Halifax -2.6% in November

WTF?_2

dopester wrote: »

Just to be clear !!!!!!.. I'm not attacking you personally or your expectations.

I've probably read many of the news articles you have in recent weeks, with some eminent minds calling for the printing presses.

If I was forceful above, it wasn't to attack you personally.. but simply the certainty you seem to have in inflation and the printing-press being a near absolute certainty.

I wouldn't want to see you (or I for that matter) take on considerable debt when the continuing forcing on the economy may bring a deflationary outcome, which makes all debt a lot heavier to deal with.

Cheers, I appreciate your arguments and very much appreciate the fact that we can have a rational debate.


I was convinced the crash would happen when prices were rocketing and the economy was steaming ahead.

Equally, I'm convinced now that prices are crashing and the economy is tanking that we will see money printing and an inflationary backlash happen.

Just like it wasn't possible to date exactly when the crash would start (could have happened any time 2003-2007 in hindsight), it's not going to be possible to date when this next disaster will unfold, but I'm absolutely convinced that it will and probably within the next 18 months.

The governments of course will justify the money printing course of action on the grounds that it will just be an inflationary 'kick-start' to a stalled economy. I think they are going to be proven wrong, big time. Once politicians start printing money and controlling the banking system they will not be capable of acting responsibly.

Kenny4315

carolt wrote: »

But surely house prices can't go shooting up unless salaries go shooting up - and somehow, I don't see this happening, either?

Or am I missing a trick here?....

That's the whole problem they did .... house prices when through the roof due to stupid borrowing/lending, (rather than salary increases and the 3 1/2 times salary constraints previously imposed and a nice 10% to 15% deposit), on the back of crazy fiscal policy, that used interest rates as the predominant method of control, on inflation based on commodities that had little on no impact (tins of beans, etc), while house price inflation was ignored as it allowed more money in the ecomony on the back of consumer debt thus allowing Mr Clown to AVOID A BOOM & BUST CYCLE .......... Doh.

The problem it is now so $crewed it ain't going to matter if it gets down to 0% house prices are still going to fall for another 6 to 9 months or 15% to 20%.