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Eurozone Cpi At 4%

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But rate rises are a catch 22, they are supposedly needed to bring inflation down, but yet in increasing interest rates triggered the credit crunch. So a further rate rise just makes the economic situation worse, meaning further house price losses causing the financial instability to worsen.

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But rate rises are a catch 22, they are supposedly needed to bring inflation down, but yet in increasing interest rates triggered the credit crunch. So a further rate rise just makes the economic situation worse, meaning further house price losses causing the financial instability to worsen.

The credit crunch was necessary, given the position that we had got in to. There cannot be a financial recovery without flushing the bad debt out of the system and reaching a bottom in house prices. "If it's not hurting, it's not working."

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But rate rises are a catch 22, they are supposedly needed to bring inflation down, but yet in increasing interest rates triggered the credit crunch. So a further rate rise just makes the economic situation worse, meaning further house price losses causing the financial instability to worsen.

Which is why I get the increasing impression that when central bankers say they have done everything they can to see us through this crisis, what they are really saying is "Look, we're on a collision course with destiny. We've tied the steering roughly straight and put a brick on the accelerator pedal and now we're jumping from the driver-side door. Good luck everyone."

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The credit crunch was necessary, given the position that we had got in to. There cannot be a financial recovery without flushing the bad debt out of the system and reaching a bottom in house prices. "If it's not hurting, it's not working."

Spot on.

.

ST

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  • 396 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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