Northern Rock

[AtW]

I couldn't give a fiddler's f@rt what effect it has on the market as long as it has zero influence on me.

It will have, albeit indirect - when market falls down and people start cutting on unnecessary expenditure one of the first things they will cut will be their mobile phones bill, this means less investment in infrastructure and Habib on work permit will be doing your job pal.

People will only be affected if they are forced or even want to sell.

People might not handle repayments - there will be more and more of those as they come off cheap rates and find that they can't refinance on the cheap, so suddenly millions will have to pay a lot more than they used to.

Furthermore - those that will get negative equity (easy as Northern Rock itself was giving money to 100% or more value of the house) won't be able to sell house to get new job when they will be out of current one == cut down mobility.

Of course you, in your infinite stupidity, think that it won't affect you. It will for sure.

[AtW]

If he was Chancellor we'd be back to central planning quicker than a turd down a drain.

If I was a Chancellor then I'd make sure that this country is investing into things that will address problems that will raise in 20-30 years, one of them is cutting down dependency on fossil fuels or any imported energy for this matter. Another will certainly be cutting down influence of the City - it is good to have financial markets, but you guys are seriously overvalueing what you do - frankly I think the world would have been better off without most of you with a few simple exchanges and a few simple rules, one of which would have been that anyone trying to circumvent those rules gets the chair.

[Dow Jones]

Clueless

No one is talking right now to what kind of people NR was lending - they were certainly not top prime customers, though probably not as bad as loan sharks were lending to. Either way quality of customers who were lent money is suspect (by me at least) and in principle assets that they have might go down in price next year big time.
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Above is an excerpt from a clueless Russian wannabe banker.
Average LTV for NR is at least 10% LESS than for other banks. Mine is 50%. Hence they were able to offer so low interest rates (coupled with the cheaper IR that they were able to secure) - again mine is 5.5 % (same as current BoE one).So in theory, property prices must crash and burn before any loss to NR.
His fantasies are so outrageous, it's not worth bothering with him anymore. He lives in cloud cuckoo-land.

[AtW]

This message is hidden because Dow Jones is on your ignore list.

[shaunbhoy]

It will have, albeit indirect - when market falls down and people start cutting on unnecessary expenditure one of the first things they will cut will be their mobile phones bill, this means less investment in infrastructure and Habib on work permit will be doing your job pal.

Not my job he won't as I don't work in the mobile phones sector any longer. Habib would never get the SC clearance required to do my job anyway............unless of course NL are still in power.
Anyway, try telling people today that having a mobile phone is "unnecessary".

People might not handle repayments - there will be more and more of those as they come off cheap rates and find that they can't refinance on the cheap, so suddenly millions will have to pay a lot more than they used to.
Furthermore - those that will get negative equity (easy as Northern Rock itself was giving money to 100% or more value of the house) won't be able to sell house to get new job when they will be out of current one == cut down mobility.

And that will affect me, with plenty of equity, a stable job on a long Government Project, and an easily manageable mortgage just how exactly?
Furthermore, whilst the doomsday scenario you are quite gloomily painting might affect people that have lost their jobs ( not that high a number really) it will not in itself trigger a crash because there is still a huge deficit in the amount of housing available, and people have to live somewhere whether they rent or buy. Not learned much in the time you've been here have you?
I guess that is why you are still stuck in bedsitland.

[sasguru]

No one is talking right now to what kind of people NR was lending - they were certainly not top prime customers, though probably not as bad as loan sharks were lending to. Either way quality of customers who were lent money is suspect (by me at least) and in principle assets that they have might go down in price next year big time.
----------------------------------------------------------
Above is an excerpt from a clueless Russian wannabe banker.
Average LTV for NR is at least 10% more than for other banks. Mine is 50%. Hence they were able to offer so low interest rates (coupled with the cheaper IR that they were able to secure) - again mine is 5.5 % (same as current BoE one).So in theory, property prices must crash and burn before any loss to NR.
His fantasies are so outrageous, it's not worth bothering with him anymore. He lives in cloud cuckoo-land.

Just for you atw. It may be educational

[sasguru]

Question for atw:

What rate did unemployment go up to in the last recession, when property fell by 40%?

[AtW]

And that will affect me, with plenty of equity, a stable job on a long Government Project, and an easily manageable mortgage just how exactly?

So you think the Govt that is fighting not to let POLICE FORCE £200 payraise few month earlier and now blowing billions on NR won't be cutting budgets in everything? You sure as hell are going to be under threat as you a contractor. Though I reckon you went permie ages ago, but it won't save you from axe.

Maybe your morgage is manageable, but let's see how you would like a few years on the bench serving it, wife and 5 kids without a job.

Talking of mobile phones, and I actually worked for a mobile phone retailer so I know how screwed up economic model of mobiles in this country is, then a LOT will change in this market as soon as serious recession will bite - telecoms will be cutting expenditure very quick, middlemen too but Skype and other bits will force tariffs down big time, meaning more job cuts and less capital investment. Better start learning Chinese right now - sasguru will need an interpreter to talk to his line manager, he himself will be too busy kissing his arse so you will have to do all the talking

[shaunbhoy]

Question for atw:

What rate did unemployment go up to in the last recession, when property fell by 40%?

No point asking him that sas, he was still basking in the glow of chernobyl blowing up, and we are all seeing the long term effects now.
When it comes to economics he has all the vision of a bat with cataracts!

[AtW]

Question for atw:

What rate did unemployment go up to in the last recession, when property fell by 40%?

Ask Beaker or Brillo or spill the beans yourself since you clearly know the answer.

One recession is not necesserily the same as others - unemployment in this country is not high because of NL policy to keep people on books paying them money rather than have them registered as proper unemployed that they really are.