Sunday, October 21, 2007
Economy is strong, there are no triggers, UK property can defeat gravity… forever!
“Item does not believe that the tighter lending conditions for homebuyers will lead to a serious correction in UK house prices,” the report says. “With the labour market strong, it is unlikely there will be a major housing recession.” Of course not, house prices have been underpinned by hard cash savings of the UK households. We do not have £2tn in debt and UK public finances are not in the red. And of course interest rates have peaked and can only go down. Only problem, David has been saying that for 2 years and proven wrong every time. Personal debt has soared, mortgage rates have DOUBLED since 2004 and government spending is now a national emergency. Do not understand how this charlatan can still write in the Times.