Tuesday, Jan 20, 2009
More toxic debt
The Wall Street Journal: U.K. Home Prices Forecast to Drop 45% from Peak
Analyst reports issued by Morgan Stanley and Royal Bank of Scotland Group PLC last week each said derivatives were pricing a peak-to-trough fall of 45% in U.K. house prices from August 2007 to the end of 2010. RBS's estimated that such a substantial fall would put 60% of HBOS's mortgage book into negative equity, more than half on Lloyds TSB's books and more than a third at Barclays PLC and RBS. HBOS and Lloyds this week merged into Lloyds Banking Group PLC.
Posted by crashonitsway @ 12:52 PM (606 views) Add Comment
6 Comments
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1. troy said...
crashonitsway ~~~ you've just made an interesting and controversial point.
Your article choice is probably one of the most significant and relative to this website and HPC generally.
It couldn't be more ON topic.
And yet no-one seems to want to comment on it and only 17 have looked at the article
hhmmnn!
2. rm96696 said...
Article says "u.k. house prices have been hit by tight lending conditions". The truth of the matter is that u.k. house prices have been hit by a return to sanity. I'm sure that during some future property bubble (in 2025?) people will say "this time it's different. during the 2009 property crash there was mortgage rationing". And the bubble will collapse again. People never learn.
Anyhow, prices are already down 45% measured in any serious currency.
3. Renter said...
I do NOT believe it UNTIL I see it.
4. First Time Buyer said...
That's what I have been saying for years. House prices will crash 50% across the UK and 70% in London. I cannot wait to laugh at those who were laughing at me when I was making these predictions. It's payback time.
5. troy said...
rm96696 - em ~~~ so?
crashonitsway ~~~ good to see 217 as I write, but still no debate!
as Tommy Steele said "Fings aint wot they used to be"
sorry Eastenders has just started
bt s2r1 is having a similar problem
6. troy said...
from earlier comments somewhere out there ~~~
"I have had it alraedy with this schmuck and he hasn't even been sworn in. Him and his talk about all of us having to share in the pain. Screw him. His plan stinks and it will fail just as the New Deal did. Better start a World War there Obabma Boy.
Anonymous | 01.19.09 - 3:07 pm | #"
What Obama Left Out of the Economic Recovery Plan
Higher Wages and Debt Relief
By Mike Whitney whoever he is