Sunday, Aug 06, 2006

Time to get biblical: the day of debt reckoning is nigh

Observer: Time to get biblical: the day of debt reckoning is nigh

For now, housing market demand exceeds supply. Prices are rising by 8 per cent annually. Whether the market can withstand a further interest rate hike is a tight call.

Posted by rod, jane and freddy @ 02:23 AM (470 views)
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4 Comments

1. The Bald Man said...

Gordans legacy is a lage civil service, wasted public spending, bankrupt pension schemes and debt for the future. By the way why do these commentators insist demand is out exceeding supply. Why are so many house unsold?

Sunday, August 6, 2006 11:17AM Report Comment
 

2. paul said...

"For now, housing market demand exceeds supply. Prices are rising by 8 per cent annually. Whether the market can withstand a further interest rate hike is a tight call."

Supply exceeds demand in many sectors, particularly new build 1- 2-bedroom flats. Rising 8% anually? Only by deft statistical reasoning.

The question now isn't "Can the market withstand another rate hike?" it's "Can the market withstand a rate hike?".

There's veiled optimism in the article that the housing market can pull through but then there's no logic put forward to support it.

Sunday, August 6, 2006 11:17AM Report Comment
 

3. Such_short_memories said...

I don't subscribe to this bandying about of the term 'hike' in the way the media does. In my opinion what we witnessed on Thursday by the BOE was more a rate 'increase' rather than a 'hike'. The definition of true hike should be an upward movement of much greater magnitude than the 0.25% 'nibbles' we see. What happened on Black Wednesday in 1992, now that was a true hike.

Sunday, August 6, 2006 12:55PM Report Comment
 

4. paul said...

It's interesting that (as I predicted) the BBC would start calling it a "shock rise in rates"

http://news.bbc.co.uk/1/hi/business/5250250.stm

Sunday, August 6, 2006 07:50PM Report Comment
 

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