Jump to content
House Price Crash Forum
crash2006

Markets Tumble As Credit Concerns Spread

Recommended Posts

http://www.ft.com/cms/s/e2ab1b62-3a13-11dc...2Fhome%2Feurope

US stocks suffered their worst fall in nearly five months on Tuesday after fears that problems in the mortgage market are spreading and investor appetite for complex debt instruments is drying up

its all fallign apart they jus tcan't hide it no longer, now we just need it to feed thru to the local.

Share this post


Link to post
Share on other sites
It's really odd that noone else thought this was a big deal.

It's a sign of what's to come in the UK.

Will this spell the deathknell of higher interest rates.

Will the Banks use lowering interest rates to kickstart the ecomomy yet again?

Share this post


Link to post
Share on other sites
Will this spell the deathknell of higher interest rates.

Will the Banks use lowering interest rates to kickstart the ecomomy yet again?

IMO a stock market correction is what they're waiting for in order to justify the next round of inflation.

Credit markets, housing (US) and stocks. Needs all 3 to be hit and then it's inflate, inflate and inflate some more IMO.

Share this post


Link to post
Share on other sites
Guest AuntJess
It's really odd that noone else thought this was a big deal.

It's a sign of what's to come in the UK.

Fingers crossed! :D

Share this post


Link to post
Share on other sites
IMO a stock market correction is what they're waiting for in order to justify the next round of inflation.

Credit markets, housing (US) and stocks. Needs all 3 to be hit and then it's inflate, inflate and inflate some more IMO.

Is this the NWO? Is this why Brown and other heads of state are confident that there will be no boom and bust - are they engineering a constant boom in something?.

Maybe the new world order is about ensuring that 'something' is always driving the economy - housing, the SM, assets anything but gold.

That will keep the plebs busy trying to make their earned fiat money from evaporating into nothingness - result = no one saves and even if they did it would lose value so quickley it becomes worthless - with the population constantly struggling to catchup there is no time for them to think or do anything other than take in the TV with state controlled propaganda.

HAL

Share this post


Link to post
Share on other sites

For all those who laugh at RB for sensationalising the situation here is what the CEO of Contrywide says about the situation in the US

“We are experiencing home-price depreciation almost like never before, with the exception of the Great Depression,” he said.

You couldn't make this up . . . .

SB

Edited by strbear

Share this post


Link to post
Share on other sites
http://www.ft.com/cms/s/e2ab1b62-3a13-11dc...2Fhome%2Feurope

its all fallign apart they jus tcan't hide it no longer, now we just need it to feed thru to the local.

Ambers suggests that Great Crash 2 will not be a local event. Gordon is riding high at present with only early signs of a HPC and reposession activity. Sterling is still seen as being unaffected by the global fall out as if our housing market was still a miracle that will last forever:

http://blogs.telegraph.co.uk/business/ambr...edthebubble.htm

Ambrose Evans-Pritchard
More Business blogs
Has Bear Stearns finally popped the great
world bubble
?
Posted by Ambrose Evans-Pritchard on 04 Jul 2007 at 12:06
Tags: Economics, World economy, Debt, stock markets, Bear Stearns, Credit markets, Subprime market, Bonds
Is this the 'Big One'? Is the Bear Stearns blow-up the moment when America’s subprime debacle spills over into the global credit markets and pops the greatest bubble of all time?
....../
The creditors orchestrated a quick cover up, but the CDO cat is already out of bag. We now know that some $2 trillion of subprime and 'Alt A' mortgage debt is falsely priced on the books of banks and funds
worldwide
. Worse is surely to come. Bank of America warns that $500bn of adjustable mortgage debt in the US will be reset upwards in the second half of this year by an average 2 percentage points, and a further $700bn next year.

Warren Buffett also sees the world in terms of a bubble. No safe havens?

Share this post


Link to post
Share on other sites
For all those who laugh at RB for sensationalising the situation here is what the CEO of Contrywide says about the situation in the US

You couldn't make this up . . . .

SB

I was tryig to find the article with this in . Have you a link please?

Share this post


Link to post
Share on other sites
For all those who laugh at RB for sensationalising the situation here is what the CEO of Contrywide says about the situation in the US

You couldn't make this up . . . .

SB

Indeed. Great Crash 2 should not be underestimated. However, you have to make allowances for the Neithers and Bulls (a dying breed?) as they will hang on to the very last before admitting that there is a full scale crash unfolding. My suspicion is that many of the Neithers have bought into the miracle and are overgeared OOs. Some may even have BTLs which must rank as the worst investment under the sun at this point in the crash. I think they like to sit on the fence so they can base their "forecasts" on hindsight. Others have a rabid anti-American stance that takes an economically naive view of the global economy thinking that the US can "dissappear" as a trading nation without throwing the world into a svere depression. They see everything as an "oil grab" without understanding that the big players in oil are now Russia, BP, Royal Dutch Shell and Total with the US oil companies having no less an interest in lining the rich Sheiks and Mullah's pockets with cash that should be used to improve the lives of the Arab people in general.

The magnitude of the problem is unprecedented and the most remarkable aspect about all of this is the complacency in the UK where the pound soars on the back of HPI and the perception that, somehow, the UK is immune from the global shakeout in the credit markets.

http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

Share this post


Link to post
Share on other sites

I agree strbear

As CEO countrywide said

“We are experiencing home-price depreciation almost like never before, with the exception of the Great Depression,”

You couldn't make it up!

I think that the link I found above originally from Moneyweek from same CEO is a little more measured although no less impactful.

Certainly though hosing subprime bleeding into prime even in small amounts allied to another major event resultant from subprime, Credit Crunch and stricter lending criteria or god forbid another war or a natural catastrophe which could be the excuse banks calling in debt. Then the tranference of wealth will begin in earnest.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 350 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.