

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Check out this report (posted by seebe on the other HPChat)


Take particular note of Chart 3 - and the comment that goes with it "This divergence between housing and retail activity is unprecedented (Chart 3). Perhaps investors, not ordinary consumers, are returning to the markets"

Well folks I think this is it. I have said many times in the past that high pricing is destroying normal transaction activity - activity where buyers would buy into the bottom and other levels of chains and in the process spend large amounts of money on goods and services. FTB numbers are low and staying low, they are not entering the market in significant numbers but invetors are - a lot of those will spend sod all on refurb caompared to an owner. Check out the retail activity on that graph - it plummeted right when rates were cut. There is another reason too, the BOE effectively shafted savers with that cut - natural reaction of savers is "sod it, if I'm gong to be punished for saving I will either have to spend the money or save MORE and cut back on spending to keep up with the game. You can extract two types of expenditure - encouraging borrowers to borrow more or savers to spend some of their money, as seen from Japan cripple the savers an they will not spend for very long periods of time.

I think we have seen the final roll of the dice,

Edited by OnlyMe

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  • 301 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%

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