Wednesday, Aug 29, 2007
Well, who'd a-thunk-it?
Bloomberg Opinion: Global Credit Crunch Will Dent London's Economy:
Some good points but a real misunderstanding of the real issues here.
While Mr Lynn,s cursory analysis does well to show how London's prosperity in the last 5 years (arguably 10 years) has been tied to the whims of esoteric financial tides , I fear that his analysis is childlike in its shallowness.
He fails to link the very motor of the UK economy to availability of cheap money. This spigot just got turned on and off a few times in a week and revealed the true weakness in our illusory edifice.
Posted by lvmreader @ 12:24 PM (392 views) Add Comment
3 Comments
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1. Alan said...
The Nationwide (F. Earley), said this week that 2008 will see HPI at a max of 3.3% I assume that Nationwide are looking at the same market as ourselves (and it has just acquired Portman B.S,). Wouldn't it be nice to know what they were basing their predictions on, and what are the assumptions? Anyone work for Nationwide?
In 2003, Pam Woodall (editor of Economist) predicted a 20-25% drop in HPI for 2004. Many downward correction predictions have been made since (see HPC archives).
Sub-prime mortgages became a lot harder to obtain this week, in the UK. If this caution is extended to prime mortgages as part of a credit freeze, then house prices could come down sharply. Does this seem likely?
2. Rimmer said...
Alan
Sub-Prime mortgages are now imposible to obtain.
Normal mortgages became a lot harder to obtain this week, i was in the US recently, there was a broker who had been employed 5 years ( by the same company ) and earned 100K + a year, he couldnt get a mortgage and kept being told by all institutions go away and come back with a deposit.
Stange how the world changes very suddenly.
3. planning4acrash said...
1