UK 05:59 Saturday, 19 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
I gave this presentation in Clerkenwell last night. I am not predicting a crash but I am suggesting that the debt and QE bubble is only starting to unwind and will go much further
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Comments
BLUEFREW
It’s a pity more people don’t understand the bubbles that QE has caused. If they did the people responsible for these misguided policies would be hanging up by piano wire.
The property bubble should be obvious to everybody, but there is no end of people who will tell you that there is no bubble.
But it’s not just in property. Banks have taken the QE money and invested in ‘emerging markets’. New mines. Oil E&P, steel plants, aluminium smelters, etc. You name it, easy money has built. The result is that we now have massive overcapacity in oil, steel, aluminium, copper and just about everything else. Even if China was not slowing down or in recession, the price of commodities would still have fallen, because we have massive overcapacity.
In the UK that means that keeping a roof over your head is shockingly expensive thanks to QE. Workers in many industries are now in competition with places that have cheap workers and new plant, thanks to QE. Now that we have massive overcapacity, thanks to QE, where would you start removing capacity? Keep the old plant with expensive workers or the new plant with cheap workers.
The housing market is a slow moving and illiquid market. It’s time will come. But we are already seeing the results of the massive malinvestment which QE has caused. But it seems like the ECB and the Bank of Japan have decided that what is needed is more QE.
phil
The definition of an American and/or British economy is an economy where the only people that haven’t got a clue as to what is going on are the people that run it