Thursday, July 31, 2008

Andy Hornby has run out of good news

HBOS's outlook for the UK housing market is not pretty

The drip-drip approach to bad news continues at HBOS and that's aside from the 72pc collapse in half year pre-tax profits to £848m reported this morning. HBOS chief executive Andy Hornby Andy Hornby has run out of good news For the first time, chief executive Andy Hornby has given the market an indication on how far he expects house prices to fall this year and next.

Posted by housebear @ 11:05 AM (883 views)
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12 thoughts on “Andy Hornby has run out of good news

  • Has anyone else noticed that not only has Andy Hornby run out of good news, ALL of the usual property cheerleaders have gone very very quiet.

    Look back over all of the recent articles and you’ll see that NONE of them are written by the respectve news sources property guroos.

    We won. They lost.

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  • paul so thats respective rather than respected? Think its a little premature to have a victory parade- i suppose that depends on what you are measuring it against. I think we can only declare a victory once the falls are 25% +.

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  • As we all know “it ain’t over till the fat lady eats her hat!”.

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  • beartil2010 says:

    I had not noticed that i. there are more articles today (so no discussions are building up) and ii. they are unremittingly gloomy (which is fine by me).

    I don’t think it’s victory parade time – it’s like the sprinter you put a bet on has taken a massive lead but is still half way through the race so, while feeling confident and rubbing your mates faces in it as they’ve stopped tealling you ‘you have no chance’, you still have to wait a bit before you can really start jumping up and down.

    I did think, looking at the HBOS results in detail, they look bad and look like they will get worse next time. Also, Deutschebank (according to the guy at creditwritedowns, whose blog I like) has a subsidiary that has massive exposure and hasn’t reported a single loss or writedown yet.

    The Oz banks have started to admit exposure (which is causing their market to get really, really worried) and to their credit they have, on specific assets reported, taken massive cuts rather than piece-by-piece repricings. I think there is a lot more hidden debt – we’ve already gone from $400 billion to $480 billion over the last week and a half!!!

    Bring on the crash.

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  • mark wadsworth says:

    I’m guessing HBOS will release their July index on the morning of the next HPC announcement then?

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  • Why is there this constant surprise that property prices are falling? Over time property prices go up, reach a peak, and then fall.This can be seen several times over the last 50 years.
    Did all the pontificating experts think that they had reinvented the wheel and the bubble would carry on expanding? The only problem with this boom and subsequent bust is that the entire financial edifice that encouraged it’s growth has been built on what can only be regarded as deceit and gross dishonesty. The fallout unfortunately, is unlikely to distinguish between the innocent and guilty. If I was to sell dodgy bits of paper on e-bay, claiming they were worth a fortune, I would be arrested. It seems to me many financial institutions indulged in the exact same caper, pulled in massive bonuses, and were regarded as heroes.
    What a curious world to inhabit.

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  • crash bandicoot says:

    mark w, they really have little alternative but to hope. Unfortunately they are toast whichever way the rate goes. If it goes up then their overstretched customers default because their mortgages are too expensive. If it goes down then their overstretched customers default because everything else they buy (import) is too expensive. It would appear that recklessly advancing truckloads of money to your customers is not a sound business plan for a bank after all. Who’d have thought it!

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  • beartil2010 said…

    “I think there is a lot more hidden debt”

    There certainly is — and how many trillions? All floating around in the West and the East and anywhere else that has banking come to that. Even this fiigure is speculative. This is what happens with compulsive ‘alleged’ non-truths. The great remedy is to print more of the stuff and after that,no doubt to re-name it in its worthlessness. This is turning into an economic ‘black hole’. Apart from this everything is fine (don’t want to upset the holiday season)

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  • last_days_of_disco says:

    We someone to play Krusty and eat a fake hat and put it on youtube. People may think its real.

    Really do you know anyone that looks just like Krusty?

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  • Here ya go.

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  • last_days_of_disco says:

    errate “We someone” should be “We get someone”

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  • but house prices are going up 25%, I read it in the express….so it must be true!

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