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  PaulB. People should take great care and whatever else should not jump in to see if they can make a quick buck. There is still a lot of pain to go through and I dont think that we have seen the bottom of the property market. I am not an expert on property, however and I am thankfully not heavily into mortgage broking but I do keep an eye on this because on the impact on the wider economy.
  
  On the positive side there is good reason to believe that commodities (despite a recent resurgence in oil price) are moderating and the inflation peak will soon be reached. This should enable the BoE to start reducing interest rates and hopefully we might see a fairly fast fall, though we did think that was going to happen 12 months ago!
  
  Another positive, leading investment guru, Anthony Bolton, last week said that the equity bear market is entering its last phase with pressure moving from financials to commodities. We are not out of the woods yet and provided the US gets it act together we may find that a turning point has been reached.
  
  Some good news there but remember, we are still heading into a recession and 2009 can be expected to still be difficult. I dont think we will really start to see an economic recovery until 2010 and it may be longer before people really see the benefit.
  
  That said there are some longer term storms to encounter, the money supply position could result in a resurgence of (domestic) inflation from 2010 onwards. The Government (of whatever colour) needs to get a grip with resolving that and get control over spending and fiscal policy. Independent economists are saying that taxes will have to rise by the equivilent of 5p/£ or Government spending seriously curtailed. The hangover from the present crisis could otherwise be worse than the hangover we had in 1980 getting over the last serious Government spending crisis.

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