I’d think we’d have a sharp drop in house prices in the next year. Inflation in the form of Commodities ( think milk, meat and eggs ) will slowly rise over time, housing will drop slowly and in ~5 years we will be back to where we were in historic terms – we’d spend relatively less on housing and more on food and make a little bit more than now for the same type of work and be firmly set in an inflation cycle for everything except housing. That is likely to the the real bottom for housing. 2011 or so. Then housing actually starts to reverse course and joins in inflation at right about under the rate of inflation as it has done historically.
The slow drop like japan cannot happen here cos our savings rate is pathetic. Its negative, they are at like 15% average isn’t it.
Cool.
Cow_tipping.
