Monday, October 15, 2007

Stephen King Says Hpc Close!

edge of the abyss?

nice to see stephen king writing about hpc!....seriously though we are on the verge of something very very nasty imho when the plumber and bt engineer both have 2 buy-to-lets as does the newsagent down the road you have to worry. Like before dotcom crash taxi drivers talking about shares.

Posted by taffee @ 07:48 AM (1084 views)
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6 thoughts on “Stephen King Says Hpc Close!

  • Here we have the MD of economics at HSBC arguing a correction while an estate agent argues the opposite.

    The majority of the population will believe the latter.

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  • It’s the easy credit – Stupid !
    Not – immigration, demographics, shortage of land etc etc.

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  • planning4acrash says:

    Oh great, he used the word Slump! That’s up to 20% fall in prices, vs a crash with 10% fall. When peep’s like King put the towel in you know that the party is over, because its people like him who decide to turn off the liquidity tap!! It doesn’t matter what the estate agent or man in the street think because the bankers choose how much cash is in the system and it is therefore them who determine house prices, because stupid consumers fed with VI nonsense hoover up any liquidity available.

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  • ‘Mis-pricing of risk’ is an ex-post academic term. The fly boys at the coalface (mortgage brokers & lenders) didn’t mis-price risk. They knew exactly what they were doing. They were lending to people who couldn’t repay in the knowledge that they would get their commissions and bonuses and meet their market-share targets before flushing all these toxic IOUs into international financial markets, where they became somebody else’s problem. The credit crunch is the latter fighting back, forcing the fly boys to go for ‘margins’ rather than for ‘market share’.

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  • Cletus Vandamme says:

    He does mention that the UK still has a shortage of housing though. This will limit the damage.

    20% fall? So that will bring the average house price down to about 200K. Given average salaries, a reasonable average house price needs to be around 100K. But that ain’t gonna happen, is it? Whether we get a crash or not, high house prices are here to stay – get used to it!

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  • planning4acrash says:

    Icarus, it is those who bought CDO’s from mortgage lenders who mis-priced risk.

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