UK: Raise Interest Rates or Face Economic Disaster
March 13th, 2007Via: Daily Mail:
Interest rates need to go above eight per cent to control booming house prices, a leading economist has warned.
Martin Weale said that unless the property market is restrained it will suffer a crash, devastating those who look upon their home as their pension.
He spoke out as official figures revealed that average prices are rising by more than £4,100 a month. If they kept up this pace, they would leap by almost £50,000 this year, more than double the average worker’s salary.
Mr Weale is director of the long-established National Institute of Economic and Social Research, which advises both the Treasury and the Bank of England. He believes the property market is a “bubble” which is turning into an economic “disaster”.
Posted in Economy | Top Of Page
This Mr. Rogers will no longer be your neighbor if you live in NYC. Buh Bye.
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=managerMoves&storyID=2007-03-15T074443Z_01_ZWE468140_RTRUKOC_0_MARKETS-ROGERS.xml
“Commodities investment guru Jim Rogers stepped into the U.S. subprime fray on Wednesday, predicting a real estate crash that would trigger defaults and spread contagion to emerging markets.
“You can’t believe how bad it’s going to get before it gets any better,” the prominent U.S. fund manager told Reuters by telephone from New York.
“It’s going to be a disaster for many people who don’t have a clue about what happens when a real estate bubble pops.
“It is going to be a huge mess,” said Rogers, who has put his $15 million (8 million pound) belle epoque mansion on Manhattan’s Upper West Side on the market and is planning to move to Asia.”
did you see this?: http://bullnotbull.blogspot.com/2007/03/jim-cramer-explains-massive-insider.html