Sunday, January 6, 2008
House prices will rise, sterling will strengthen, all is fine in cookoo-land
"My prediction for house prices remains one of stagnation – broadly flat." "As for sterling, its fall in recent weeks has been the product of several factors. It was caught in the dollar-euro crossfire and hurt by the damage to the Bank and Treasury’s reputations as a result of Northern Rock, together with the government’s wider difficulties. The apparent willingness of the Bank to cut rates aggressively has contributed, as has the perception that Britain is heading for US-style economic and housing weakness. There are the twin deficits; poor public finances and a horrendous, £20 billion current-account deficit in the third quarter. But sterling is only a little below its average" What a spinmaster!! GBP lost 12% to the EUR since February!! "Dollar-euro cross fire"... what a bs!!