Friday, Dec 29, 2006
2007 'Debt Tipping Point' Warning
BBC News: New year could see debt 'tipping point'
Further scaremongering or an 'AWOOGA' warning about the future?
Posted by nearly30 @ 11:22 AM (38 views) Add Comment
8 Comments
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1. Taffee said...
its all there for us to see........a long 10 year slump in house prices or longer..........we will see in hindsight we are in a huge huge bubble.For example average house price in US is £112,000 and prices there are falling.....that is HALF the avarage price here.....are we still think its going up?
2. nearly30 said...
Trust everyone had a good xmas break - get any surfing in Glorious?
I love these new year predictions - last years proved to be a bit off (10.5% Up):
HomeTrack = "2006 overview: Prices should rise by 1% during the course of 2006. The group said the market was being starved of first-time buyers as people in their twenties and even thirties simply do not earn enough to be able to afford their own home. Hometrack looked further into the future than the other forecasters. The group predicted that prices would increase by an average of 2.1% a year over the next three years."
There are signs and then there are signs.
An Apposite Quote = "Most people use statistics the way a drunk uses a lamp post, more for support than enlightenment"
3. bidin'matime said...
Well you obviously did, Nearly - still going, are we?? (Wrong article!?)
Back to this topic - I love it when they turn to some supposedly expert source to do their arithmetic for them - even more when they get it wrong:-
"According to the Halifax, Britain's biggest mortgage lender, a rate rise of just 1% - at the top end of most economists' forecasts for the current rate cycle - would see monthly repayments on a £150,000 mortgage rise by nearly £100. "
Now let me see - £150k x 1% is, er, umm, oh yes, £1,500. And £1,500 divided by, er how many months in a year? - oh yes, 12, okay, 12's into £1,500, now that's a tough one too, but it's got to be more than £100, hasn’t it, cos 12 hundreds are, well £1,200....
Anyone got a calculator to lend to the Halifax??
4. paul said...
"But many Britons may have got their sums wrong.
"One of the most striking statistics to emerge from the past few years is that the rise in house prices has been more than swallowed up by fresh borrowing such as remortgaging and consolidation loans," Mr Gibbons says. "
Oh yeah. Aint that the truth.
Let me just repeat that - do not adjust your set -
"BUT MANY BRITONS MAY HAVE GOT THEIR SUMS WRONG."
5. Sambino said...
Ive not been out that much this xmas but when I have its been very quiet not sure whats its like in other parts of the country but think things are starting to come home to roost that people have over strenghed themselves and in 2007 will feel very vunerable
6. Rimmer said...
bidin'matime
Its not that simple as mortgages are over various terms >>> http://www.crislis.co.uk/rept.htm
7. Headmelter said...
The clock is ticking..............Tick Tock...
8. sirgoogle said...
This article is by Julian Knight.
He is one of the lone voices in the BBC that are prepared to "cry in the wilderness" or tell people that the "Emperor has no clothes".