Pound sinking - deflation expected

[SantaClaus]

If less than parity then a lot of people will try to buy houses in London. With prices already down substantially can you believe how cheap it will be to get a flat in a big town for less than 500k dollars or euros? In many other european cities you don't get anything for that money. This should push prices up again and currency as well.

Prices in London may be cheap in £'s soon, but who wants to stand in front of an avalanche? And why buy cheap when you can buy even cheaper?
We've got a long way to go before people start buying even if the currency does make it look attractive.

Property looked cheap in the states ages ago, but no-one bought!

[Francko]

Prices in London may be cheap in £'s soon, but who wants to stand in front of an avalanche? And why buy cheap when you can buy even cheaper?
We've got a long way to go before people start buying even if the currency does make it look attractive.

Property looked cheap in the states ages ago, but no-one bought!

What do you honestly expect? 1 pound to 1 dollar? Historically the pound has never been any lower than now. I'd be surprised if we are too far away from the bottom. Then again nobody knows for sure else we'll be all millionaire.

[mrdonuts]

As long as its not going down agains the Remini then we'll still get our cheap goods. And UK IT will start to look cheaper to the American's...maybe we can finally start exporting again!

if you meant the yuan then it is 15 -----> 10

[SantaClaus]

What do you honestly expect? 1 pound to 1 dollar?

Lets ask that question again this time next year.

[MPwannadecentincome]

Historically the pound has never been any lower than now.

Historically it went down to $1.05 in 1985 according to http://www.miketodd.net/encyc/dollhist-graph2.htm

[d000hg]

Lets ask that question again this time next year.

See what happens once Obama is in the hot seat. I have a feeling I'm going to end up feeling sorry for him if it is too far gone to fix and he gets blamed.

[Paddy]

http://www.telegraph.co.uk/finance/f...s-deepens.html

Looks like Russia is going to be in the dwang as well. Well characteristically, the Kremlin have dispatched the police to deal with any "dissenters" so I guess unlike the whinging UK the Ruskys will just have to grin and bear it.

Pound is down in value againt the Rouble

http://finance.yahoo.com/currency/co...RUB&amt=1&t=1y

[bobhope]

Bognor Regis it is then next summer

Hey, that's my line.

Good news then: fewer Brits on the beaches.

[expat]

Historically it went down to $1.05 in 1985 according to http://www.miketodd.net/encyc/dollhist-graph2.htm

That's impossible. The Blessed Maggie was in charge then.

[SantaClaus]

That's impossible. The Blessed Maggie was in charge then.

It is indeed true.

However, the low we have to get to first before we hit parity is the June 2001 low of 1.3680.

I wish I could post a monthly chart of the pound here. It looks like Beachyhead, if you get my drift.