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Sledgehead

Nationwide: What They Thought Last Year Vs. What They Said

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(Commenting on their 42% reduction in mortgage lending)

What they say NOW:

"We were concerned this time last year about what would happen in the housing market so we made a clear decision that we wanted to concentrate on quality," Nationwide's Stuart Bernau said. (Nationwide, 18/05/2006 )

What they were telling everybody else back THEN:

“When seasonal factors are taken into account, the price of the average house fell by 0.6% in March. ....looked at in context it confirms our view that the market is experiencing a soft landing. .... and is consistent with our expectation that house price movements in 2005 would be characterised by rises in some months and falls in others. Seasonal adjustments hide the fact that the average house price actually increased by about £1,000 in March. ....“While levels of housing market activity slowed in January ... we do not believe that this signals a continued slowdown in activity. Rather we expect the number of approvals will have bounced back in March to reach about 84,000, given the favourable economic conditions of low unemployment and relatively high consumer confidence. ... Recent steady growth in earnings and rising employment and equity prices has helped to underpin consumers’ confidence. Nationwide’s own survey of confidence showed that consumers remain optimistic ( Nationwide, Spring 2005 )

Edited by Sledgehead

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(Commenting on their 42% reduction in mortgage lending)

What they say NOW:

"We were concerned this time last year about what would happen in the housing market so we made a clear decision that we wanted to concentrate on quality," Nationwide's Stuart Bernau said. (Nationwide, 18/05/2006 )

What they were telling everybody else back THEN:

“When seasonal factors are taken into account, the price of the average house fell by 0.6% in March. ....looked at in context it confirms our view that the market is experiencing a soft landing. .... and is consistent with our expectation that house price movements in 2005 would be characterised by rises in some months and falls in others. Seasonal adjustments hide the fact that the average house price actually increased by about £1,000 in March. ....“While levels of housing market activity slowed in January ... we do not believe that this signals a continued slowdown in activity. Rather we expect the number of approvals will have bounced back in March to reach about 84,000, given the favourable economic conditions of low unemployment and relatively high consumer confidence. ... Recent steady growth in earnings and rising employment and equity prices has helped to underpin consumers’ confidence. Nationwide’s own survey of confidence showed that consumers remain optimistic ( Nationwide, Spring 2005 )

Back for one of your rare appearances Sledgehead? Nice catch. liar liar pants on fire to the banks... so if they were lying then and now they are saying what they meant was that they were concentrating on quality, what do you reckon what they really mean now is "we are sh1tting ourselves about a down turn, and will need every excuse and platitude we can buy off the back of a truck for the shareholders meeting?"

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Clearly the massive loss of business to competitors is causing them huge embarassment, not to mention grief from shareholders. Quite aside from the fact that they were misleading borrowers, they were also wrong about their market timing. Whilst that proved good news for borrowers, it was clearly bad for shareholders, who found themselves shut out of a lending boom. Whilst that may have been bad news for shareholders this year, one can't help feel worse may be to come. Management who balls up are no different from any other speculator: they hav ea tendancy to shut the door and tear after that bolted horse. For Nationwide's management that could mean a big push to grab back lost market share. That would undoubtedly imply a reduction in credit quality at the very time when interest rates look set to rise and repossessions are soaring. Poor old shareholders.

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Back for one of your rare appearances Sledgehead? Nice catch. liar liar pants on fire to the banks... so if they were lying then and now they are saying what they meant was that they were concentrating on quality, what do you reckon what they really mean now is "we are sh1tting ourselves about a down turn, and will need every excuse and platitude we can buy off the back of a truck for the shareholders meeting?"

I think this is more accurate than anyone probably could imagine

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Just to be clear, Nationwide is still a mutual so doesn't have any shareholders. It's owned by it's members i.e. the borrowers and savers, so in reality the management isn't really answerable to anybody.

spiv.

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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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