UK House Prices Growing Like Magic Beanstalk

[machinehead]

"House prices in the UK have risen by 26.2% over the past 12 months, according to the Nationwide building society, contradicting other reports that the market was stagnating. During March, property prices jumped by 1.9%, more than many anal cysts had expected."

 

Castles made of sand

 

It's like, deja vu all over again. In the late Eighties and early Nineties, rampant money printing ginned up a tremendous housing boom in the UK. A sharp-eyed financier named George Soros sussed out that something had to crack. Namely, the pound sterling, whose exchange rate against continental currencies was being managed in the European 'currency snake.' The snake turned out to be a 'dangling serpent' for the bulldog peso, which collapsed along with the UK's artificial boom.

 

If history is any guide, the pound sterling again will be the Achilles heel of the fragile paper-money paradise. There may be method to their madness: the europhiles would like to see the pound substantially devalued so that Britain can adopt the euro at a favorable conversion rate. A 'force majeure' market event serves to deflect controversy.

 

The UK's experience, both in 1992 and in the coming year, is a cautionary tale for its big brother America. The US also has been on a fantastic, reckless, incontinent bout of currency creation via Uncle Al and the GSEs. Something has got to crack. And it probably will be the dollar.

[mjkst27]

and so castles made of sand

fall into the sea

eventually.......

 

 

thanks for the history lesson, MH

 

many stoolies are much too young to know what was going on leading up to the "great 90's boom" in the US.

 

now where are my Jimi CD's

[machinehead]

now where are my Jimi CD's

Don't you mean LP's?

[Bird D Durr]

Tulip-Mania.............................

 

Modern Rome Boyz and Girlz...................