Bear turns too soon
Dominic Frisby, who writes for our free daily email, Money Morning, caused a bit of a stir on the MoneyWeek website last week. Fed up with the inconvenience of renting, and tempted by the sheer cheapness of money, Dominic – a rampant gold bull and property bear – confessed he was thinking of buying a house. His piece – Why the world’s biggest property bear may be buying a house – has drawn a record number of comments – read it, and have your say.
You can see why Dominic, and any other renters forced to remain in London, might be despairing right now. Despite record low interest rates, house prices in much of the rest of Britain remain well below their 2007 peak. Yet central London remains robust – indeed, ‘prime’ areas are now even more expensive than they were before the crash.
However, perhaps Dominic shouldn’t be so hasty. Amid the – entirely justified – outcry over bank bonuses, we’ve pointed out several times that the fundamental problem is that banks were able to make the massive profits that sustained those giant pay packets in the first place.
• Read the full editor’s letter here: Bear turns too soon.