Debt Bomb: Fears of housing 'fire sale' as interest-only loans roll into principal plus interest

I hope you are right,Rolf..
But from what I have been reading about the strong US economy ,with that also comes the fears of rising inflation and faster then people think Federal Reserve rate hikes,which also may affect us treasuries and investment x- grade corporate bonds..Plus US based companies are borrowing more and with that their interest rates are rising faster in line with their incomes..maybe just fake news but when inflation comes into play its the
elephant in the room ..

 

Chances of inflation are slim indeed. Inflation is not a bad thing. We need it to start rising 3%-4% would be ideal. Stagflation is way worse than rising interest rates.

 

I already feel like we are in stagflation - my wage hasn't gone up much but the food has.

 

I think you have your terms mixed up as stagflation is high inflation and low growth. PS: some economists question whether deflation is actually a bag thing.

 

Often accompanied by high interest rates and unemployment. We had stagflation in the 70s and early 80s. It means the state's keynesianism has stopped working, which is why they switched to fiscal rectitude and monetarism for a while in the late 80s and 90s. Keynesianism is back in fashion.

A return to high inflation would definitely be good for bitcoin.

Any central bankers among them? or are they still talking about helicopter money?

 

Agree with you Wylie, I think most would try and cut down on discretionary spending.....IMHO only!

 

Agree, if PPOR own around 70-65% and even if all investors sell 30-35% then most of us still need to live somewhere, and have a roof under our heads no matter what.... While most don't need to hold any stocks and baby boomers can start pulling out more as a larger % retiring and relying on some form of pension or higher % pull out from Super the older they get. That's how our system is structured so I just look in simple terms, perhaps I am wrong?

 

High inflation would favour property investors too!