In both 2007 and 1991, house prices fell 20%, will see something similar this year? The really interesting question is whether house prices return to the post-war levels of affordability like after the crashes of 1990 and to a lesser extent 2008. Will The House Price Crash Be Like 1991 and 2008?Watch this video on …
Bank bailouts are back. But, why do governments go to such lengths to save banks who took risks, ignored regulations and made a loss? This title about bank failures destroying the economy is not actually linkbait title. I think it is fair to say, the US bank failures of 1930-33 really did destroy a good …
In 2008, the world global banking system went into meltdown after the bankruptcy of Lehman Brothers. It stemmed from a toxic combination of falling house prices, rising interest rates and sub-prime mortgage debt. To relive the 2008 Credit Crunch – see this article on Credit Crunch Explained (which was one of my earlier articles as …
The UK housing market is something of a national obsession. But, it faces numerous problems High prices (especially affecting younger people) High cost of renting – Shortage of properties Decline in birth rates due to high living costs Concealed households – people having to live with parents Inequality Volatility of prices Homelessness Since the early …
Last week, the Nationwide reported a sixth consecutive monthly fall in house prices. They are now 6% down on last summer’s peak with buyers able to get an average £14,000 off the asking price. Annual price changes are falling at the fastest rate since 2012. Yet, some analysts wonder if the worst is already over? …
UK bond yields are the rate of interest received by those holding Government bonds. Governments sell bonds (also called gilts) via the Debt Management Office to fund their budget deficits. Bonds are a way for the government to borrow – a bit like the government taking out a loan. Government bonds are frequently traded on …
Summary of Phillips Curve The Phillips curve suggests there is an inverse relationship between inflation and unemployment. This suggests policymakers have a choice between prioritising inflation or unemployment. During the 1950s and 1960s, Phillips curve analysis suggested there was a trade-off, and policymakers could use demand management (fiscal and monetary policy) to try and influence …
Many young people will understandably be hoping and praying that there is a substantial fall in UK house prices to make them affordable and escape the broken rental sector. However, if there is a serious house price fall, there is a real danger this would push the UK economy deeper into recession. In the last …