Thursday, October 25, 2007

It might not be just houses that take a tumble

Britain 'on brink of credit crunch slump'

The UK economy is still at danger from the world credit crunch and faces its first recession for 16 years, according to the Bank of England and a leading investment bank.

Posted by garyb @ 07:59 PM (928 views)
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3 thoughts on “It might not be just houses that take a tumble

  • The reality is Britain has a basket case balance sheet.

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  • The US sub prime problem was just one of any number of possible triggers to this crisis – but it and they are not to blame.

    The real cause is low interest rates coupled with lax lending leading to inflated asset prices and its sister over indebtedness. We can’t blame the Yanks for that, just as we can’t really blame them for the Iraq war – if Blair tells them we have evidence of weapons of mass destruction at Saddam’s disposal.

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  • Just a thought – there used to be quite a few folks posting on here who basically abandoned this site and bought themselves des-res conversion flats in “up and coming” parts of London.

    Does anyone remember who they were? nooneno was one of them, but I can’t remember the others. Would any of them like to come back and comment now the crash is upon us? It’s not to gloat but reflect on what pushed them to lose their nerve. I put in an offer on a place a few months ago and now I’m really really relieved that my lowish offer was turned down.

    For a while I was feeling like a leper, living and working in London but not owning property – and that’s exactly how the media wanted to portray first time buyers who were refusing to buy.

    Therefore reflecting on the now extinct house price boom, I will agree with most that the prime driver has been a heady mixture of cheap credit and an unrelenting property porn banquet. Central bankers have never been quite as bright as they pretend, but the media have – if I were to point a finger at anyone, I would save the government’s mouthpiece – the BBC – are the biggest culprits. They are the ones who should be facing a commons select committee to find out why they took the pro-speculation stance that they did.

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