MajorDutch
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yield @ 7.41 once above 7.3 none of the other PIIGS recovered, is it now a death spiral for Italy???
Yes.
I don't see UK housing (lower end) taking too much of a beating. I live in a university town and many of the houses here are under-priced on a basic discounted yield basis and I hear it's a similar story throughout much of the country. High end seems to take care of itself anyway as footballer salary types seem to keep buying no matter what. London high end has held up extremely well and all this ex-dictator money is flying about like nobody's business. Personally, I'm expecting the gap between lower and mid priced properties to tighten to a level where those who aren't over-leveraged can trade up relatively painlessly.
That being said I've been hearing about cross-generational 50 year mortgages at work lol.
Outside London I can see prices reverting to 3.5 x average salary, I think the wheels will come off.
Tough question... Don't see inflation, but it's gonna be pretty tough going and the world's gonna feel like sh1t for a while. That's sort of my best case.so what u reckon will be the ultimate outcome? do you reckon super bailout followed by rampant inflation OR chop eurozone down to German, France & Benelux and cut the others adrift. I am thinking the former and inflation and gold will go off the scale. We then raise interest rates in the UK to counter and then the housing market here get's body slammed. what u sayin?
so what u reckon will be the ultimate outcome? do you reckon super bailout followed by rampant inflation OR chop eurozone down to German, France & Benelux and cut the others adrift. I am thinking the former and inflation and gold will go off the scale. We then raise interest rates in the UK to counter and then the housing market here get's body slammed. what u sayin?
I dunno... We're talking about a calamity, so pegs might be needed, but who knows. The yield/financing problem disappears if you have your own ccy that you can freely devalue.@ MG - Do yo think that a lower EC ejection from the monetary union would require currency pegs? Isn't it likely that anyone who is ejected is gonna have inflation issues... and the yield/financing problem isn't going to disappear either is it?
Pls feel free to explain where I am incorrect. Do try to avoid slogans, videos and quotes from various "important" and famous people and rolling your eyes. It would be nice if you could offer specific example, given how I can cite a whole multitude of them.The problems disappear with magic money printing...spoken like a true mainstream economist![]()
Pls feel free to explain where I am incorrect. Do try to avoid slogans, videos and quotes from various "important" and famous people and rolling your eyes. It would be nice if you could offer specific example, given how I can cite a whole multitude of them.
I dunno... We're talking about a calamity, so pegs might be needed, but who knows. The yield/financing problem disappears if you have your own ccy that you can freely devalue.
There's no point in arguing anymore with those who call for inflation. Just hope if it gets to that point, they undergo much financial suffering because of it.
You deserve everything you get.
Morality doesn't exist to these people.
This should be interesting :whistling
I'll have a monkey on MG winning