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Is History repeating itself in the housing market after the Double MIRAS housing boom of 88 followed by the crash due to rising inflation and interest rates


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What will prevent this happening again:

govts ignoring inflation so they do not have to put up interest rates

govts more likely to intervene if they see issues ahead (just done this for flats u18m no longer need an EWS1 so will release 3 million flats onto market)

Any other thoughts

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Then

Housing market turns >  All the debt money generated has nowhere to go > Inflation > IRs jacked up > get f****d > Elites win

 

Now

Housing market turns > All the debt money gets sucked up by QE > ZIRP >  get f*****d > Elites win

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IRs are just a tool to cool inflation, always  were, dat wa da 80s,  we are in a wonderful new world of funky voodoo economics.  The reality is they are experimenting with QE, printy printy and the rest, they are sitting with a tall whisky and cigar waxing lyrical about post boom and bust and how inflation has been tamed, a tax rise here, an little interest rate increase there.  Reality is there will never be actual interest on loans again, what a barbaric concept.  Hopefully the grand experiment does not go too badly wrong.....

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1 hour ago, 24gray24 said:

Come on, the central banks are stuck in a debt trap. 

Put up interest rates, and the economy implodes. 

Don't put up interest rates, and inflation explodes, then the (debt based) economy implodes. 

 

Two words. Wage inflation. They're just waking up to the reality (and that means IR rises sooner rather than later)
https://www.poundsterlinglive.com/economics/15711-broadbent-warns-of-significant-inflation-but-is-coy-on-need-for-interest-rate-rises

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