Monday 3 November 2008

A Recession with Inflationary + Deflationary pressures is heading our way

From my little studio flat in Rue de Longchamp, Paris, as I take stock of the financial markets and what is to come:
The de-leveraging of excessive debt and credit in the financial markets is far from over.
Faced with a likelihood of recession, central banks around the world are cutting interest rates aggressively, very likely to spark inflationary pressures for raw materials.
Assets like properties, equities will suffer severe deflation of prices as consumers and corporates shore up battered balance sheets and try to recapitalize.
A new world awaits.

2 comments:

Unknown said...

Even in S'pore, private property financing has come to a standstill. I wonder how those who got their property in the height of the boom are coping with increasing interest rates.

Now is indeed a good time to buy in if you have available liquidity.

Eaststopper said...

Now may not be the best time. My boss told me the best time to buy is when there is no-one left interested at all at the asset. I thought that was truly a brilliant advise but that day may never come ...