House Price Crash Part 2

Harry_Powell

gee, I hope so. My 'thanks' count is really quite poor.

Really2

You can have one on me. (what was your previous log in:))

Harry_Powell

You'll never guess

Jonbvn

Really2 wrote: »

I don't think we are going to see high inflation either.
The 10%+ IR is wishfull thinking. I am more of a deflation view myself.

AEP in the Torygraph is also saying deflation is the problem.

Chancellor Angela Merkel lashed out last week at quantitative easing by the Fed, the Bank of England, and the European Central Bank, repeating the silly mantra that this will set off an inflationary storm. How can it do so when the velocity of circulation has collapsed, and unemployment is rising everywhere? The Fed's "monetary multiplier" ended last week at 0.867, half its average of 1.7 over the last decade.

Really2

Harry_Powell wrote: »

You'll never guess

You right you are to polite. But if you are new have a look at some of the better crash, crash ,crash posters. Dopester (deflation) !!!!!! (Hyper Inflation) AD9898 for bit of everything.

Dan:_4

.....and then you have the downey/fatpig/napleoan user who simply 'cut and pastes' the same soundbite on every thread.

Really2

Jonbvn wrote: »

AEP in the Torygraph is also saying deflation is the problem.

Chancellor Angela Merkel lashed out last week at quantitative easing by the Fed, the Bank of England, and the European Central Bank, repeating the silly mantra that this will set off an inflationary storm. How can it do so when the velocity of circulation has collapsed, and unemployment is rising everywhere? The Fed's "monetary multiplier" ended last week at 0.867, half its average of 1.7 over the last decade.

Indeed, I don't want it as I am a home owner, but at least I thought it was the strongest possibility so I got a stupidly low tracker.

If you are going to carry debt in deflation it is best to make it very cheap to service during deflation (so you can actualy over pay), that chance passed September/October.

Really2

Dan: wrote: »

.....and then you have the downey/fatpig/napleoan user who simply 'cut and pastes' the same soundbite on every thread.

Now thats not all.....................


Don't forget the personal insults too:)

chucky

Jonbvn wrote: »

AEP in the Torygraph is also saying deflation is the problem.

Chancellor Angela Merkel lashed out last week at quantitative easing by the Fed, the Bank of England, and the European Central Bank, repeating the silly mantra that this will set off an inflationary storm. How can it do so when the velocity of circulation has collapsed, and unemployment is rising everywhere? The Fed's "monetary multiplier" ended last week at 0.867, half its average of 1.7 over the last decade.

i'm yet to see anyone prove that the asset replacement program will cause inflation

the_ash_and_the_oak

Dan: wrote: »

Why do people assume that house prices will crash with higher interest rates?

in general pretty sure the idea is that the higher the interest rate the lower the amount of capital available to a first time buyer, as the affordability from monthly salary has changed negatively for them