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One Of The Hopes Of Wall Street For 2006

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Hope No. 4: The housing market slowly deflates
We're not talking about a dramatic burst, but rather a slow air leak. The housing market started zooming up as the turn-of-the-century stock bubble burst, which sent investors who were looking for double- digit returns away from the Nasdaq and toward Las Vegas condos. Day traders became real estate flippers.
But the housing market has a few things working against it. One is plain old affordability — housing prices in many cities are too high for families at the median income to afford. Also, banks are under pressure from regulators to tighten their lending standards, which should decrease interest-only loans and adjustable-rate mortgages, making it harder for people with marginal finances to buy a house or condo.
If the froth dissipates from the housing market, perhaps stocks will return to their place as the speculators' investment of choice. No one on the Street will come out and say, "We want our speculators back!" but if those speculators have any money left, no investment house will turn them away.

The powerful VIs in the US want the housing market to deflate so that's what the powerful VIs will get (and are getting as the US market is now in bear mode). The question is are the US financial policies the same as those held by the powerful UK investors?

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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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