Wednesday, November 14, 2007

Contagion, contagion, contagion

HSBC warns loan problems are spreading

The UK-based bank warned that problems associated with the subprime mortgage market in the US were spreading to other areas like credit cards and car loans as it reported a higher than expected third quarter writedown of $3.4bn

Posted by dohousescrashinthewoods @ 12:53 PM (905 views)
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2 thoughts on “Contagion, contagion, contagion

  • “Stephen Green, chairman [of HSBC], […] said that while delinquency rates were up, they were still lower than the level seen in previous downturns.”

    Delinquency rates are rising. It’s only a matter of time before they match or exceed the levels seen in previous downturns. That will make the banks stop lending even more, and the vicious circle of the credit crunch will reverse the virtuous circle of credit expansion. But it’s ok, house prices never fall…

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  • I’ve just had a chat with an old friend who has net assets that are around £1m, is debt free, and has secured planing consent for two houses in his garden (he has no mortgage) – he wants to borrow £250k to fund the construction.

    It should be a rubber stamp job – but Barclays are giving him all sorts of grief – meanwhile, Barclays are taking longer to clear the cheques I’m paying in (I use postal banking)..

    .. I’m a tad concerned – this doesn’t feel right..

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