Monday, Jun 11, 2007

Ooops...

Forbes: UK lenders with specialist mortgage exposure may face rating pressures

This is fresh news: "S&P estimates that the specialist mortgage lending accounts for one-third of all new lending, and more than one-fifth of the total UK mortgage market stock, the release added." Then Professor Nickell said: "Nooo, it is not pooovsible, how can vnemployment and IRs go up? iiit is a new eeera, and ve vneed house prices to hit 10x salaries... but I have an idea... Gooordon, let us slash the saalaries. That will wooovk too"

Posted by confused76 @ 03:32 PM (375 views) Add Comment

6 Comments

1. Orwell said...

Are we referring to Sub Prime here?

Monday, June 11, 2007 03:48PM Report Comment
 

2. paul said...

I'm not sure though confused - it's very conditional:

1. IRs going up
2. unemployment going up
3. house prices going down

In isolation, any of them possible. A combination is not beyond likelihood, but all three at the same time seem less likely ...

Monday, June 11, 2007 05:24PM Report Comment
 

3. taffee said...

yes but the wall street crash of 1929 happened at a time of great prosperity.....unfortunately like now it was all based on huge debt.

Monday, June 11, 2007 05:30PM Report Comment
 

4. confused76 said...

Paul,
I am with you, but you only need 1 OR 2 to achieve 3.

Monday, June 11, 2007 05:42PM Report Comment
 

5. paul said...

Aha. Yes, I see.

Monday, June 11, 2007 06:17PM Report Comment
 

6. Pandyhead said...

If IR go up you'll have less money floating about, but not tamed the inflation monster. Which will lead to higher unemployement,
1+2=3
Just like last time

Monday, June 11, 2007 08:35PM Report Comment
 

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