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Bis Group Warns Of Risks Posed By Housing Loans

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GENEVA (AFP) - A report by the Bank for International Settlements voiced concern about the wider availability of housing loans, saying they exposed indebted owners and markets to greater financial risks.
Some recessions have been exacerbated by adverse developments in housing markets and the report raised the possibility that recent increases in borrowing and house prices "could unwind in ways that severely affect overall economic activity".
It also cautioned that "in many countries" financial institutions had not adequately assessed the impact of a rapid increase in interest rates combined with a strong fall in house prices.

Will Gordon sit up and listen to the banking community or will blind political ambition and committment to high house prices cause him to turn a deaf ear?

Edited by Realistbear

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Deaf ears all around.

Indebted "homeowners" when they realise the futile state of unpayable debt can walk away and leave whatever residual "value" there is on the 4x/6x salary mortgaged pile of bricks on a 125% loan to the bank, just like last time.

Some recessions have been exacerbated by adverse developments in housing markets.

Already happened. Nearly the whole of manufacturing has been reduced to desperately trying to cut costs in the face of ever rising costs and ever desperate employees trying to compete not only in a global marketplace but a local economy that is pricing them out of pensions, homes and a lifestyle. I know they mean demand falloff due to collapsing HP's but they really haven't thought the whole thing through.

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  • 312 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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