Is this the end for the boom and bust economic cycle?
As the UK economic turmoil continues there is hope today that we may finally have seen the end of the boom and bust economic cycle if UK authorities learn by their recent mistakes. But is this really the end of boom and bust?
Those who believe that the boom and bust economic cycle has gone forever could be very much shocked to learn that this is very unlikely to happen. Investors, corporate entities and consumers have very short memories because as and when the UK economy picks up and many begin to regain their former lifestyles the vast majority will forget how hard it has been over the last 12 months. The truth is that boom and bust is in effect fear and greed and these are very human emotions which cannot be turned on and turned off at a moments notice.
The banks will always chase that final one pound of profit, consumers will always look for the best deals around and with money in their pockets homebuyers will always look for that next big property. It is only when the economy peaks and starts to down turn that the snowball effect comes into play and what started as a small flurry can often end up as an avalanche of sellers - back to boom and bust!
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