The outcome is that the majority of the worlds persons are of the type live for the moment, borrow today and spend today and hope to pay back never since tomorrow never comes. The governments of the developed world are a reflection of this mindset and are only too glad to have their backs massaged by their banking partners blind to the banks increasing dominance of financial control and usery of the populaces.
The outcome in the medium term appears to be that the indebted persons will be benefited by massive printing of money - that’s how best to describe it. (Quantitative Easing is akin to saying I won it on the horses when actualy one of my developer cronies gave me the dough).
The prudent will suffer. Their savings gathered and secured during the last 10 years are to be washed away by rising inflation.
I’ve mentioned bubble 3 here on the Pin a few times over the past few months.
Bubble 3 is just around the corner.
Property prices will very very slowly decline but there won’t be any huge price drops since
a. the banks won’t instigate forced sales since there’s no one to buy the propertiies anyhow
b. the valuations on forced sales would force the banks to own up to massive undercapitalization that they are already working hard with their governments to deny
c. all the savings combined can never pay off the debt anyway.
I’m on the verge of pushing myself to cautiously go ahead and make a buying decision over the next few months. I do agree that prices will bottom not now but later but essentially I don’t believe that the outcome will be any good for me if I save (at 3% and inflation is runing at 10% in real terms)…