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gruffydd

Mortgage Lending Down Amid Warnings Of Second House Price Crash - Telegraph

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I keep reading that the terrible problem of house prices potentially falling would go away if only the bloody banks would start lending again.

The thing that keeps bugging me is .... given that the lending that drove the market to its insane highs was based on all sorts of cunning stunts like MBSs and CDOs etc. - which, as far as I can make out, meant in simple terms that banks were lending the same money out over and over again destroying their capital ratios and making themselves technically bankrupt when they stopped lending to each other - where do all the people clamouring for the banks to lend more think the banks are going to get the money from?

When these people are interviewed ad nauseam on the box, why doesn't anyone say to them - but where are the banks going to get the money to lend from? Interest rates are hardly encouraging savers.

Edited by Let's get it right

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I keep reading that the terrible problem of house prices potentially falling would go away if only the bloody banks would start lending again.

The thing that keeps bugging me is .... given that the lending that drove the market to its insane highs was based on all sorts of cunning stunts like MBSs and CDOs etc. - which, as far as I can make out, meant in simple terms that banks were lending the same money out over and over again destroying their capital ratios and making themselves technically bankrupt when they stopped lending to each other - where do all the people clamouring for the banks to lend more think the banks are going to get the money from?

When these people are interviewed ad nauseam on the box, why doesn't anyone say to them - but where are the banks going to get the money to lend from? Interest rates are hardly encouraging savers.

They don't care, I think Tom Cruise said it best ...

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  • 145 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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