Comments: Hawks or doves?

Hawkes or Doves?......Twin or Spin!

Dear David,

Remenber 9th September 2001 yes thats right only 6 years ago, A heinous terrorist crime was commited in the heart of financial America. The economic damage was such that in the aftermath monetary intervention created the foundation of the mother of all booms, with interest rates set both in the US and UK at levels never seen before. The public readily borrowed and consumed to the benefit of their respective economies, avoiding impending recession.The popular effects were so much to the liking of politicians that the required monetery intevention was extended indefinately. It is prudent to state that at that time there was no shortage of property here or in the US. Speculative aquisition of all asset classes ran rampant.....and soon inflationary effects could no longer be masked. The US market as always being driven by market forces was the first to enter its adjustmet period of deflation and devaluation. The UK due to its labour government could not and would not face the humiliation of the inevitable economic adjustments. As always with labour a catalyst from outside was going to be blamed for the financial hardships inflicted on their population. Labour with its spin machine had allowed lax financial regulation as in the States to run riot.
Such was the control of media and so called ojective information channels that the bulk of the population actually believed that one type of asset class over all others would always go up in price.
History is littered with such mania from Tulip bulbs to Dotcons and
beyond. Fundamentals in economics are cruel and always favour the minority.....how much was the percentage increase of homeownership again?....since 11/9/01.

Best wishes

Arik Schickendantz

P.S ever tried to liquidate in a panick stricken market?

Posted by Arik Schickendantz at March 28, 2007 11:37 PM

Sorry Arik, the 9th Sept 2001 passed me by. I recall that a couple of days later a group of predominantly Saudi men flew three planes into targets in Washington and NY and a fourth into a field, but can't recall what happened on the 9th.

Which reminds me, my mother used to say she would look at jumbo jets and wonder how on earth great big metal things like them stayed in the air.

I feel much the same about the housing market at the moment, indeed I've felt much the same about the houising market for some years.

However there are people like Mr Smith who'll explain the physics of this inflated market much as there are people who'll happily lay out the economic theory that explains jet powered aircraft - or is it the other way round?

I've long ago given up trying to rationalise the housing market - why rationalise the irrational?

Posted by Jonathan at April 1, 2007 08:10 AM
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