Sunday, February 10, 2008

When the sunday papers predict a crash you know it is going to happen

Atlantic drift: will UK housing market follow America into a slump?

We all know there are no fundamentals underpinning UK house prices, just psychology and greed."growing evidence that UK housing market is already slowing sharply. Prices have slipped for 3 consecutive months and repossessions were already at a 14-year high in 2007. In the US, early in 2007, analysts were puzzled that the fallout from sliding prices did not appear to be hitting consumer spending or jobs, and Ben Bernanke remarked in the spring that he thought the problem was 'largely contained'. Less than 6 months later mortgage defaults sparked a financial crisis; by the end of the year, joblessness was rising. In other words, a housing market downturn can itself sow the seeds of a broader economic downturn - especially if it has been pepped up by an outbreak of profligate lending"

Posted by confused76 @ 07:26 PM (1005 views)
Please complete the required fields.



6 thoughts on “When the sunday papers predict a crash you know it is going to happen

  • What are we to take out of this…

    In the US, early in 2007, analysts were puzzled that the fallout from sliding prices did not appear to be hitting consumer spending or jobs, and Ben Bernanke remarked in the spring that he thought the problem was ‘largely contained’.

    He got it totally WWWWRRRROOOOONNNNNNGGGG!

    Alistair Darling played down the risks of the credit crunch to housing and the UK economy in a speech to manufacturers’ body the EEF last week. ‘Housing market conditions today are very different to those we saw in the early Nineties,’ he said. ‘Interest rates remain at comparatively low levels – as do mortgage rates. And unemployment is currently at a 30-year low.’ Darling added that lenders on this side of the Atlantic have been ‘more responsible in taking account of an individual’s ability to pay’.

    He will also get it totally WWWWRRRROOOOONNNNNNGGGG!

    They both no nothing of the future.

    Reply
    Please complete the required fields.



  • “Alistair Darling played down the risks of the credit crunch to housing and the UK economy in a speech to manufacturers’ body the EEF last week. ‘Housing market conditions today are very different to those we saw in the early Nineties”

    Yes, i also think they are different, just a bigger bubble, people more indebted, that’s the fundamental difference, in my humble opinion of course

    ..

    Reply
    Please complete the required fields.



  • crash bandicoot says:

    This time last year we were the loonies – posting exactly this kind of thing. Now it is regularly in the mainstream press, but still the crash has not fully started. We are still in a state of NIMBY denial – “well I know that houses are overpriced but MY house is different” (perhaps it is in York or Warrington). The period of stagnation will end as reality sinks in then the crash will begin in earnest.

    Reply
    Please complete the required fields.



  • “…The housing boom, fuelled by reckless lending, began to turn to bust more than two years ago; but only toward the end of last year did unemployment begin to rise…”

    And The Times today say that 2/5 of employers are predicitng shedding staff?

    Reply
    Please complete the required fields.



  • There is denial at the moment, but that will evaporate soon when the stampede for exit begins.

    Reply
    Please complete the required fields.



  • But, but, Anne Ashworth said last week in the Sunday Murdoch, that all is well. Will all recent buyers
    encouraged by Anne’s continual propaganda feel a little upset right now ?

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>