About WhichWayHome

The first WhichWayHome "Essentials" were written in 2006 and published on WhichWayHome.co.uk in April 2007. House prices had climbed in line with a rapid expansion of credit, creating a feedback loop in which banks loaned money to homebuyers because house prices were rising but the more they loaned the more it was used to chase house prices up even further.

Following $640 billion of subprime loans made in 2006, subprime loans amounted to 17% of home purchases and totalled around $1 trillion. Substantially owned by financial institutions and hedge funds, 13% of these loans were delinquent and 2% in foreclosure. This was the picture while the economy was supposedly healthy and it did not take much imagination to realise the implications of a deterioration in these loans when the economy later faltered.

WhichWayHome acknowledged that the increase in loan defaults experienced at the time would accelerate, forcing banks to become more conservative and bringing about a collapse in credit. House prices would then be unsustainable and the property market would dislocate.

Within six months much of Wall Street had collapsed, house prices crashed, the stock market crumbled and governments around the world began to bail out disintegrating financial institutions.

As a result of the massive government stimulus, in July 2009 "WhichWayGold" was launched, warning readers of the coming high or hyperinflation which will destroy the value of many assets denominated in US Dollars and British Pounds. Gold, silver and platinum were recommended as a safe haven a store of wealth and a hedge against the coming inflation.

We will keep you updated of further major economic developments as they unfold.