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Right, the inflationary spiral could have been prevented by raising interest rates  as soon as the trend established himself. But there were too many people making money out of that.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Migeru (migeru at eurotrib dot com) on Sun Apr 6th, 2008 at 06:02:52 AM EST
[ Parent ]
Also, buy-to-let has been the vehicle of a large number of tax avoidance schemes, due to a failure to close various loopholes, which kept buy-to-let going far beyond simple arbitrage of rents vs mortgages.
by Metatone (metatone [a|t] gmail (dot) com) on Sun Apr 6th, 2008 at 09:05:15 AM EST
[ Parent ]
ABN Amro have an interesting report

 Home Truths

which I have yet to digest fully....

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Sun Apr 6th, 2008 at 09:30:35 AM EST
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