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Realistbear

Thirst For Cash That Threatens A Crash

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http://www.telegraph.co.uk/money/main.jhtm...2/cctrade12.xml

Thirst for cash that threatens a crash
(Filed: 12/09/2006)
The next crisis may not involve an exotic economy, says Ambrose Evans-Pritchard
The crash in May of exotic currencies and stock markets across the world already seems no more than a bad dream, a momentary disturbance to the Goldilocks bliss now assumed to be the normal state. Bombay's Sensex index of Indian equities has roared back 32pc since June as foreign investors turn a blind eye to a poisonous fiscal deficit (state and federal) of 9.3pc of GDP...../
Richard Fox, the author of the Fitch report, said: "We're still in a global upswing but this lending cycle is already starting to turn in some countries.
Credit growth has been zooming across the whole of Eastern Europe and that has tended to be a precursor to banking troubles."
Fifteen economies are now above their 15pc annual "speed limit".
Over the past year, credit growth has been 49.7pc in Lithuania, 46.3pc in Estonia, 41.1pc in Ukraine, and 46.1pc in Kazakhstan, where property prices are up 900pc in five years on the back of an oil boom. Mr Fox said: "Russia is enjoying a high oil price now but nothing goes on forever." The Moscow bourse, which has risen 1,800pc since 1999 to boast a market worth of more than $950bn, now shows early signs of breaking down....../
"The risk has moved from the outskirts to the heart of the system, and it's now pressing on the very aorta of capitalism."

We are living on borrowed money and borrowed time. There is no way this credit binge and hyper inflation in houses is going to last beyond Winter. :o

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http://www.telegraph.co.uk/money/main.jhtm...2/cctrade12.xml

Thirst for cash that threatens a crash
(Filed: 12/09/2006)
The next crisis may not involve an exotic economy, says Ambrose Evans-Pritchard
The crash in May of exotic currencies and stock markets across the world already seems no more than a bad dream, a momentary disturbance to the Goldilocks bliss now assumed to be the normal state. Bombay's Sensex index of Indian equities has roared back 32pc since June as foreign investors turn a blind eye to a poisonous fiscal deficit (state and federal) of 9.3pc of GDP...../
Richard Fox, the author of the Fitch report, said: "We're still in a global upswing but this lending cycle is already starting to turn in some countries.
Credit growth has been zooming across the whole of Eastern Europe and that has tended to be a precursor to banking troubles."
Fifteen economies are now above their 15pc annual "speed limit".
Over the past year, credit growth has been 49.7pc in Lithuania, 46.3pc in Estonia, 41.1pc in Ukraine, and 46.1pc in Kazakhstan, where property prices are up 900pc in five years on the back of an oil boom. Mr Fox said: "Russia is enjoying a high oil price now but nothing goes on forever." The Moscow bourse, which has risen 1,800pc since 1999 to boast a market worth of more than $950bn, now shows early signs of breaking down....../
"The risk has moved from the outskirts to the heart of the system, and it's now pressing on the very aorta of capitalism."

We are living on borrowed money and borrowed time. There is no way this credit binge and hyper inflation in houses is going to last beyond Winter. :o

Borrowing against property has fuelled "growth" world wide. The UK has built the "economic mircale" around house price inflation. I can not see how we can avert a credit crunch and the knock on effects on the world monetray system. I hope more people will read this articel before taking out a huge mortgage.

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Borrowing against property has fuelled "growth" world wide. The UK has built the "economic mircale" around house price inflation. I can not see how we can avert a credit crunch and the knock on effects on the world monetray system. I hope more people will read this articel before taking out a huge mortgage.

IMO most of the people taking out mortages now can't even add up, never mind understand that article...

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We are living on borrowed money and borrowed time. There is no way this credit binge and hyper inflation in houses is going to last beyond Winter. :o

Is that not what they said in '14, '39 and '03?

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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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