Sunday, Sep 23, 2007

Here we go!

Times: Too much pressure

“We are witnessing a ‘rabbit in the headlights’ reaction,” says Max Ziff, chief executive of the estate agency Humberts. “It will be a month or two before we can accurately measure the impact of this week’s developments on the property market.
“We will see an early correction in prices, but not a crash. While prices will inevitably fall, the impact will be heavily skewed towards the lower end of the market and the big conurbations, where properties tend to be purchased with higher proportions of debt.” What the heck does it mean? To me it means that mainstream press is talking about CRASH

Posted by confused76 @ 01:55 AM (684 views) Add Comment

14 Comments

1. japanese uncle said...

So, are we simply talking ourselves into a recession with all this talk of crises and price crashes?
------------------------------------

Typical case of a subjective idealism.

Sunday, September 23, 2007 05:54AM Report Comment
 

2. Andyh said...

Folks that idiot noshbag Smith in the Times is again defending the debt based UK economy, and has the nerve to attact Cameron for having a go at quoting National debt figures. Noshbag claims that UK debt as % of GDP is in the mid 30s but as a visit here illustrates http://www.statistics.gov.uk/cci/nugget.asp?id=277
the figures is in the mid 40s.
I have of course e-mailed this to his Times page but I expect as usual they will ignore my post so why dont a few of you lot also inundate his page with the above facts. Noshbag seems to be getting worse - along with Kaletsky they appear to believe the present UK eonomy, based on a mountain of debt, is as strong as it has ever been. I concluded long ago that the pair of them are Brown's creatures.

Sunday, September 23, 2007 07:03AM Report Comment
 

3. paul said...

How things have moved along.

First talking about slowing houseprice growth (but not zero house price growth),
then talking about zero house price growth (but not falling house price growth),
then talking of falling house price growth (but not a crash).

Sunday, September 23, 2007 09:06AM Report Comment
 

4. uncle chris said...

Hmmmm - that's exactly the way in went last time - but they told us things were different this time ???

Sunday, September 23, 2007 09:26AM Report Comment
 

5. planning4acrash said...

Yes, it is different this time, we are in WAY MORE DEBT!!

Sunday, September 23, 2007 10:21AM Report Comment
 

6. Dude said...

But uncle chris, it will be different this time. Look at the graph on the front page of this site. Last time we were only falling from a first floor window. This time it's from a fifth floor. Now that's gotta need a bigger mop.

Sunday, September 23, 2007 10:23AM Report Comment
 

7. Jackdaw said...

This is just another VI agent - a 'canute' trying to talk down the 'wetness' of a tsunami.

Sunday, September 23, 2007 01:43PM Report Comment
 

8. inbreda said...

Paul - how many more stages do you think there will be?

a crash (but not a big one)
then a big crash (but not a recession)
then a recession (but not a depression)
a depression...

Sunday, September 23, 2007 03:29PM Report Comment
 

9. denzil said...

Humberts have still been expanding their empire over the last year by buying up EA chains right at the top of the market.
>>"While prices will inevitably fall, the impact will be heavily skewed towards the lower end of the market and the big conurbations, where properties tend to be purchased with higher proportions of debt.”

Makes sense. Under Labour the reasonably wealthy have got wealthier but the anybody at the bottom rung of the ladder has had to seriously rack up the debt to get a foothold even a lot of the BTL crowd. I've been seeing exactly this for months, perhaps as many as 18 months. The higher end properties simply sell in days, the lower end of the spectrum sits around for a while before getting bought up by very amatuer BTL or FTB hocked up to the eyeballs.

Sunday, September 23, 2007 03:36PM Report Comment
 

10. iguana said...

Fear not bloggers!

El Gordo has put it on record that there will be no more boom and bust, so everything will be ok then?

Why do I feel nervous?

Sunday, September 23, 2007 03:36PM Report Comment
 

11. paul said...

If The Economist analysis is anything to go by, it really is a very very long way down, inbreda.

We have borrowed on average 5 times the amount the average US citizen has, and our house prices have risen by much much more than the US.

Meanwhile Crash Gordon claims the GBP1.3tr of debt is "a positive thing". Good lawd.

Sunday, September 23, 2007 04:34PM Report Comment
 

12. wiltshire said...

Yes about that 'no more boom and bust' comment. Considering that since the moment he said it we've experienced the biggest boom ever, I wonder what that will mean for a bust? I suspect 'no more boom and bust' might become one of those 'famous last words' moments that will hang like a millstone around his fat neck for the rest of his life (and beyond). I can see the timing of the crash being as prescient. "Within hours of Liebour winning the 2007 General Election the UK economy began a decade long slide which reduced most people's living standards to those not seen since the Dark Ages........."

Did anyone see Crash Gordon being interviewed by Andrew Marr this morning? It really was shocking, as Paul says, he seems to think the fact we're GBP1.3trillion in debt as a nation isn't a problem at all. He almost said it's not a problem cos everyone feels rich! Ha! Boy are they in for a shock.

Sunday, September 23, 2007 05:01PM Report Comment
 

13. Paranoia Blue said...

Yes, I did witness Crash Gordon’s most recent charade
I’ve never ever quite worked out whether, either politicians are complete idiots, or that they think that the electorate is!
[Being the “either/or” fallacy – the answer is most probably “both/and”]

So heaven help us all!

Sunday, September 23, 2007 05:14PM Report Comment
 

14. wiltshire said...

My hope is that once this economic charade is revealed for the emporers new clothes that it is that people start to get real again. Time that celebrity and (conspicuous) consumption were frowned upon for the nonsense they really are and time people start expecting a lot lot LOT more from their leaders. Probably got two hopes though sadly.....................

Sunday, September 23, 2007 05:30PM Report Comment
 

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