Tighter credit means property values will suffer
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credit, credit crunch, property values February 25th, 2008Crisis, what crisis? If you talk to businessmen and consumers you get the impression that, outside the arcane world of high finance, things are not too bad. So is what is going on a mere financial panic with scant relevance to the rest of us? And could the supposed risk of recession be a mirage?
In his weekly column, Roger Bootle sheds light on the UK and world economies.
There is no doubt that the man in the street already feels some pressure, but it is coming mainly from higher inflation, not the credit crunch. With average earnings increasing by less than 4pc while inflation, even on the widely disbelieved CPI measure, is running at 2.2pc, the growth of real incomes is clearly small. On the RPIX measure, inflation is at 3.4pc and that means that real incomes are hardly growing at all. For many people they are definitely falling.
Tags: credit, credit crunch, property values
