Saturday, Jul 10, 2010

Gloom and doom from Mish

Mish Blog: UK Roundup: Average Salaries Drop; IMF Downgrades Forecast; Pension Plans Forced to Address Liabilities; Home Prices Drop

Mike Shedlock serves a four course meal for the UK: average salary drops, IMF forecast downgrades, pension problems and property price drops. Regarding property prices, Shedlock declares "This is not even a start of what is going to happen. Canada, Australia, the UK, and China all have property bubbles that are about to burst wide open."

Posted by quiet guy @ 01:28 PM (1940 views) Add Comment

10 Comments

1. miken said...

So one would expect average prices of houses to keep falling. Yipeeee!

Saturday, July 10, 2010 05:29PM Report Comment
 

2. Delboy said...

Been reading HPC for years now and am wondering WHEN will this "crash" eventuate? Will it be on the scale of around a 30% drop as we experienced in the late 80's?

Saturday, July 10, 2010 05:37PM Report Comment
 

3. happy mondays said...

Yeah baby! bring it on...

Saturday, July 10, 2010 07:06PM Report Comment
 

4. paul said...

Well done Bank of England!

Your prudent monetary management has paid off.

Saturday, July 10, 2010 10:46PM Report Comment
 

5. markj69 str05 said...

@1... 'keep falling.' !!! What stats are you getting? Avg' prices have been practically static the last few months, and increased the previous 9mnths.

Since '05, and going into renting, I've felt like i'd been climbing Everest with a sledge on my back, only to find a brief downward slope before hitting an incline again. Now levelling out, so not panicking just yet. For what seems like a lifetime, i've been waiting for the 'big dipper', only to be scuppered by QE, and low IR. Still I cannot see any alternative to a huge correction, but then again, can society really sustain teh burden of nequity, and national reduced paper wealth?

What next I wonder. Still waiting, still renting. Getting older! What a wonderful country this is.

Saturday, July 10, 2010 11:23PM Report Comment
 

6. markj69 str05 said...

Image what a drop in avg salary is going to do to the Avg salary vs Avg House price ratio!

Max' borrowing will decrease. Affordability reduced.

I wonder if 125% mortgates are about to make a return?!?!?

Sunday, July 11, 2010 12:19AM Report Comment
 

7. quiet guy said...

@markj69 str05

"What next I wonder. Still waiting, still renting. Getting older!"

Yep. Know the feeling.
http://www.housepricecrash.co.uk/newsblog/2010/05/blog-changing-the-rules-why-predicting-the-hpc-is-so-difficult-28965.php

Sunday, July 11, 2010 10:13AM Report Comment
 

8. miken said...

@4, I was getting at the average wage stats. Usually your wage is taken into account to determine the loan size.
Average wage drops, loan size gets smaller and so house prices keep falling.... OK might be static in your area, but
in areas where there are high levels of relatively young mobile people (e.g bankers) I would expect huge impacts on house prices quite quickly.

Sunday, July 11, 2010 10:19AM Report Comment
 

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