Thursday, May 06, 2010
Flames
Telegraph: Merkel plea to save Europe as contagion hits Iberia
"Europe's debt markets are flashing danger signals after spreads on Iberian debt reached the highest level since the launch of the euro and investors rushed for safety into German notes, prompting warnings from German Chancellor Angela Merkel that the European Project itself is at risk." I'm honestly not sure how this will play for HPC but I'm pretty certain that our homeownerist economy will not be unaffected.
Posted by quiet guy @ 01:40 AM (1160 views) Add Comment
5 Comments
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1. alan said...
"By failing to fix achievable priorities, the IMF risks a drift into deeper crisis".
Spain's problems will cause major structural stresses for the Euro, going forward. We have already seen Greeks buying up prime residential property in London (and shifting funds to do so). The Euro could cause some strange fluctuations for the £ over the next few months as Merkel and the ECB address the problems.
As for HPC, we could have a situation where prime property assets rise in price where they are bought from abroad as the values of houses elsewhere in the country dip. Then the Spanish may begin buying a 2nd homes in England!
2. happy mondays said...
alan said... As for HPC, we could have a situation where prime property assets rise in price where they are bought from abroad as the values of houses elsewhere in the country dip. Then the Spanish may begin buying a 2nd homes in England!
Do you think this would happen? As this could spread like wild fire, would the spanish / Greek investors pull out of property in europe all together,& invest there wealth else where, they must see Britains housing market as a ticking time bomb too...
I heard there were riots in devon last week at the modal village, apparently the church was set on fire , you could see the flames from nearly 3ft away..
3. Cheekie Charlie said...
It seems to me the Media seem to be avoiding the "R" word again despite saying Greece would contract by 3%. After all, the problem isn't ours, just like a few Americans defaulting on their mortgages could not collapse the UK banking sector. Another thing, despite Mervin's irresponsible comments saying interest rates would stay low for the next 4 years, if people are defaulting on their debt then the risk premium must surely rise which will result in higher interest rates.
4. cyril said...
Traditionally, houses have been a relatively safe investment because most of them have some intrinsic value to the people who own them. Things go wrong every time people start to think of residential property as an investment rather than a place to live. This Euro crisis will no doubt cause all sorts of ripple effects but the fundamental over-valuation of houses relative to earnings is the main issue I think. The main thing for the UK is UK interest rates. If they go up, the housing market is toast.
5. Crunchy said...
Can we compete with the euros devaluation? LOL