Let's hope global investors don't look too closely at GB numbers

摘要

The condition of the economy looks little short of dire. The psychological boost from the Olympics is already fading. Yet foreign capital continues to flow into the country, pushing gilt-edged and high-end London residential property prices onwards and upwards. In real terms, after adjusting for inflation, these bulls of gilt edged are actually paying the British government to take their money, which is an extraordinary gesture of faith in the politicians. The central London residential market is way out of line with historical norms. So who is right: the gloomy Brits or the gung-ho foreigners?