Jump to content
House Price Crash Forum
Sign in to follow this  
Timm

A Nice Piece On The Credit Crunch

Recommended Posts

It's pretty much a summary of what we know already. However these bearish stories in the Economist or FT always ensure a lively Friday afternoon discussion if left carelessly unattended by the water cooler. If you want to get creative, you could get your highlighter out... :rolleyes:

http://www.economist.com/daily/news/displa...amp;top_story=1

"...In less time than it takes to get a good compass bearing, cheap credit and stable markets have given way to investor panic and a credit crunch.

So far the central bankers have concentrated on stemming panic by flooding financial markets with short-term liquidity... Yields on ten-year Treasury bills dropped to 4.52% on August 28th while stockmarkets fell sharply, though shares bounced back the following day. Wholesale panic could quickly return.

...Most important, the economy’s weakest link—the housing market—was in even worse shape than many realised. The pace of new-home construction plunged in July while the backlog of existing unsold houses rose to a 16-year high. House prices have kept falling.

A still-deepening housing bust left the economy vulnerable well before August’s crunch. And that crunch has made the prospects for housing much worse as mortgage instruments have disappeared, or become dramatically more expensive.

...If America faces double-digit falls in house prices, the economy, despite looser monetary policy, looks set to be weak.

...Although the scale of reckless lending to risky borrowers was bigger in America than anywhere else, house-price inflation has been more extreme elsewhere. Countries such as Britain and Spain are particularly vulnerable to a house-price bust..."

Edited by Timm

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 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.