Tuesday, December 11, 2007

No part of the global system will be immune

Decade of Debt delusion is ending

"People are going to start feeling much poorer soon, as equity markets fail to perform and incomes feel the pinch of inflation. What we haven't seen is a proper unwinding of the leverage built up, certainly over the past four or five years. When asset prices are ballooning leverage is a wonderful thing, super-powering returns, as witnessed in the UK housing market. But when prices start to fall that leverage acts in a savage downward spiral, wiping out gains on investments that prove as flimsy as the thesis they were based upon."

Posted by sold 2 rent 1 @ 11:44 AM (488 views)
Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>