Forget interset rate rises - the Fed is bluffing
With US stock, bond and real estate markets all looking over-valued, at the same time (in 1929 it was only stocks) and investors fleeing stock and bonds, interest rate rises are out. Corporations need to borrow to manipulate stock-markets upwards via buy-backs, banks need to protect the value of securities on their books - kept up by low IRs, and the last thing corporations with declining earnings and revenues need is to divert more cash to debt servicing.
Real estate as investment and tax dodge, rather than as dwelling
What draws the world to London is opportunity. But it is also a magnet for people looking for a safe place for their money. Having made it in countries like Russia and China with a cowed press, rampant corruption and no rule of law, oligarchs and crony capitalists reach the conclusion that they like nothing as much as democratic systems with real legal systems and a vigorous press. Having trashed the West they trust the West with their money, driving up prices in prime markets to the point where the middle classes of those countries, with incomes stagnant or falling (and taxed), are pushed aside. London is the capital of these trends. That is the different reek, of something amiss and skewed and wrong, in its purring streets.