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King Raises "spectre Of A Collapse" In House Prices

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It's not on their website yet but the front page of the Mail has the headline :

BANK CHIEF'S DEBT WARNING

Mervyn King: Signs are a potentially large social problem is arising

The most interesting bit is 3 paragraphs down :

The country's most powerful banker also issued a veiled warning to house-owners not to rely on values climbing indefinitely.

His judgment that current prices "seem remarkably high" raised the spectre of a collapse which could plunge large numbers of families into negative equity ............

I wonder what effect that may have on sentiment from a paper with the second largest circulation in Britain?

PS Page 2 has the headline :

Interest rates likely to rise soon
B)

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Quality stuf..

It made comments also about how he is normally borring and wouldn't make such comments..

He's been saying it for years..

What is quite funny is that the company bull who likes to snear about his (not very educated) view on housing whenever the halifax tells him what he wants to hear..

HAS FOR THE FIRST TIME IN 2 YEARS NOT GOT THE DAILY MAIL ON HIS DESK.

Bless him..

Did the BBC say anything this morning... or did they crank out their fleet of high speed transports to enter panic mode.

Powering at massive velocitiies toward all of the mortgage lenders.. to borrow.. someone... anyone... to give the entire morning news slots over to someone who can say how fabulous it is that house prices are going up.. that price drops can be looked at as inflation and that we must all borrow vast sums and offer over the asking price

I can see the mad eyes, the veins stading out as the produces screams.."MOVE... MOVE... MOVE...MOVE.." As the entire bbc shuts down to clear the halls... to give the VI the best route through..

I hate labour, in all of the meanings of the word. That the prat Brown might be my PM fills me with such rage that I fell crazy..

The BBC.. well.. I wouldn't pi** on any of them if they were on fire..

But if they were not on fire I would. :)

RAGE... lol

At least the AMEX, Nationwide, IMF and now old Merv..

They all say it is amongst us..

Edited by apom

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Certainly it does look like King is priming the population for a rate rise.

The only question is whether he wimps out or actually does it.

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Rates will rise. He has no choice as it is his only weapon against inflation, his primary target. This is the best news for months for those looking for housing to come down to affordable levels. :)

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Certainly it does look like King is priming the population for a rate rise.

The only question is whether he wimps out or actually does it.

You say "question" like he has a choice in the matter - he does not!

If inflation looks like it is going to overshoot 2% (which he has said it does) then he has to raise interest rates.

Nationwide have already increased mortgage rates by 0.25% in the last month:

http://www.housepricecrash.co.uk/forum/ind...showtopic=29548

Edited by King Of Fools

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Certainly it does look like King is priming the population for a rate rise.

The only question is whether he wimps out or actually does it.

I think he will do it. I am getting the impression that central bankers are not as soft as we take them for. Softly spoken, yes, that goes with the job, but soft, no I don't think so. They are driven by data, hence to interest in the ONS deflator.

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Guest Charlie The Tramp

It's not on their website yet but the front page of the Mail has the headline :

Daily Mail Article

The bleak picture was made worse by figures showing soaring numbers of people struggling to keep up mortgage repayments. The number who face losing their property is now at its highest level since the dark days of the last recession in the early 1990s.

Mr King said: 'The proportion of unsecured debtors reporting their debt as a serious problem has gone up. The number of calls to the National Debt Line has risen quite sharply, so I think the signs are that a potentially large social problem is materialising, with many households getting into difficulty with their debts.'

Any rise in interest rates, a possible result of soaring fuel prices adding to inflation, would deepen the crisis.

The Insolvency Service says a typical bankrupt is a 41-yearold man with debts of about £46,000. But the numbers of people between 18 and 29 are rising rapidly, from 7.9 per cent in 2001 to 18.7 per cent today.

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Quality stuf..

It made comments also about how he is normally borring and wouldn't make such comments..

He's been saying it for years..

What is quite funny is that the company bull who likes to snear about his (not very educated) view on housing whenever the halifax tells him what he wants to hear..

HAS FOR THE FIRST TIME IN 2 YEARS NOT GOT THE DAILY MAIL ON HIS DESK.

Bless him..

Did the BBC say anything this morning... or did they crank out their fleet of high speed transports to enter panic mode.

Powering at massive velocitiies toward all of the mortgage lenders.. to borrow.. someone... anyone... to give the entire morning news slots over to someone who can say how fabulous it is that house prices are going up.. that price drops can be looked at as inflation and that we must all borrow vast sums and offer over the asking price

I can see the mad eyes, the veins stading out as the produces screams.."MOVE... MOVE... MOVE...MOVE.." As the entire bbc shuts down to clear the halls... to give the VI the best route through..

I hate labour, in all of the meanings of the word. That the prat Brown might be my PM fills me with such rage that I fell crazy..

The BBC.. well.. I wouldn't pi** on any of them if they were on fire..

But if they were not on fire I would. :)

RAGE... lol

At least the AMEX, Nationwide, IMF and now old Merv..

They all say it is amongst us..

Great stuff APOM

I agree 100%

CS

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  • 301 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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