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ronnie

Soros And The Crash

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Did soros cause the house price crash in early 90's? i didnt think he did but i'm having devate with someone who thinks he did,i thought prices were already falling when soros stepped in.

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Guest Alright Jack

Did soros cause the house price crash in early 90's? i didnt think he did but i'm having devate with someone who thinks he did,i thought prices were already falling when soros stepped in.

That George Soros caused the house price crash is a ridiculous suggestion.

Soros did what all successful money managers do and that is profit from the circumstances. He knew the pound was in trouble because of debt, budget and trade deficits (a mere blip on the radar compared to the situation today) and so he shorted the currency. The bank of england and the chancellor decided to try and manipulate the market by selling their foreign currency reserves to buy pounds. It didn't work and just dug an even deeper hole for the UK and expanded the profits of the currency speculators, most conspicuously, George Soros.

It is interesting to note that a parallel can be drawn with the current manipulation in the gold price as compared to the US dollar. The banks are doing exactly the same thing today by selling gold to prop up the worthless paper currencies. It will ultimately fail and there will be lots of profit to be made.

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That George Soros caused the house price crash is a ridiculous suggestion.

For once I might actually agree with "Jack"

Black Wednesday was the 16th September 1992. That was the day the UK was forced out of the ERM.

If you look at the graph you can see that by then the housing crash was a fait accompli.

So Geroge Soros didn't cause the housing crash, it had already happenend.

(The Sterling crises that happened in the 70's and 90's are shown by the red dots, interestingly at the end of the respective recessions)

Housing_and_Sterling.jpg

post-1529-1152441118.jpg

Edited by BandWagon

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The early 90s HPC started well before the events of White Wednesday. However, the pound's entry into the ERM amplified the late 1980's boom and the subsequent bust. It was Nigel Lawson with the support of other Europhiles who put the pound into the ERM against the better judgment of Thatcher and her then economic advisor, Alan Walters. This had the effect of first inflating the Lawson boom as interest rates had to be set too low and then greatly exacerbating the 90s' recession as rates had to be kept artificially high in order to stop the pound from dropping out of the ERM's permitted trading range. The Tories are unfairly blamed for the recession -- which was world wide -- but they were to blame for making it much worse in the UK by joining the ERM. After George Soros and others set the pound free from the shackles of the ERM the economy made a strong recovery, but it was too late to save the Tories reputation.

Despite this lesson in why single currencies don't work there are still some numpties who think the UK should join the Euro.

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(The Sterling crises that happened in the 70's and 90's are shown by the red dots, interestingly at the end of the respective recessions)

That seems very ominous.

It probably means we won't see a major international currency crash until the HPC is well under way.

Best time to buy will probably be just after the revaluation. Around 2008-2010 by the looks of it.

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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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