Sunday, Dec 20, 2009

Goodbye to 'Extend and pretend.'

Telegraph: UK property black hole threatens banks' lending

"Britain is at risk of a mass sell-off of distressed properties that would send values into a double dip and impair the lending ability of banks. " Well zip-a-dee-do-dah. Al-right they're talking about commercial property but don't imagine residential would escape this gravity well if indeed this speculation were true.

Posted by tpbeta @ 10:07 PM (1633 views)
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1. Paul said...

Same does apply to residential.

For the time being, a nod and a wink between the government and the banks along the lines of "we'll keep printing money, you keep pretending you're profitable" has worked nicely, but now the government has used all of the the fairy dust from its magical printing machine.

Sunday, December 20, 2009 10:57PM Report Comment

2. confused76 said...

"Their exposures are almost six times greater than in the 1990s recession. "

no worries... all underwritten by the taxpayer


Monday, December 21, 2009 08:16AM Report Comment

3. paul said...

Monday, December 21, 2009 08:19AM Report Comment

4. hpwatcher said...

So what they are saying is to support unrealistic and high commercial property prices?

Why can't these people butt out and let the market forces decide?

Keeping prices artificially high isn't going to help anyone.

Monday, December 21, 2009 09:44AM Report Comment

5. mark wadsworth said...

Why can't extend and pretend go on for ever? All they have to do is scrap Business Rates, make it illegal for banks to repossess and offer landowners state-backed loans at 0.5% interest.

Monday, December 21, 2009 10:13AM Report Comment

6. estrader said...

"Lenders may be forced into selling a wave of properties as the stock of repossessed assets grows, according to the Bank. This could disrupt the supply-and-demand balance and place "significant downward pressure" on recovering property values."

Hilarious....So now supply and demand has nothing to do with being a small island with an exploding population etc...

Monday, December 21, 2009 05:08PM Report Comment

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