patrick.net

I guess it all depends on what you read to get a picture of house price trends:

http://www.theguardian.com/business/2014/oct/10/rightmove-house-prices-rise-30-per-cent-five-years-outside-london

Also not sure how someone can claim deflation is rampant in Europe when the only time there's been a negative rate since 1991 was back in the summer of 2009.

Bigsby says

I guess it all depends on what you read to get a picture of house price trends:

According to the article:

"House prices will rise by 30% in five years, Rightmove says"

Not likely... deflation is happening and will continue into the future. This article is wishful thinking at best.

Almost half the Eurozone is in deflation. This chart from Eurostat understates the real situation over there but shows the trend in every country is down. It's a matter of time -- and not much time -- before the statistics agencies have to print the (almost) truth.

A declining inflation rate isn't deflation. The ECB is forecasting a rise in inflation over the next 5 years...

Bigsby says

A declining inflation rate isn't deflation. The ECB is forecasting a rise in inflation over the next 5 years...

True. I'll give you that. I just think the ECB lying. Otherwise they wouldn't have taken QE off the table. The EU is in big, big trouble.

darlag says

The EU is in big, big trouble.

Based on the fact you were wrong about deflation???

Bigsby says

Based on the fact you were wrong about deflation???

Apparently I'm not making myself clear. Europe is in deflation. The Eurostat numbers are fudged, same as the BLS numbers are fudged over here.

What I gave you was the fact that a declining inflation rate is not deflation, not that Europe's economy isn't deflating. It is.

darlag says

Europe is in deflation.

And as I said before, it isn't. The facts contradict what you are saying. You can't just claim the figures are fudged when the numbers run contrary to what you are arguing.

Bigsby says

And as I said before, it isn't. The facts contradict what you are saying. You can't just claim the figures are fudged when the numbers run contrary to what you are arguing.

My last comment on this subject.. final word is yours.

This Eurostat chart is from April... 4 of 7 are in deflation and the problems have only gotten worse since then. Believe it or don't.

You've just proven my point. And it's not 4 out of 7. Only one of those is clearly in deflation. The other is borderline (and rising). The others according to that graph are in positive territory. And which of those countries are the powerhouses of Europe? What is the inflation rate for Europe as a whole? What are the forecasts for the coming 5 years from the major economic bodies? Your claim was that deflation was rampant throughout Europe. Your own graph demonstrates that to be bullshit. It would appear that you're confused about the difference between declining inflation rates and actual deflation.

darlag says

poor purchase approval rate

Is it that or just affordability in the first place?

Bigsby says

You've just proven my point. Which of those countries are the powerhouses of Europe? What is the inflation rate for Europe? What are the forecasts for the coming 5 years from the major economic bodies? Your claim was that deflation was rampant throughout Europe. Your own graph demonstrates that to be bullshit. It would appear that you're confused about the difference between declining inflation rates and actual deflation.

Bigsby says

A declining inflation rate isn't deflation. The ECB is forecasting a rise in inflation over the next 5 years...

A declining inflation rate is "disinflation"
http://www.investopedia.com/terms/d/disinflation.asp

Bigsby says

Strategist says

A declining inflation rate is "disinflation"

http://www.investopedia.com/terms/d/disinflation.asp

Which isn't deflation, so...

You are right, it isn't.