The Origins of the Debt Super Cycle a.k.a. BASEL, RWAs & Fiat Money

posted by Chris Watling | posted

“…The growth rate of UK house prices since 1980 (i.e. the past 36 years) in real ‘inflation adjusted’ terms, is more than double the growth rate of the prior 50 years……  
 
…Why did this happen? Is it simply a lack of housing supply – as popular political narrative suggests? Or is it primarily related to high levels of immigration or overseas buying of UK properties, or indeed a boom in ownership of second UK homes? Or perhaps, increased affordability as more women have entered the workforce? In our view, it’s not clear that any of those factors either stand alone or as a group, could have accounted for the significant step change in real terms house price growth (from early 1980s onwards)………The one factor that does change, and marks the start of the step change in real UK house price growth, is the supply of mortgage debt….” 
 
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