Monday, 14 September 2015

ASSET PRICES TO FALL?



Ambrose Evans-Pritchard reports that the Bank for International Settlements (BIS) is worried that the world has too much debt.

Since 2007, combined public and private debt in the the developed economies has jumped by 36 percentage points to 265pc of GDP.

"Global debt levels are dangerously high and central banks cannot keep the game going indefinitely."

An increase in interest rates by the US Federal Reserve could create an economic crisis.

BIS fears emerging market maelstrom as Fed tightens.

If the 'bubble' bursts, there could be a drop in the value of various 'assets' such as gold, shares (equities), bonds and houses.

Banks are worried?

Deutsche Bank plans to cut staff by 25pc



The above graph shows that currently the price of bonds, shares and property is above historical norms.

According to Deutsche Bank, there is the chance that profits or valuations will return to their historical norms.

If that happens, Deutsche reckons the average real return from equities over the next 10 years will be negative. 

The same is true for Treasury bonds, European corporate bonds and American residential property.

Read more: http://www.afr.com/

19 comments:

  1. http://xymphora.blogspot.com.au/2015/09/adventure-tourism.html
    "Britain’s Labour Party ditches the Israel Lobby" If you look closely you'll see that much of the wailing over Corbyn is Jewish. They know that a true progressive leader is not 'good for the Jews'.
    http://www.theoccidentalobserver.net/2015/09/britains-labour-party-ditches-the-israel-lobby/

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    1. When Hillary Clinton ran for the senate there was much wailing about her being "anti-semitic" from the usual suspects.
      Her daughter Chelsea married a jew,which is not surprising since her mother is also Jewish.
      Well what about the controversy surrounding Hillarys anti-semitism?.It was just a big act.

      Prior to Chuck Hagel being appointed there was HUGE controversy about him being anti Israel.
      Hagel is a Jew.

      Corbyn...just bide your time and he'll show his true colours.
      The fact that he AND his wife are jews,yet keep this fact secret shows he is not on the level.
      Just wait for Corbyn to be elected PM...and don't ask for your money back when he fails to deliver.
      Meantime he is very pro third world immigration into Britain...this policy is one of the key features of the jewish elites strategy for control..AND it goes against the wishes of the majority of people living in Britain,although you would never guess this from the media...and Jews control it lock stock and

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    2. Corbyn is married for the 3rd time. Which one of his wives is Jewish? The current one is too?

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    3. "Meantime he is very pro third world immigration into Britain...this policy is one of the key features of the jewish elites strategy for control..AND it goes against the wishes of the majority of people living in Britain,although you would never guess this from the media...and Jews control it lock stock and barrel."
      I agree with this part completely. But in my opinion it does not matter whether a person is a Jew or not, what matters is what they do.
      Chuck Hagel stood up against the Zionist lobby and he was part of the team that chose not to bomb Syria and end the catastrophic cycle of regime change operations based on total lies.
      As far as "Corbyn...just bide your time and he'll show his true colours." goes you may well be right about that and the lack of action regarding child abuse in his constituency is very disturbing but at least there is a Labor leader who is not simply a yes man seeking Murdoch's backing and indistinguishable from the Tories such as Blair or Miliband or Brown.
      If Corbyn's leadership can be used just to promote a broader debate about NATO and Trident, it will have served it's purpose.
      Thanks for response.

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    4. "Labor" is the American spelling of Labour.....

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  2. http://www.globalresearch.ca/the-age-of-the-image-simulated-realities-the-image-oriented-way-of-viewing-the-world/5475954

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  3. All debts are by definition an asset of someone or something else. The bigger question is can supposed law and order survive the chaos of worldwide default by the private individuals and governments if they raise interest rates, my guess fwiw is that low interest rates in the western world are here for another decade. Debt has long surpassed religion and entertainment as they very best way to keep us proles under the thumb.

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    1. There is a tipping point and it comes when the Fed directly starts selling from its balance sheet WHICH WILL NEVER HAPPEN E V E R ? In the distant past (2007) after the last rate hike in 2006 the Fed continued to " jawbone" rates higher and it continues to this minute? Within seven years the FED has used this MEME to accumulate trillions in BALANCE SHEET ASSETS of MORTGAGES both public and PRIVATE! The housing collapse was about future interest rates and seven years later the fed is still BUYING EVERYTHING! A quarter of a point slows the accumulation of our assets not even a little as AMERICANS ARE SCARED OUT OF THEIR SOVEREIGN RIGHTS BY A QUARTER OF A POINT!

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  4. http://fortruss.blogspot.co.uk/2015/09/lavrov-us-knows-isis-positions-refuses.html

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  5. New Australian PM IS a crypto jew...as it turns out (see thetruthseeker...re satanist..re report in Israeli newspaper).
    This means a definite on MORE involvement of Australians being used to attack Syria on behalf of the Jews in Israel.

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  6. http://www.dailymail.co.uk/news/article-3234044/The-Brazilian-town-girls-young-11-RAFFLED-paedophiles-star-prize-underage-virgin.html

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  7. Hiya aangirfan! How's u 2day. Busy as always I see!
    I've jst published new blog.
    Would u mind checking it out if u've 5mins 2 spare??

    https://spidercatweb.wordpress.com/2015/09/15/dear-mr-president/

    Much appreciated. xx

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  8. I'm not religious, but I've prayed that Corbyn is for real. But if he turns out to be a closet Zionist, it would be a good way to gut what little hope and faith people have in the system.

    BTW, it's 9.15, the official end of 'Operation Hade Helm.' How many have been imprisoned in those Wal Mart cells like some fear mongers, like the sordid Dave Hodges, was ranting about?
    Called him out for his fear mongering and for that, was banned for further comments on his $$$$ web site.

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  9. "the Bank for International Settlements (BIS) is worried that the world has too much debt."

    Well we just have to follow Boxer's lead and work harder then. More hours. Give up more of our time on this planet to paying off bankers.

    I guess this is the post-spending blue period, when the bill comes due. Except... I don't recall any personal wild times of fast living, making it rain in strip bars, buying pure Peruvian coke by the kilo and traveling the world like a politician, first class, baby!

    No, I don't recall those days. Maybe I've just blacked them out. I've heard a lot of hard livin' can do that.

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  10. http://www.globalresearch.ca/seven-years-since-the-wall-street-crash/5476212

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  11. http://www.globalresearch.ca/washington-wants-regime-change-in-ecuador-what-is-the-cia-planning-before-ecuadors-2017-elections/5476107

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  12. currently the price of bonds, shares and property is above historical norms. ...

    According to Deutsche Bank, there is the chance that profits or valuations will return to their historical norms.


    Here's one way that return to historical norms may happen:

    The Coming Great Inflation and Asset Price Collapse

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  13. This is the intended destruction of the world wide economy as I am sure most here know. Unfortunately we are all subjected to this economic soap opera until the victim flatlines for good. The end of the petro dollar is at hand at some point. That the countries of the world have put up with this tyranny for so long is shameful.

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