Thursday, May 22, 2008
VIs facing the truth
Telegraph: Housing slump could be worst since 1970s
House sales could fall to their lowest level since the mid-1970s the Council of Mortgage Lenders warned yesterday.
In a sharp revision to its previous forecasts, the CML said it is expecting house price falls of 7% by the end of this year. In its last forecast, it had predicted a rise of 1% for 2008.
The CML is also predicting a 35% fall in transactions to 770,000, which would be lowest level of activity in the housing market for 30 years.
Meanwhile, RICS has warned that housing transactions could fall 40% if the lending squeeze continues, although its forecast for house price falls is 5%.
Posted by little professor @ 12:55 AM (544 views) Add Comment
6 Comments
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1. drewster said...
I think we are in for a repeat of both the 1930s and the 1970s. The American subprime trailer-park residents whose failed mortgages started this crash were hit from two sides: there's the obvious problem of rising mortgage rates and diminished availability of credit, but there's also the problem of high petrol prices. Those are the same two problems which hit in the 1930s and 1970s respectively. Gold should hold up very well in those circumstances.
2. planning4acrash said...
Internet, with gold to gold sales facilitated, could turn gold into a defacto world currency soon. If enough people loose faith in fiat.
3. hpwatcher said...
I think someone should go to prison for all this mess.
4. sold 2 rent 1 said...
planning4acrash,
"could turn gold into a defacto world currency soon"
Let's hope bullionvault start adding banking-type functionality to their website - I had the same intuition.
drewster,
"I think we are in for a repeat of both the 1930s and the 1970s."
This destruction will accelerate into June and early July.
hpwatcher,
"I think someone should go to prison for all this mess."
Who will? The NWO? Brainwashed "common purpose" workers?
We will need a bit of CHANGE before that happens
5. planning4acrash said...
Although. State manipulation of gold continues and stops it from being entirely different to fiat. Your thoughts s2r?
6. it_is_going_with_a_bang said...
I get so pi**ed off with it being reported just as a "lending squeeze" and "confidence".
Report it as it is!
Common sense lending practices that shoud have been introduced and regulated properly YEARS ago.
Confidence? What that you just keep borrowing and borrowing and never worry about paying it back?
There is nothing wrong with what is happening at the moment. If you can afford to pay back a loan you will get one. Simple as that.
If you cannot prove beyond any reasonable doubt that you can pay it back then you don't get the loan. What on earth is wrong with that?