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Bubble Warning from senior economist

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Comments

  • macaque_2
    macaque_2 Posts: 2,439 Forumite
    The thing about a bubble is that the bigger it gets, the smaller the pri1ck needed to pop it.


    Clarification
    A small pr1ck is the CEO of a small bank. A big pr1ck is the CEO of a big bank
  • antrobus
    antrobus Posts: 17,386 Forumite
    Carl31 wrote: »
    http://news.sky.com/story/1161992/house-prices-tax-to-tackle-london-bubble

    Even Gerorgy-O thinks there's a bubble

    Strange, your source doesn't say that at all.:) It merely refers to "what many see as a house price bubble in London and the South East of Britain". There is no suggestion that Gideon is one of that "many".
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    I must admit, I can't help but feel when interest rates inevitably rise again, a lot of prices will come back from speculative levels. If interest rates are low, borrowing is cheaper for sure, but also banks are paying negligible interest on bank accounts making speculation more attractive for a higher return. I guess we'll see...
  • TruckerT
    TruckerT Posts: 1,714 Forumite
    antrobus wrote: »
    Strange, your source doesn't say that at all.:) It merely refers to "what many see as a house price bubble in London and the South East of Britain". There is no suggestion that Gideon is one of that "many".

    The bubble which burst in 2007/8 was similarly 'seen by many', but, as then and as now, the people who will not lose (ie - bankers and government/politicians) can see no need to remove their blinkers.

    TruckerT
    According to Clapton, I am a totally ignorant idiot.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Pobby wrote: »
    A bubble, yes. This has a way to play out yet it is a bubble, one that was not allowed to deflate years back. Printing money, silly low interest rates to keep it all going, deficit coming down, I don`t think so. Those on smaller incomes having to have government support to pay the inflated rents.

    Last housing bubble was under Thatcher. Certainly no manipulated low interest rates.
    Correction. No money has ever been printed.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Blacklight wrote: »
    I like the part where he says: the chances of seeing another housing market bubble are "extremely slim."
    It's obviously a very important part that the frothers ignore once they saw the word bubble in the article.
  • ILW
    ILW Posts: 18,333 Forumite
    chucky wrote: »
    Correction. No money has ever been printed.
    Created then.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    Created then.
    Actually one type of debt was replaced using another asset class to improve liquidity.

    That's not creating or printing money or supporting house prices like some characters on this forum think is reality.
  • blisk3
    blisk3 Posts: 204 Forumite
    Bubble is oN !
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    edited 2 November 2013 at 10:09PM
    chucky wrote: »
    Actually one type of debt was replaced using another asset class to improve liquidity.

    That's not creating or printing money or supporting house prices like some characters on this forum think is reality.

    Improving liquidity and helping reduce interest rates doesn't assist the the ability to lend (and continue to) at affordable rates?.

    Next you will say that it won't affect long term inflation.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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