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Official Survey: Severe Credit Contraction Coming To U K

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/7866844/British-households-face-second-credit-crisis-official-survey-warns.html

British households face second credit crisis, official survey warns
H
ouseholds must brace themselves for a return of the credit squeeze,
with mortgages far harder to procure in the coming months, new Bank of England research has shown.
By Edmund Conway and Angela Monaghan
Published: 6:00AM BST 02 Jul 2010
Banks plan to lend out less to homeowners
for the first time since the start of the credit crunch,
the Bank of England's latest survey shows.
Banks and building societies expect to lend less next quarter – the first time they have predicted a contraction of credit supply since the height of the financial crisis.
The warning, contained in the Bank's Credit Conditions Survey, underlines fears that Britain may suffer a dip in economic activity later this year as the impact of austerity measures and the sovereign debt crisis start to bear down on the wider economy. The survey also revealed that in last quarter the corporate sector suffered its biggest shortage of credit since 2008, reinforcing worries about the health of British business.

Something must stop the HPI juggernaut taking us to the edge of disaster again. The banks cannot withstand a second round of failures so this makes sense. It looks like they are at last doing something to stop this destructive trust in HPI to fuel economic growth.

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/7866844/British-households-face-second-credit-crisis-official-survey-warns.html

British households face second credit crisis, official survey warns
H
ouseholds must brace themselves for a return of the credit squeeze,
with mortgages far harder to procure in the coming months, new Bank of England research has shown.
By Edmund Conway and Angela Monaghan
Published: 6:00AM BST 02 Jul 2010
Banks plan to lend out less to homeowners
for the first time since the start of the credit crunch,
the Bank of England's latest survey shows.
Banks and building societies expect to lend less next quarter – the first time they have predicted a contraction of credit supply since the height of the financial crisis.
The warning, contained in the Bank's Credit Conditions Survey, underlines fears that Britain may suffer a dip in economic activity later this year as the impact of austerity measures and the sovereign debt crisis start to bear down on the wider economy. The survey also revealed that in last quarter the corporate sector suffered its biggest shortage of credit since 2008, reinforcing worries about the health of British business.

Something must stop the HPI juggernaut taking us to the edge of disaster again. The banks cannot withstand a second round of failures so this makes sense. It looks like they are at last doing something to stop this destructive trust in HPI to fuel economic growth.

I believe this will turn a gently falling Market over the next few months into a crashing Market in Q4. I've always said we don't need a base rate rise for HPC. The end of SLS/CGS will do it alone.

Those stuck on uncapped SVRs are dead in the water.

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This is good news HPCers!

Cut the supply of blood and the beast will die.

:D:D:D

Until the beasts' master turns the transfusion machine on.

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/7866844/British-households-face-second-credit-crisis-official-survey-warns.html

British households face second credit crisis, official survey warns
H
ouseholds must brace themselves for a return of the credit squeeze,
with mortgages far harder to procure in the coming months, new Bank of England research has shown.
By Edmund Conway and Angela Monaghan
Published: 6:00AM BST 02 Jul 2010
Banks plan to lend out less to homeowners
for the first time since the start of the credit crunch,
the Bank of England's latest survey shows.
Banks and building societies expect to lend less next quarter – the first time they have predicted a contraction of credit supply since the height of the financial crisis.
The warning, contained in the Bank's Credit Conditions Survey, underlines fears that Britain may suffer a dip in economic activity later this year as the impact of austerity measures and the sovereign debt crisis start to bear down on the wider economy. The survey also revealed that in last quarter the corporate sector suffered its biggest shortage of credit since 2008, reinforcing worries about the health of British business.

Something must stop the HPI juggernaut taking us to the edge of disaster again. The banks cannot withstand a second round of failures so this makes sense. It looks like they are at last doing something to stop this destructive trust in HPI to fuel economic growth.

It is good news - IF the banks are not using this BoE research as a lobbying tool, to press the BoE for more QE and low IR. I just read the news quickly, but that may be the case.

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Yup, no lending = no growth. So they'll try more QE as the outcome looks better short term. Houses up, bonds down. Win-win. I bet it will be the new economic paradigm, rather like securitization and exotic derivatives was.

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Yup, no lending = no growth. So they'll try more QE as the outcome looks better short term. Houses up, bonds down. Win-win. I bet it will be the new economic paradigm, rather like securitization and exotic derivatives was.

But politicians have a set date to be popular: in May 2015, the next General Election.

Bankers (current directors, on annual bonuses) have mainly a short term interest: this year's bonuses.

This different timing in essential: If the politicians know that it will not be possible to keep the bubble inflated all the way until 2015, they will prefer a correction in these first 1-3 years, and a "recovereh" 1-3 years before the next election.

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But politicians have a set date to be popular: in May 2015, the next General Election.

Bankers (current directors, on annual bonuses) have mainly a short term interest: this year's bonuses.

This different timing in essential: If the politicians know that it will not be possible to keep the bubble inflated all the way until 2015, they will prefer a correction in these first 1-3 years, and a "recovereh" 1-3 years before the next election.

Normally, this would be true.

But don't forget this is a coalition government, it needs to keep a much wider range of people happy than a majority government. Are you certain they'll last until 2015 if the LHA caps start being implemented as proposed?

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2007 - Bleak ?

It was a great year, I sold my over priced house to a greater fool and make some money out of gold/high interest rates. The bankers/government got the slap they deserved and a recovery was started,

The bleakness started when they started printing money and dropped interest rates to 0.5%

2007 - was a great year.

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This is just doing the groundwork to get the public/markets to accept more QE.

Remind people how bad things nearly got and how we were 'saved' by QE but there wasn't enough of it. Never mind, next time we'll just do it on a bigger scale and that will sort it ...

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  • 260 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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