Thursday, December 11, 2014
Are you starting to see the trend?
Of course, Norway, so dependent on oil taxes has been forced down this route because the commodities slowdown makes Norway's huge national debt unsustainable (you are witnessing the slow collapse of Socialism). Britain will be forced to follow suit in short order, and note, most current mortgages price in a 0.25% rise in rates. What will happen when the market prices in a 0.25% cut and subsequent cuts to follow that is an absolute bomb in the housing market. Note, despite the economy being larger than 2008 with at least 3 million more people (most in London), prices are not far off 2008 levels and transactions are well below. All points towards a major housing price boom with recent stamp duty changes creating a massive improvement to SENTIMENT.