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BigBang

Msn Money Officially Calls Us Housing Crash

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The trouble is that the way Alan Greenspan, the much-lauded former Fed chief, kept the US economy afloat after the tech bubble burst was by inflating a newer, bigger bubble - the US housing bubble. Now that the US housing bubble is bursting, it’s hard to see how you could find another, bigger bubble to cushion the impact - after all, there are few other assets that are owned by such a significant portion of the population
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Substitute Al's name with Gordons and the US economy for ours and you have a suitable article for the UK in a few month's time. You cannot beat the market and with speculative assets, like houses, they boom and they go bust in a never-ending cycle.

Roll on Great Crash 2 so we can start talking about where we are going to buy our next house at bargain prices. :D

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I still have a problem with the theory that if the US goes into recession, how will inflation be kept high? Falling demand = falling inflation = falling interest rates.

<_<

Nice in theory.

What often happens in a recession is that foreign investor's lose confidence in the economy, they withdraw their money and the currency slides.

This leads to rising inflation at the very time the economy is slowing, and interest rates suddenly have to shoot up even though demand is falling.

All the nice little rules that held while things were going well start going horribly wrong.

And there's not much a central bank can do about that.

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I still have a problem with the theory that if the US goes into recession, how will inflation be kept high? Falling demand = falling inflation = falling interest rates.

<_<

its too late, the party's over. now comes the bust

but don't worry, it couldn't happen here - that would be ridiculous doomspeak ;)

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I still have a problem with the theory that if the US goes into recession, how will inflation be kept high? Falling demand = falling inflation = falling interest rates.

<_<

With the house no longer being the closet ATM machine people will look elsewhere to fund their lifestyles that they have become used to. The most obvious place to look is in their pay packet. This leads to the dreaded wage demands.That is what really scares Brown,King and Bernanke.

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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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