Tag Archives: housing market

Home price falls threaten China’s capitalist communism

While all eyes are on Italy, the world’s second-largest economy is showing signs of trouble. China, this curious mix of communism and capitalism, is running out of steam – and ideas. Unless the Chinese government finds new ways to stimulate its economy, it might find itself facing the world’s biggest revolution.

Continue reading

The safety of housing as an investment is about to be tested

The price growth of an “asset” into which investors everywhere around the globe have poured billions since the financial crisis has slowed dramatically, and this should worry policymakers.

Continue reading

Cooling housing markets will prevent interest rate rises

Housing markets in certain developed economies are beginning to lose steam, prompting worries that house prices might see corrections, especially in countries where they had been overheating.

Continue reading

Central banks have bad news for property investors

As the major central banks are slowly retreating from their policy of asset purchases, we will probably witness some of the side effects of this withdrawal.

Warren Buffett famously said that “Only when the tide goes out do you discover who’s been swimming naked.” The tide is going out only slowly, but we are beginning to see, at least in the UK, the damage the ultra loose monetary policy has done.

Continue reading

Brexit voters blame the wrong foreigners for the London housing crisis

One of the main complaints of some of the “Leave” voters was that Britain is a “small island” and it is “full up.” Immigration “puts pressure” on local services such as hospitals and schools, but, most importantly, on local housing.

Even Prime Minister Theresa May, when she was Home Secretary, said immigration was putting pressure on the housing sector.

Intriguingly, however, it seems the kind of foreigner whom the UK government welcomes is the foreigner who buys homes but never lives in them – the foreign investor.

Continue reading

Brexit masks London’s status as safe haven for corrupt money

The Brexit vote must be manna from heaven for those seeking to hide their illicit gains in London. Busy with all their posturing and negotiations, politicians will have no time to curtail the criminals’ activities.

Continue reading

Theresa May indicates she is unwilling to solve the housing crisis

Many people hope that the UK Prime Minister’s rhetoric calling for a fairer society means she will address what is by far the biggest inequality in today’s Britain: the housing crisis. But a recent speech, in which she outlined her plan for Brexit, seems to indicate that she is unwilling to really tackle the issue.

Continue reading

Central bankers are trapped by their own policies

It’s unclear when it all started, but it has reached the point where it would make the biggest banker of all times, John Pierpont Morgan, turn in his grave.

Continue reading

Post Brexit, loss of ‘coolness’ is the hardest to price in

The way the markets have reacted to Brexit, you’d be forgiven to wonder what the fuss was all about.

Continue reading

UK house prices will hurt the economy even if they keep rising

Another trick to keep UK house prices rising is taking center stage: the extra-large mortgage. It’s the mortgage lasting half a lifetime, or more, which allows you to buy a home even if, under normal circumstances, you would not afford it.

Continue reading