Thursday, Jul 15, 2010

More deleveraging

Independent: Mortgage debt falls £3.2Bn

Spending is so yesterday.

Posted by chrisch @ 12:02 PM (667 views) Add Comment

4 Comments

1. Justpassingby said...

Having reasonable house prices now could have meant a large portion of this money spent on goods and services. Contributing to economic growth rather than locking it away where the real value of it will now erode at least by the rate of inflation if house prices continue to bump along or fall.

I wonder how many of societies / the UK's problems could be in part attributed to extortionate house prices and the knock on effect of less disposable income?

Thursday, July 15, 2010 12:29PM Report Comment
 

2. Exiges said...

So now would be a good time to put up interest rates then ?

Thursday, July 15, 2010 12:44PM Report Comment
 

3. techieman said...

"But he added that the trend was contributing to the current constraints on consumer spending." Really?!?!?

Thursday, July 15, 2010 01:48PM Report Comment
 

4. Yoss said...

Seems like common sense to me exactly what I see everyday. Problem comes when confidence returns... With CPI/RPI surging, it could get ugly if those same households decided to re-leverage.

Hopefully it will go slow/steady... if it doesn't at the wrong end of the equation will get squeezed summit nasty by interest rates.

Thursday, July 15, 2010 08:27PM Report Comment
 

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