The first year of the new decade begins with markets in a much more exuberant mood than at the beginning of 2019. Some of the world’s most important stock markets reached record highs in the last month of 2019 — but do investors feel that markets have peaked?
There’s no easy way to put this: the central banks are like the naked emperor in the well-known story. And the only solution that could save us from the next recession is so politically sensitive that it will not be put into practice.
The UK housing market is one of the most fascinating in the world. With prices well above their 2007 peaks in London and the south-east of England, more and more people say it is a bubble waiting to burst. And yet, there seems to be no shortage of buyers.
The story on the need to bail out households just like we bailed out the banks has sparked some controversy. To some extent, this was to be expected – but the truth is that forgiving household debt is the only real way out of the crisis.
The UK housing bubble endangers the future policy stance of the Bank of England and could even lead to social unrest over the long term, a strategist with RBS warned on Wednesday.
The UK government brought forward its “Help to Buy” scheme, designed to help home buyers climb the property ladder by offering them taxpayer-subsidised loans for 20% of the price of homes cheaper than 600,000 pounds.