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TheCountOfNowhere

Sky, UK house prices in worst three-month run since 2009

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And we're dropping down the G7 growth table, right to the bottom.

That's what happens when your economy relies on selling houses to each other. 

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2 hours ago, Nabby81 said:

Oh yes its terrible news what we need for a growing econony is house prices increasing 1000's of pounds per month ...

 

The problem is that mortgages are THE major source of private sector credit creation ... and when the economy is looking dodgy you don't want credit drying up if you are trying to centrally manage the economy (as the governments/ Central Banks are now effectively doing).  So when things start to stagnate, you are only going to do one thing and that's to try to get that credit pump going again.  How?  Even more money printing and interest rate repression.  Incentives to entice people to borrow, disincentives to sitting on wealth (for the average person that is, which effectively means savings).

 

They say you can't push on a string or reflate a bubble but that's exactly what they did in early 2008 and it has 'worked' (sort of) for eight years.  TPTB will simply decide that more of the same is needed.

 

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