Thanks interesting! So any predictions on the yieldsā¦
That is easy, the bonds yields will rise. The question is when. 
(And how it will rise, the Central Banks communication will be an important tool to that.)
Low interest rates must be only strictly the necessary time to help the recovering of the economy.
I compare low interest rates and QEs as drugs that creates dependency, too much time will make more harder to normalize the interest rates. The companies, financial markets, governments and the economy in general will be addicted to a low interest rate environment. Low interest rates creates incentives to borrow more, including the government debt.
@RLX
Thatās the big problem it creates a feedback loop and we get stuck.
Low interest rates more gov dept, house prices rise faster as cheap money is here for longer.
Tiny increase of interest rate and %x of people and comapines go underā¦
Good analysis, like u said the longer we satay with them the longer we can leave the Low rates.
Let them go bust, ever heard of slash and burn. We should stop trying to support everyone and save everything at others expense. Thatās my view, stop bitty bitty.
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I remember the banking crisis in 2008. Watching RBS dropping daily. At the time I was conflicted about whether to bail out the banks. Those were exciting times.
Ripping the Band Aid off will also likely shorten the Recession as well as Newer Companies come on board, creating new markets and jobs as well.
Low Interest Rates scare me as I feel we are on the cusp of another Housing Crisis in the UK.
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Let see what they have to say why Inflation is low for such a long time.
Maybe a comparison with Japan may lead to more insight into the matter?
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@Tedk99 Seems to me āThe Economistā doesnāt really have a clue either 
Nobody really knows how to unfuck this. Sooner or later, Iām pretty sure experts will find out the problem is psychological somehow. Times are uncertain, capitalism is brutal and that doesnāt put people in a state of mind compatible with happy consumption.
I lived in Thailand for a couple of years and what struck me is that the safest place in any given city was the red lights district (with all the bars, nightclubs and prostitutes). Why ? Because in order to make money, you need happy customers and for customers to be happy, you need to get rid of any potential annoyance around (like thieves, gangs, etcā¦). So the police is always on the watch. The same must be true for our economy I guess. If you want people to consume your stuff, you need to make sure they are happy. People nowadays arenāt happy at all, the are anxious, angry, depressed and resentful. Not a very good mixture, is it ?
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No not a good mikture no.
But now u live in France?
I bet low inflation is here to stay for another decadeā¦ Like it did the past decade.
This in turn will āwriteā a new normal in peopleās heads and will stay like this for a while.
I mean itās bad long term as houses for example have rose in prices in the UK this year with about 5% but salaries are only rising by 1%.
If we where in a normal inflation of 2.5% a year and salaries will only rise be 1.9% a year we find that in 10 years we will be poorer then we are today.
So I can understand somewhat why there seems to be a break in this trend, but like u said no one can really understand what is happening.
Its like the stock market donāt try to predict or you get burned only jump on the positive or negative trend, but canāt predict bottoms or lowes.
Yeah I came back a few years ago already.
See thatās something I donāt understand. If you got an ageing population, fewer young people and a struggling economy offering low wages. How come are housing prices going up ? You should have more old people selling than young people buying so that should drive prices down. And young people donāt have that much money so that too should push prices down. I mean who is gonna pay for all those expensive houses as old people slowly move to nursing houses (or whatever you call the places where old people go when theyāve lost the ability to rely on themselves) ? You know ?
We have a channel here called ARTE. Itās essentially a culture channel of sort. The other day they had a documentary on saying that in the future weāll have to completely rethink the structure of our cities and that people should start to renovate their houses for energy efficiency.
I have no problem with the idea of having energy efficiency become the norm and city infrastructure being completely revamped BUT who is gonna pay for it ??? People are already up to their neck in debts when they buy a place and then they should renovate the entire thing + paying urban taxes to transform their city ? It doesnāt make any sense whatsoever to meā¦ 
Itās like our leaders want everything at the same time. They want cheap labor but they want home owners, they want to erase the debts but they want buildings and cities to be renovated. Pfffā¦ I mean how are we suppose to understand anything ? Itās constant double bind and cognitive dissonance with those morons 
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@Enlil What is your base city as a location in France ?
I donāt have all the info that you asked but:
- limited amount of houses
-more people live on their own
-more pressure on the housing availability
-people live longer occupy a hose for longer
-it reduces the amount of the houses on the market
-hence it is making them more expensive
-plus u have Airbnb to consider and investors and buy to let investors driving the prices up
This 6 minutes video does a good job at explaining it
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Imā not disclosing personal information on forums like this one as it could be use by for social engineering. You should do the same: the less information people have about you, the less likely they are to steal your identity and access your account. Might sound a bit radical but believe me, this is often how it works 
The video is interesting. However the british market is probably very different from continental ones. Youāre an island after all: surely it has an impact somehow. I donāt know. I guess weāll see if the bubble goes bust soon enough !
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RLX what do you make of the UK leading the vaccination race in Europe 
think this will give us a competitive advantage? EU is lagging appallingly, thatās Red tape for you. I think weāve administered more than the whole of the EU.
Smart bulls on the UK bro. One example of the competitive advantage we have, real life case study there. Also the fact we have our own vaccine and two huge pharma companies GSK and AZN.
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Where we not leading the EU before we joined and lost the leadership. Now we are out, the signs are beginning to show 
Order is being restored Michael. Bitty is no more.
So taking vaccine against covid is competitive advantage? 
Well yes, it means your economy is up and running before those that are still dealing with the virus. 2+2 = 4 quick maths. What happens if you try and source from a supplier who is on lockdown and canāt supply, you go to one who can 
then what would be temporary becomes permanent (especially if youāre moving tooling etc). Plus it means we borrow less as we donāt need the debt to subsidise the virus.
As long as we trade further afield I think the UK will and can be great again.
Iām just worried weāve spent too much time organising a trade deal with he EU when itās obviously going to happen anyway.
This time could have been better spent on other trade deals elsewhere.
If we do trade elsewhere this could also help our growth when the EU fails
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Morses has been a good shout so far mate
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How is it a competitive advantage derived from Brexit? The authorisation process we used was from EU legislation (as EU rules still applied until the end of 2020!).
The UK has hardly had a glowing record of protecting its citizens during the COVID crisis compared to the rest of the EU!