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Ash4781

Denmark, Uk Vulnerable To House Prices Fall (fitch Ratings)

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http://www.ft.com/cms/s/c927f8ae-3e00-11dc...00779fd2ac.html

“Monetary easing earlier in the decade did pump up housing markets,” Mr Coulton said.

;)

Denmark, Britain and New Zealand are the economies most vulnerable to a fall in house prices, says a report released on Monday by Fitch Ratings.

Does that make the UK second most vulnerable on the list ?

Edited by Ash4781

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Despite its housing overvaluation, France is considered only the eighth most vulnerable country overall, because levels of household debt, leverage and interest payments are relatively low.

The UK also has a buffer because of its high levels of household wealth. “Net wealth is the most comprehensive measure of household long-run solvency,” says the report.

Not especially bearish i dont think.

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Despite its housing overvaluation, France is considered only the eighth most vulnerable country overall, because levels of household debt, leverage and interest payments are relatively low.

The UK also has a buffer because of its high levels of household wealth. “Net wealth is the most comprehensive measure of household long-run solvency,” says the report.

Not especially bearish i dont think.

Hmmm, UK households have on average an incredibly high level of personal debt and lower savings than ever. Most of their 'wealth' comes from the equity in their overvalued property. If we're talking net wealth, then after you take away all their assets that they've leveraged themselves (ie borrowed to the hilt) to buy there isn't a lot left in the average household.

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Hmmm, UK households have on average an incredibly high level of personal debt and lower savings than ever.

I'm not sure this is true - the 'savings rate' is at historic lows, but that's the rate at which people are now saving. It doesn't tell us what the total amount already saved is. However, it's not that evenly distributed, so the key thing is sentiment - that is, would people who are currently saving in shares or bonds move into property if prices fell.

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Despite its housing overvaluation, France is considered only the eighth most vulnerable country overall, because levels of household debt, leverage and interest payments are relatively low.

The UK also has a buffer because of its high levels of household wealth. “Net wealth is the most comprehensive measure of household long-run solvency,” says the report.

Not especially bearish i dont think.

http://www.dbresearch.com/PROD/DBR_INTERNE...00000203236.pdf

“The enemy of the conventional wisdom is not ideas but the march of events”.

And of course, if anything else is going awry in the world economy, don’t call for the housing

markets to save the economies again. They are not waiting in the wings this time.

Edited by alabala

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