UK House Prices -The next bubble waiting to burst ??

My tuppence to the debate...

Until the debt mountain implodes property and commodity prices should continue to rise as money devalues - The continued expansion of debt/'money' by so called Democratic Governments (who are clearly not acting in our best interests) will see to this. I believe we're in hyper-inflationary territory - The official data we read in the press is doctored beyond any practical use -CPI PPI etc. - all junk.

In the US a number of property REITS have been bought out by new interests at prices above their market traded prices - How's that when these companies are massively in debt, over-valued with lean earnings? I suspect that this is the FED's work - stealthily buying assets to further increase money supply and attempt to ward off or soften a market crash. When the crash comes all this debt will start to unravel - then we'll see the start of an epic recession that will cause the supply of houses to increase as those who are over exposed take fright - rising interest rates will fan the flames (governments cannot control interest rates and I doubt the market will continue to stand for single digit returns when the risk is seen to be high. Sane people will not be taking on new debt with this scenario so increased supply and diminished demand will result in the long awaited property crash.

In the meantime remember Keynes: "Markets can remain irrational longer than you can remain solvent."