Sunday 21 February 2016

Paying The Price


We may think that the next four months are fully booked for our attention, but out there the world goes on and is full of nasty surprises.  At home too there are other matters, one being property that is coming to be at the heart of so many problems.

This longish article from the LSE is about "doom loops" in the way our banking system and property market works, or rather does not work.  The implications given a government in hock to the banks and an economy increasing relying on the interaction between banks, debt and property is scary.

The picture above is taken from Zero Hedge, "A Photo Journey Through The Ghetto Of East Baltimore" where 16,000 houses have been abandoned.  There are many other urban areas in the USA were the same can be found.

Could it happen here?

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