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End Of An Era

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http://www.telegraph.co.uk/money/main.jhtm...5/16/cnus16.xml

Realist bear has posted the same link but I thought this was worth it's own section.

"Those looking to squeeze the last juice from the lax monetary policies of the 2001-2005 era shifted to the commodity markets, but after a climactic surge even commodities are now taking a beating," he said.

So to ask a silly question what happens when there is less money supply in this world?

Come on all HPC'ers it fun time to see these effects unwind.

'Analysts said the global sell-off was a repeat of the "carry-trade" unwinding that hit Iceland, New Zealand, and Hungary in April, but now seems to be spreading far wider.'

It's only May now and 3 countries have been given a devestating economic blow so far, and spreading.

Risk is important in financials issues and I'm no genious here but with an understanding of how banks claw back there money through tight / lax monetary policies bust / boom cycles everything is fitting into place.

The Oil tanker cannot move with the speed the money-men can.

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'Analysts said the global sell-off was a repeat of the "carry-trade" unwinding that hit Iceland, New Zealand, and Hungary in April, but now seems to be spreading far wider.'

As far as I'm aware, property prices in Iceland and New Zealand are still in positive HPI territory.

Sometimes the only thing that I think is going to stop HPI is to take a club and beat everyone over the head with it.

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As far as I'm aware, property prices in Iceland and New Zealand are still in positive HPI territory.

Sometimes the only thing that I think is going to stop HPI is to take a club and beat everyone over the head with it.

The Oil Tanker hasn't caught up with the bankers yet. It's can be a reflect action (Bankers) and then again things take time (personal financial issues).

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Quote

The Oil tanker cannot move with the speed the money-men can.

Didnt think of it quite like that, interesting

I think it will take another 2 years, maybe more, for most of the cheap money to "dry up"

It will take much longer for people to pay off their loans.

What happens if the carry trade money is "called in" to be used for other purpose, or simply gets too expensive in comparison to UK base rates. Will the mortgagors foreclose? or will they need excuses such as non payment etc? when (or if) they get cash flow problems. Does any one know?

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Quote

The Oil tanker cannot move with the speed the money-men can.

Didnt think of it quite like that, interesting

I think it will take another 2 years, maybe more, for most of the cheap money to "dry up"

It will take much longer for people to pay off their loans.

What happens if the carry trade money is "called in" to be used for other purpose, or simply gets too expensive in comparison to UK base rates. Will the mortgagors foreclose? or will they need excuses such as non payment etc? when (or if) they get cash flow problems. Does any one know?

Have the Americans pulled their M3 statistic to hide the contraction of the money supply which is about to take place?

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As far as I'm aware, property prices in Iceland and New Zealand are still in positive HPI territory.

Of course, they now have rampant inflation and their currency is tanking. Interest rates are now 11.50% in order to stem the flow, this is battering the property market!

Central Bank of Iceland

Consumer prices, 12-month changes. Last value:
7,6%
Inflation target
2.5%

At least they're honest!

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Guest Winners and Losers

As far as I'm aware, property prices in Iceland and New Zealand are still in positive HPI territory.

Sometimes the only thing that I think is going to stop HPI is to take a club and beat everyone over the head with it.

It is my understanding that NZ is going the same way as Oz, albeit it a little later.

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It is my understanding that NZ is going the same way as Oz, albeit it a little later.

I very much hope so. Over the long run, NZ may be of more interest to me than staying in Britain. :unsure:

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Actually Urea is up nearly 40% in under a month.

A main ingredient for fertilizer I believe, maybe foodstuffs will be the next for the big whizz up the monetary wall.

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Guest Winners and Losers

I very much hope so. Over the long run, NZ may be of more interest to me than staying in Britain. :unsure:

I'm quite sure its crashing. I'll see what info I can find. ;)

Another immigrant down under then. :rolleyes:

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Guest Winners and Losers

Soooo noooo! :rolleyes:

I think I have accomodated you for far too long. :rolleyes:

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Guest Winners and Losers

Could you guys get a room please!

Been there, done it, got the god damn t shirt. :rolleyes:

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I'm quite sure its crashing. I'll see what info I can find. ;)

Another immigrant down under then. :rolleyes:

I'd heard that inventories had already risen dramatically about 6 months ago in Auckland.

There was an article a few months back how prices in the city had fallen because all the new 2 bed (surprise surprise) apartments were struggling to find tenants.

Apparently they're not going to be making their fortunes from Chinese students heading over to learn English.

I have a friend who's bought off-plan over there, too embarassed to ask how it's going...

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  • 302 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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