Monday, Oct 29, 2007
Cooling effect
Times Online: Bank figures fuel housing market blues
Mortgage approvals are regarded as a quite good gauge of future market trend "Approvals of new home loans dropped last month to the lowest levels for two years, in the latest sign that the housing market is cooling rapidly. "
Posted by peter @ 02:48 PM (423 views) Add Comment
4 Comments
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1. alan said...
Few banks want to lend money on any sort of mortgage at the moment. CitiBank (for examle) has major problems sorting out its mortgage loans and doesn't want any more - see CNN today.
2. uncle tom said...
I had a look at the BOE report, which confirmed to me that we are still firmly in 'phase one' of the downturn, with rampant piggy-bank raiding of housing equity continuing - so far...
In the US, this phase looks to be coming to an end, with the inevitable 'phase two' economic consequences of lower consumer spending, as homeowners begin to find they no longer have any equity left to raid.
~~~
As an aside, I think the position of the $US as the global reserve currency is becoming extremely fragile. It will take only the mildest of shocks now to kick off the panic selling of US treasuries, with a resulting huge increase in US bond yields, and a further dramatic collapse in the value of the dollar. If you have any shares that relate to the US domestic economy alone, get rid them now!
3. planning4acrash said...
But in the long term, who to take up the slack? I can only see the Euro as a replacement Fiat currency, that would be good for the US, because we work closely with them and the US can trade back with us. Maybe this centrury will see the Euro becoming equal to the dollar? Our economies are similar sizes. maybe Euro will leapfrog US because we consume 50% less oil/GDP, so that will be important in the coming century.
4. whiteknight said...
Ever been to Asia recently?
The only thing one learns looking at economic data for "growth", "inflation" , "economy sizes/output" etc. Is that they are a pile of weapons grade steaming horse manure as will become apparent very , very quickly. The word "cooked" doesn't make the grade for these books.
I make a prediction that people will be "staggered" and "shocked" and "surprised" and "couldn't have seen it coming" when we are finally put out of our misery.