Comments on: The panacea to UK strength lies in banks that remember their purpose http://www.investmentandbusinessnews.co.uk/entrepreneurism-and-innovation/the-panacea-to-uk-strength-lies-in-banks-that-remember-their-purpose/ Irreverent, punchy and thought-provoking Wed, 08 Sep 2010 14:12:44 +0000 hourly 1 http://wordpress.org/?v=3.0 By: David http://www.investmentandbusinessnews.co.uk/entrepreneurism-and-innovation/the-panacea-to-uk-strength-lies-in-banks-that-remember-their-purpose/comment-page-1/#comment-2325 David Sun, 20 Dec 2009 17:51:30 +0000 http://www.investmentandbusinessnews.co.uk/?p=5534#comment-2325 I agree with almost everything you say. However, I sort of think asset price inflation (the inflation of predominently commercial and residential properties is a good thing) and does not constitute a bubble. Residential and Commercial property asset price inflation stimulates the demand for new buid properties from the construction sector and prevents banks from loosing money on loans against property, thereby preserving banking capital. Asset price appreciation is surely a mandatory requisit for us to come out of this recession. I agree with almost everything you say. However, I sort of think asset price inflation (the inflation of predominently commercial and residential properties is a good thing) and does not constitute a bubble.

Residential and Commercial property asset price inflation stimulates the demand for new buid properties from the construction sector and prevents banks from loosing money on loans against property, thereby preserving banking capital. Asset price appreciation is surely a mandatory requisit for us to come out of this recession.

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