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eric pebble

Moneyweek: Why The Uk's Property Downturn Will Be Worse Than America's

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Why the UK's property downturn will be worse than America's

Lurvely stuff.... :lol:

I find myself wishing I had a pound for every time Chancellor Alistair Darling blames the UK’s growing economic problems on those annoying Americans and their subprime crisis (as he did in last week's budget).

In fact, as is becoming increasingly obvious, the US and the UK are both suffering from a painful hangover after a huge borrowing boom.

http://www.moneyweek.com/file/43831/why-th...n-americas.html

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Eric, I see you are favouring the red to pruple end of the spectrum at this current time. It is St. Patrick's Day after all - how about a little green in that sig of yours.

Thanks for the red though - nice to see that you are celebrating the Welsh Grand Slam victory!

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Why the UK's property downturn will be worse than America's

Lurvely stuff.... :lol:

I find myself wishing I had a pound for every time Chancellor Alistair Darling blames the UK’s growing economic problems on those annoying Americans and their subprime crisis (as he did in last week's budget).

In fact, as is becoming increasingly obvious, the US and the UK are both suffering from a painful hangover after a huge borrowing boom.

http://www.moneyweek.com/file/43831/why-th...n-americas.html

Good read, thanks Eric.

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the US and the UK are both suffering from a painful hangover after a huge borrowing boom.

Actually I'd disagree with that.

The borrowing binge is over, but the UK economy hasn't made it home to bed yet, much less woken up with a hangover. Currently, it is crouching on the pavement outside the pub and vomiting in the gutter.

The real hangover won't arrive for a good twelve months or so. And after that, we have necrosis of the liver to look forward to.

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Actually I'd disagree with that.

The borrowing binge is over, but the UK economy hasn't made it home to bed yet, much less woken up with a hangover. Currently, it is crouching on the pavement outside the pub and vomiting in the gutter.

The real hangover won't arrive for a good twelve months or so. And after that, we have necrosis of the liver to look forward to.

'Fraid you're right Benj....

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Actually I'd disagree with that.

The borrowing binge is over, but the UK economy hasn't made it home to bed yet, much less woken up with a hangover. Currently, it is crouching on the pavement outside the pub and vomiting in the gutter.

The real hangover won't arrive for a good twelve months or so. And after that, we have necrosis of the liver to look forward to.

Heh heh excellent :) I bet it got in a fight with France ("leave it, it's not worth it!"), swallowed a botulism-infested kebab before being mugged of its taxi fair home too... what a state.

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Actually I'd disagree with that.

The borrowing binge is over, but the UK economy hasn't made it home to bed yet, much less woken up with a hangover. Currently, it is crouching on the pavement outside the pub and vomiting in the gutter.

The real hangover won't arrive for a good twelve months or so. And after that, we have necrosis of the liver to look forward to.

quite the poet benj :lol:

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Eric, I see you are favouring the red to pruple end of the spectrum at this current time. It is St. Patrick's Day after all - how about a little green in that sig of yours.

Thanks for the red though - nice to see that you are celebrating the Welsh Grand Slam victory!

Cymru am byth!

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Heh heh excellent :) I bet it got in a fight with France ("leave it, it's not worth it!"), swallowed a botulism-infested kebab before being mugged of its taxi fair home too... what a state.

Not forgetting the dose of clap from doing that dirty bird behind the wheelie bins at the back of the night club.

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Actually I'd disagree with that.

The borrowing binge is over, but the UK economy hasn't made it home to bed yet, much less woken up with a hangover. Currently, it is crouching on the pavement outside the pub and vomiting in the gutter.

The real hangover won't arrive for a good twelve months or so. And after that, we have necrosis of the liver to look forward to.

Classic.

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Moneyweek again... :rolleyes:

The article would be a bit more credible if they had looked into the recent history of the US and UK markets.

eg if they had looked at the real estate building bubble in the US when their interest rates were very low. This has caused huge oversupply of new properties in the US.

Then look at the differences in demographics before making comparisons for the future of both markets.

I mean, will the way the courts deal with defaulters (as moneyweek suggests) really make a huge difference in the UK property market?

A defaulter that gets repossessed is out of the market and presumably potless.

How is pursuing an evictee going to make a huge difference? (compared to NOT pursuing them)

AFAIK the repo rate is still way below 1% in the UK.

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I mean, will the way the courts deal with defaulters (as moneyweek suggests) really make a huge difference in the UK property market?

Yes, I think it probably will. Involuntary repossessions are obviously going to happen anyway, but the question is how hard people will try to hold on when it is in the balance. In America, people like Jim Cramer have been saying to people that they should walk away from their house before they walk away from credit card debts. The fact is that they have been doing it on a large scale already. It means that in America the banks take the biggest hit, but in the UK the ordinary Joe is the one who will suffer even more. Big political implications.

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Yes, I think it probably will. Involuntary repossessions are obviously going to happen anyway, but the question is how hard people will try to hold on when it is in the balance. In America, people like Jim Cramer have been saying to people that they should walk away from their house before they walk away from credit card debts. The fact is that they have been doing it on a large scale already. It means that in America the banks take the biggest hit, but in the UK the ordinary Joe is the one who will suffer even more. Big political implications.

It just stinks.

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  • 293 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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