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Realistbear

Mortgage Federation Europe Announces Cancellation Of H P C

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http://investing.reuters.co.uk/news/articl...AL-PROPERTY.xml

European property crash no longer likely

Fri Sep 1, 2006 1:59 PM BST166

By Andrew Hurst, European banking Correspondent
ZURICH (Reuters) - It was supposed to be a time-bomb striking fear into the hearts of European lenders as a property bubble looked ready to burst and leave banks holding billions of dollars worth of bad debt.
But with property prices still rising from Dublin to London to Madrid, although at a slower pace than earlier in the decade, signs are that a soft landing may spare banks the hefty debt write-offs that followed a market meltdown in the early 1990s.
Even as interest rates rise in the United States and Europe, the latest tightening in monetary policy may not be as severe as in previous counter-inflationary cycles.
"Although rates are rising, they are still affordable ...
What matters to borrowers are monthly (mortgage) payments, and these are at relatively reasonable levels,"
said Simon Whalley at the European Mortgage Federation in Brussels.
Mainstream lenders also appear to have been more cautious in their lending policies than in the past.
"Risk management techniques have improved since the early 1990s after the crash. If one mortgage payment is missed, banks want to see what is going on straight away," said Whalley.
In Britain fewer borrowers have taken on 100 percent mortgages than in the late 1980s boom, leaving them less exposed to the risk of "negative equity", when the price of a property sinks below the value of the loan taken out to buy it.
In Ireland, where house prices are still rising by 15 percent a year, economic data show that households are saving about 12 percent of their disposable income, a high ratio that gives many borrowers leeway as interest rates rise. Continued...

Not sure what to say about this cancellation announcement. :blink:

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rubbish - its gonna happen. Nothings changed. Although business for me is booming at present bomb blast protection film and security measures for cars. Crime will rise and the perception of it so we should be OK - fingers crossed. ;)

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"we anticipate one or more rate cuts in the near future"

"rates will remain pretty stable for the coming term"

"we see this as a one off 'fine-tuning' rise"

"the market can absorb a couple more rises"

"this period of rises has had a minor impact on the edge of the market and some lenders profitability"

"oh f***"

and the next V.I. announcement is.........................................

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Not sure what to say about this cancellation announcement. :blink:

It's the continuing redefinition of affordability. Affordable is now defined as 'temporarily able to service historically huge loans at generationally low interest rates'.

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Credit where credit's due - I am very hard on RB for what I consider to be his selective posting and spin, so allow me to congratulate RB for a spin-free post of a report which does not support his views or advance his cause.

Thanks RB.

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Credit where credit's due - I am very hard on RB for what I consider to be his selective posting and spin, so allow me to congratulate RB for a spin-free post of a report which does not support his views or advance his cause.

Thanks RB.

No--it IS spin because my comment at the bottom suggests the article does not make sense. All opinion is spin because no one can come to a topic without presuppositions, prejudices and a vested interest. <_<

Un-spun is posting the link only. I did not cut and paste the 2 following pages which was selective editing..... <_<

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It's the continuing redefinition of affordability. Affordable is now defined as 'temporarily able to service historically huge loans at generationally low interest rates'.

Now this is a very valid point.!!

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No--it IS spin because my comment at the bottom suggests the article does not make sense. All opinion is spin because no one can come to a topic without presuppositions, prejudices and a vested interest. <_<

Un-spun is posting the link only. I did not cut and paste the 2 following pages which was selective editing..... <_<

RealistBear, you really don't know what spin is, do you.

It is not spin to say, here's an article and here's my opinion of it.

Spin is subtly (or in your case, not so subtly) misrepresenting the article and distorting its meaning so that it appears to support your own position.

Selective quoting is not the same as only quoting a portion of the article - there is nothing wrong with that, as long as it does not give a false impression of the article as a whole. Selective quoting, as I'm sure you know, is quoting only those parts of the article which support your own position (e.g. going through a list of house price statistics and only quoting those which show falls, even if this gives a false picture of the overall situation).

Edited by Immigrant

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No--it IS spin because my comment at the bottom suggests the article does not make sense. All opinion is spin because no one can come to a topic without presuppositions, prejudices and a vested interest. <_<

Un-spun is posting the link only. I did not cut and paste the 2 following pages which was selective editing..... <_<

RB posts the source and selected extracts with his comment but has made the information available to others to view - this is a fair position to take.

If the article says anything it is that the same divisions of opinion are still entrenched amongst the observers of both sides. I did not see any data in the article which was ground breaking or has not been commented upon before.

While it is true that all people will bring some preheld view or opinion to an argument one would hope that nobody would be blind enough to continue to hold their position in the face of overwhelming evidence of the contrary position. That would be pure prejudice without reason.

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  • 302 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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