In its ‘Devastating Dynamic of Debt’ report, the investment analyst says Gordon Brown policies are “akin to solving a drug addict’s problem by forcing drug dealers to offer a buy one get one free deal” and is only making a bad situation worse.
Its outlook compares the UK to that of the US in 1929. It says the economic imbalances in the UK are greater than the imbalances in the US: “policy response of today is probably appropriate for 1929 but inappropriate for 2009,” says Numis
Numis also says that UK property prices remain between 17 per cent and 39 per cent over-valued and as a result they could fall by between 40 and 55 per cent from current levels.
It says: ‘‘Property is structurally overvalued: In our opinion, estate agents, building societies, banks, IFAs and even the government are peddling the property affordability myth.”