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spivT

Does This Sound Like An Attempt To Blow A Bubble ?

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or what ?

http://news.bbc.co.uk/1/hi/business/8094698.stm

In January, 48% of new home loans were fixed-rate deals but this proportion rose to 69% in April. The average rate charged on those deals in April - of 4.83% - was the lowest paid since January 2004.

cost of borrowing at lowest level for years due mainly to a deteriorating economy/threat of deflation and central bank ZIRP policy. Banks and lenders told to go easy on the old repossession smoothy.

Then there's credit card transactions down, talk of savers looking for returns 'elsewhere'.....

this isn't just an overall credit bubble...these are the seeds of a housing bubble attempting to be blown. But has enough deleveraging occured for the bubble not to deflate early into it's attempts to expand....

or is this just a spring bounce. And a case of cash which has waited on the sidelines for well over a year probably finding an outlet....and i don't just mean STR-cash, in case someone pipes up to make the case for that having minimal impact.

Once again merv and co. taking their eye off the housing monster as they wet their pants over deflation. What's the betting he'll be making excuses for why they didn't couldn't do anything about reflating the housing bubble in a few years, just as he points to the rate cut in 2005 as a pivotal moment. This looks like that all over again in many ways.

It wasn't as if we weren't warned. Margarett beckett told us as much. :blink:

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