Friday, June 12, 2009
Property Still 25% Overvalued
Nothing new, compares property to gold, considers that todays low interest rates have only one way to go and throws in a sprinkling of loan to income ratios and concludes, as anyone who is not in denial concludes, that a property that is already down 21% is still 25% overvalued. Assume once again this is why Moody's said, "the assumption now is 40% falls" but stress tested for 60% just as the FSA stress tested for 50%. Eventually the REALITY will filter through to mainstream thought and we can all get back on with trying to pay for the mess the UK got in trying to support an inflated property market.