Reply to: Hold off the purchase...

[PurpleGorilla]

Hold off the purchase...

Like many, you'll probably also miss the next boom. I don't mean to be harsh, but perhaps its just your personality that doesn't allow you to invest or take chances.

There is definitely some truth in that.

But as a fresh millennium graduate; the ship had already sailed. £15k p/a and student debt was a barrier to even a one bed flat in Aldershot by that point. Then 15 years of leverage.

[BrilloPad]

Like many, you'll probably also miss the next boom.

At some point it is going to blow up. Probably not in the next decade though!

[ChimpMaster]

+ 1

Having missed the dot com and house price bubbles, bring it on. I've been waiting 15 years. Thanks new labour. Tw@ts

The 2008-10 global financial crisis was a wet fart. A fore tremor, for what is to come.

"With our fiscal prudence... An end to boom and bust..."

Gordon Brown

Like many, you'll probably also miss the next boom. I don't mean to be harsh, but perhaps its just your personality that doesn't allow you to invest or take chances.

[BrilloPad]

I remember one economist talking about future food crisis, his advice "get some land, build a wall round it, then get a shotgun"

Personally I think three new taxes are needed;

A landlord tax (a fooken massive one)
A baby boomer tax (an even more fooken massive one)
A tax for all the London centric Luddites working at the BBC

Good idea! We could call it inflation...

[PurpleGorilla]

Hold off the purchase...

Its called Japanification. All the cash is being hoarded by the rich - in assets or offshore accounts. There is no velocity of money.

Depression here we come. For the poor it has been around for a while.

+ 1

Having missed the dot com and house price bubbles, bring it on. I've been waiting 15 years. Thanks new labour. Tw@ts

The 2008-10 global financial crisis was a wet fart. A fore tremor, for what is to come.

"With our fiscal prudence... An end to boom and bust..."

Gordon Brown

[PurpleGorilla]

I remember one economist talking about future food crisis, his advice "get some land, build a wall round it, then get a shotgun"

Personally I think three new taxes are needed;

A landlord tax (a fooken massive one)
A baby boomer tax (an even more fooken massive one)
A tax for all the London centric Luddites working at the BBC

[BrilloPad]

Jeremy Warner: How Iraq has left us with the biggest financial bubble in history - Telegraph

What Iraq did was set the stage for the final, disastrous, blow-off in already grossly inflated financial markets. In the process, advanced economies became almost wholly dependent on cheap debt to support growth. It wasn’t just mortgages and credit cards; governments also used the easy money environment to take the lid off spending or, in America’s case, cut taxes.

Fast-forward to today, and we find a world even more awash with central bank money printing than it was back then. It’s hard to argue that this was the wrong response to the financial crisis. The alternative of mass liquidation was tried in the 1930s, and it is fair to say that it did not end well. It is also true that contrary to much prediction at the time, it has not proved particularly inflationary.

One thing it has done, however, is put a renewed rocket under asset prices. From fine art and metropolitan property prices, to bond markets and equities, seemingly everything has gone through the roof. This at a time when income growth in many advanced economies has slowed to a virtual standstill. Global debt, on the other hand, has continued to rise at a frightening pace. If there is one thing we have learned from the history of credit cycles, it is that big debt overhangs tend to be economically highly toxic, especially in a lowflation, slow-growth world when the normal process of debt erosion via higher prices and incomes becomes impaired.

The financial crisis should have been a cathartic, cure all event. It has not proved so. The folly of men, and the debt markets they create, continues largely unchecked.

================
Yet another reason to bring the war criminal BLiar to trial.

[BrilloPad]

In the long term I think we are headed towards a 'Limits to Growth' type scenario, in which case all previous assumptions about how the economy works will be thrown out the window.

Of course governments could realize that if there is more money go round(for businesses and individuals) then there would be more money for everyone to spend.

Actually forget it - it will never happen - you are right...

[alphadog]

In the long term I think we are headed towards a 'Limits to Growth' type scenario, in which case all previous assumptions about how the economy works will be thrown out the window.

The truth is that no one has a good handle on how the global economy will operate in the long run. We are basically all loaded into a runaway train without a driver - the central bankers and politicians have some switches and knobs which they can push and jerk on from time to time but they are in the rear carriage and they can't see what's coming

As for now, I wonder when we will see the first negative mortgage interest rate deals appear? Bit of a mind bender. Did anyone predict that mortgage interest rates would go below 1pc like they have for some limited deals in the UK today? (Not me, BTW).

I predict that the govt/BOE will commence a new scheme whereby public infrastructure projects will be funded in such a way that they will never be paid back... ie, the Robert Mugabe school of printed pork barrel spending. If they do, at first it will work remarkably well for long enough that critics are confounded, until eventually the addiction will start to get out of control

[DimPrawn]

http://www.ft.com/cms/s/0/566bd07c-f...44feab7de.html
Ferrari 250 GT California Set To Break Auction Records | Digital Trends

The hyper rich are piling their immense stockpiles of easy money into hard assets, they know that a tsunami of cheap money is going to lead to hyperinflation and it's better to own something that a trillion $$$ of worthless paper.

[BrilloPad]

I remember many on CUK prophesying QE would lead to hyper inflation.

It has led to hyperinflation, massive inflation of global assets such as property, bonds and the stock market.

Its called Japanification. All the cash is being hoarded by the rich - in assets or offshore accounts. There is no velocity of money.

Depression here we come. For the poor it has been around for a while.

[OwlHoot]

CPI figures are a complete lie.

It's unusual for an official lie to indicate an unfavourable situation, unless deflation is actually worse than they are claiming!

[Ticktock]

CPI figures are a complete lie.

As DP hints, where's housing, energy, fuel, food?

You can argue about the methodology, but you then went on to spout bollocks.

Yes, housing is excluded. I guess there is the argument that as house prices go up and home ownership goes down then this becomes less relevant to the population at large - I don't think that's true yet, but rental is becoming more and more common.

Food is included - KFC is part of the bundle used for assessment.
Energy and fuel are included.

[SantaClaus]

CPI figures are a complete lie.

[BrilloPad]

So what is exactly getting cheaper (causing deflation)? Is it housing costs, energy, food, transport?

NLYUK is having a sale.