Alert icon
We're changing our privacy policy. This stuff matters.  Learn more  Dismiss

Stagflation: Back to the 1970's

Loading...

Sign in or sign up now!
Alert icon
Upgrade to the latest Flash Player for improved playback performance. Upgrade now or more info.
2,237
Loading...
Alert icon
Sign in or sign up now!
Alert icon

Uploaded by on Jun 9, 2008

Panel 1 with this
Real house prices
In a stagflationary era
History is instructive
39% fall from 74 to 80
22 years to recover

Panel 2
Startling parallels
1970s vs 2000s
US war spending
Loose monetary policy
Caused global inflation
High oil prices

Panel 3 with
Eventually high interest rates
We forecast
40% fall in real house prices
Over 30 years to recover

Category:

People & Blogs

Tags:

License:

Standard YouTube License

  • likes, 0 dislikes

Link to this comment:

Share to:
see all

All Comments (5)

Sign In or Sign Up now to post a comment!
  • I hear ya, but to more you look, the more you learn

  • I'm 5 and have already spent far too many years paying interest to banks for my tiny portion of equity. Looking back, i regret those 25 year mortgages. I should have had a 10 years mortgage and eaten 2-minute noodles. I would have twice the capital I have today.....and then some. Interest is a cancer on your life and potential wealth. Debt sucks. I have none now and I'm in NO hurry to borrow again.

  • agreed, but statistics do that, there just a referance, as the trend goes, kiwis dont change much about the way they spend there money unless the market drys up or the product changes, but that ballance is always the hard part of looking into a market value, looks like a good time to sit and wait for the market value to decrease, safe as houses.. im young enough to pay of a 30 yr morgage before the next boom

  • Talk of "real terms" obscures the reality we in a nominal world. This graph can also be used to show how "real wealth" eroded in stagflationary times while their nominal wealth seems to increase. Right now, what should a person cashed-up and debt-free do? Should we buy assets now? Or wait? It's a balance between erosion of their cash wealth by inflation and the possible increase in their 'real' purchasing power as the price of major assets falls faster than inflation erodes their milk money.

Loading...

Alert icon
0 / 00Unsaved Playlist Return to active list
    1. Your queue is empty. Add videos to your queue using this button:
      or sign in to load a different list.
    Loading...Loading...Saving...
    • Clear all videos from this list
    • Learn more