Reply to: BoE cuts rates!!

[rootsnall]

Invest in Japan now. Property prices there are recovering, the stock market is cheap relative to company earnings.

They've been saying the same for years, they are still stuck in deflation and the after effects of 20 years ago and each 'recovery' has never really got off the ground. If you think the Yanks are going down the pan then I'd keep your money under the bed instead.

[ChimpMaster]

I'm big in Japan.

Yeah they're not the tallest out there eh.

[DimPrawn]

I'm big in Japan.

[ChimpMaster]

Invest in Japan now. Property prices there are recovering, the stock market is cheap relative to company earnings, the Yen is recovering against other major currencies, and the country is normally contrarian to other economies.

[AtW]

decades a bit extreme. about 15 years in Japan's case?

Considering girls these days get pregnant at this age or earlier, this means 15 years is a generation of crap economy.

[BrilloPad]

Yeah, but it’s going to be different this time.




Do you recall what percentage drop it was in Japan? I recall hearing something like 80%, which makes 'huge' a huge understatement. What falls in house prices have the US seen?

I do remember that the centre of Tokyo was worth more than California. And 150 year mortgagues were common.

[TimberWolf]

Japan.

Boom years, huge growth in the economy, low unemployment, massive increase in property prices.

Then, growth falls and inflation rises. Interest rates cut, cut, cut, cut until zero. Still no growth and rising inflation (stagflation). Huge fall in property prices. Large rise in unemployment.

Result is decades in the economic wilderness.


HTH

Yeah, but it’s going to be different this time.

Huge fall in property prices.

Do you recall what percentage drop it was in Japan? I recall hearing something like 80%, which makes 'huge' a huge understatement. What falls in house prices have the US seen?

[FiveTimes]

Japan of 1990 like USA of 1930. Japan took 15 years to recover, USA took 25 years. But USA had a war to contend with.

The USA always seem to have a war to contend with

[BrilloPad]

Japan of 1990 like USA of 1930. Japan took 15 years to recover, USA took 25 years. But USA had a war to contend with.

[BrilloPad]

Japan.

Boom years, huge growth in the economy, low unemployment, massive increase in property prices.

Then, growth falls and inflation rises. Interest rates cut, cut, cut, cut until zero. Still no growth and rising inflation (stagflation). Huge fall in property prices. Large rise in unemployment.

Result is decades in the economic wilderness.


HTH

decades a bit extreme. about 15 years in Japan's case?

[rootsnall]

Japan.

Boom years, huge growth in the economy, low unemployment, massive increase in property prices.

Then, growth falls and inflation rises. Interest rates cut, cut, cut, cut until zero. Still no growth and rising inflation (stagflation). Huge fall in property prices. Large rise in unemployment.

Result is decades in the economic wilderness.


HTH

falls

deflation

[DimPrawn]

Does this sound familiar?

Japan.

Boom years, huge growth in the economy, low unemployment, massive increase in property prices.

Then, growth falls and inflation rises. Interest rates cut, cut, cut, cut until zero. Still no growth and rising inflation (stagflation). Huge fall in property prices. Large rise in unemployment.

Result is decades in the economic wilderness.


HTH

[Troll]

what happens when they reach zero but inflation still dropping?

didn't Japan have zero for sometime after it's property bubble burst?

[BrilloPad]

what happens when they reach zero but inflation still dropping?

[NoddY]

BTLs to survive another year .... I think not

Sterling to be pulped US Dollar style. Only poor people work for pounds.