High interest rates and falling house prices will fundamentally alter both the housing market, and also the economy. The last two house price crashes co-incided with two deep recessions and if prices fall as much as expected, it will worsen an already weak economy. But, it is not all bad news, falling prices could be …
The economist recently warned that governments are living in a fiscal fantasyland, failing to confront dire and growing levels of debt. High inflation and rising interest rates have caused a surge in debt interest payments. By next year, the UK’s debt service payments will be similar to the entire education budget. It is a similar …
In the past 12 months house prices have fallen 16% in Sweden but have risen 4% in the US Yet both housing markets share similarities of overvalued prices and higher interest rates. Global House Price Crash – Where will Prices Fall?Watch this video on YouTube Why is there such a big difference? After a …
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 …
Is the UK housing market fundamentally overvalued? Is the UK Housing Market Really A Big Ponzi Scheme?Watch this video on YouTube Recently, I came across an interesting video which likened the UK housing market to a giant ponzi scheme. But is UK housing like a pack of cards waiting to tumble or are the outrageous …
Last week I accompanied a friend with a broken arm to a local hospital. We arrived 8 pm, but we didn’t get seen until 5 am. This kind of experience is typical of the recent surge in waiting lists that we have seen in the NHS. We can see it in waiting lists for A&E, …
A look at the economic impact of falling house prices. Readers Question: Explain why a decrease in the price of houses can lead the economy to experience a recession. In summary: falling house prices reduce consumers’ main form of wealth. This tends to cause lower spending and lower economic growth due to a negative wealth …
Over the next few decades, the Indian economy is forecast to become one of the world’s fastest-growing economies – adding an estimated $400bn a year to its GDP. During the twentieth century the Indian economy often struggled to increase living standards, but in the past decade has started to throw off the shackles of colonialism, …