Wednesday, Nov 14, 2007

Cornerstone of London house prices crumbling

The Telegraph: City bankers face bonus and job cuts

London house prices, the last part of the UK still to be rising, will fall in the new year.

Posted by sold 2 rent 1 @ 07:58 AM (746 views) Add Comment

10 Comments

1. magnifico said...

I reckon this is going to be very significant. The over-inflated increases in HPs in London, due to an over-inflated banking sector relying on debt culture, and well publicised by the Media, has had a big effect on the whole country's perception.
Reality has started to kick in. |This is one category of losers upon which I won't be spilling any tears.

Wednesday, November 14, 2007 09:56AM Report Comment
 

2. voiceofreason said...

Why did the Dow go up 319 points yesterday ?

As far as I can see, the market makers have yet again decided that the sub-prime hole isn't as bad as everyone thinks.
It is very wierd, sentiment seems to see-saw around the place.

Anyone got any more succinct explanations ?

Wednesday, November 14, 2007 10:10AM Report Comment
 

3. Ntone606 said...

voiceofreason, it was a technical bounce and somewhat over the top. 319 point raise when the news is this bad isn't rational. Expect to see more downside soon.

Wednesday, November 14, 2007 10:11AM Report Comment
 

4. paul said...

Wait and see what happens tomorrow, when the new FASB rules kick in regarding "mark to fair value".

My guess is that Wall Street is desperately pouncing on good news ahead of the coming crapstorm(?). I really don't understand it either though.

Wednesday, November 14, 2007 10:21AM Report Comment
 

5. maddison said...

Fear is stalking the market. When there is a crumb of comfort everyone rejoices. Whenever there is a niggly doubt everyone panics!

Wednesday, November 14, 2007 10:21AM Report Comment
 

6. Str2007 said...

Great Wal-Mart results - may be sign of consumers going down-market/belt tightening

Wednesday, November 14, 2007 10:38AM Report Comment
 

7. Hughbarnard said...

Since there's no solid audit trail and transparency about the total volume and ownership of 'securitised' sub prime debt, this will go on for a while. When all the major players have reached a year-end and provided audited accounts, there's some resolution.

However, even then, all this stuff is very difficult to price realistically (unlike ordinary shares, for example) so there's still uncertainty/volatility for those that are holding these instruments and a knock on effect in 'real life', higher rates, tighter credit etc. etc.

Wednesday, November 14, 2007 11:18AM Report Comment
 

8. cyril said...

Oh calamity! Bonuses down by one third - what great sacrifices will have to be made? Hang on to the Bentley for another year?

Wednesday, November 14, 2007 12:12PM Report Comment
 

9. techieman said...

VofR it went up because it went up!! You need to appreciate that these markets are technical - dont try to play the game of (in the short term at least) pinning market moves on news - it dont work. it was oversold and there was a bear squeeze. there was a completed ABC in Elliott terms and the RSI was something ridiculous. Also try not to focus on the DJIA look for more Breath to see what the market is really doing (eg S&P or Wilshire). Take a look at Market Oracle: http://www.marketoracle.co.uk/Article2742.html for a simple explanation or a more in-depth look : http://www.marketoracle.co.uk/Article2694.html [although hes french - im a big fan!!].

Wednesday, November 14, 2007 12:48PM Report Comment
 

10. hoyo said...

I'm loving it, I only put the call side of a condor on this month so no downside risk with 2 days to go ;-),

Wednesday, November 14, 2007 08:18PM Report Comment
 

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