How high will the prices go after the credit crunch?

Question

How high will the prices go after the credit crunch?

Answer 1

i am studying economics and I can tell you this is just the beginning. Our entire economy is priced on oil the higher the price for that because of more demand and less of it the higher the price.

Businesses like to pass on expenses to us customers. Now until someone smart *** saves the world by finding a substitute for oil pricing will continue to rise. Prices will never drop. Inflation is actually at 8% and will rise. Guessing your in the uk "credit crunch" the price of oil plus the vast amount of immigrants in the country demanding more resources will put prices up. the credit crunch will continue for another 8-18 months. so right now a the cheapest price of bread I've seen is 95p. I guess at the end it will be £1.28. and by the end of 2009 properly £1.41.

The uk has been behind inflation for 15 yea rd thanks to Gordon brown who actually did his job pretty well.

Answer 2

Well, let me put it to you very simple ....

My home now is valued at $179,000 .

They tell me that in two years it will be up to $200,000 and by five years, it will be at $225,000 .....

Hope that helped without a legnthy explanation ...

Answer 3

Prices of houses I assume as you are asking in the real estate section..

I assume that they will be another bubble bigger than the one currently deflating....its just the way with all asset classes...The Govt is making things worse by interfering right now rather than letting the market correct itself..they have this afternoon announced measures...and again when prices start rising they will intervene and prices will go crazy again....

And after all for some reason people assume prices of houses are only driven by demand and supply....incorrect in the West..its all about access to funds and consumer confidence...

There are many houses (thousands) all over the country that are empty...so there is no housing shortage as people like to say...but rather shortage of affordable houses...  

Answer 4

You will not see the return of double digit increases in housing costs as proven with the bubble where not sustainable. Income's rise did no where near keep up with it, add the costs of energy and people just cannot afford to live. I believe in the next year you will see the bottoming out, and a slow, very slow stabilization of the prices and then a general rise of 1-2%. (which is sustainable)