What makes this housing down turn different

[Turion]

Govt has got no money. Punters will have to pay 8-9% interest rate or lose their house. This will certainly mean they will have to take a cut to living standards - BoE chairman already mentioned that will happen, people are just not paying attention.

Govt can print as much money as it likes. In a crisis it can let inflation do some of the dirty work. It can guarentee assets of banks (the repossessed houses), lease them or whatever to keep the banks afloat and try to prevent a martket rout. If a mortage bank is going down the tubes it will nationalize it (example = Northern Rock), those repo houses then belong to govt. It can then re-house the deposed home owners as council tenants in their former houses. This mortgage to rent business is already being planned.

[tay]

I love watching armchair economists whip themselves into a frenzy of doom. Hours of fun as they just bounce more and more stupid doomsday theories between themeselves, based on nothing but a desire to see something exciting happen in thier dreary little lives. Get a hobby, will help wittle away the time and not make you feel so unhappy that you feel the need to fantasise about economic distaster to make you feel better.

The economy is going into a recession, times will be a tougher... but at least try and keep a grip on reality.

[bobhope]

I love watching armchair economists whip themselves into a frenzy of doom. Hours of fun as they just bounce more and more stupid doomsday theories between themeselves, based on nothing but a desire to see something exciting happen in thier dreary little lives. Get a hobby, will help wittle away the time and not make you feel so unhappy that you feel the need to fantasise about economic distaster to make you feel better.

The economy is going into a recession, times will be a tougher... but at least try and keep a grip on reality.

I think economics is one of the few areas where the armchair participants probably would do a better job than the pros. Everytime I see Bernanke, Merv and co I feel the need to hit something.

[sasguru]

I love watching armchair economists whip themselves into a frenzy of doom. Hours of fun as they just bounce more and more stupid doomsday theories between themeselves, based on nothing but a desire to see something exciting happen in thier dreary little lives. Get a hobby, will help wittle away the time and not make you feel so unhappy that you feel the need to fantasise about economic distaster to make you feel better.

The economy is going into a recession, times will be a tougher... but at least try and keep a grip on reality.

Hear! Hear! The losers of this world, like atw, will be even poorer in a recession than they are now.

[DimPrawn]

Hear! Hear! The losers of this world, like atw, will be even poorer in a recession than they are now.

But think of the squirrels! Will someone please think of the squirrels!?!

[Turion]

I love watching armchair economists whip themselves into a frenzy of doom. Hours of fun as they just bounce more and more stupid doomsday theories between themeselves, based on nothing but a desire to see something exciting happen in thier dreary little lives. Get a hobby, will help wittle away the time and not make you feel so unhappy that you feel the need to fantasise about economic distaster to make you feel better.

The economy is going into a recession, times will be a tougher... but at least try and keep a grip on reality.

OK, you're right. I don't have much work to do at the moment, but the theories are not so bizaar. Japan had an 80% fall in property prices, Hong Kong 60%. As the market goes into reverse, many of the silly gimmicks that were introduced to enable FTB's to get on the market will disapear or in some cases go into reverse. For example this shared equity nonsence where a punter buys 25% and rents the rest, hoping to buy further chunks later. In a reversing market, people will be selling parts of their home and renting back. It is quite plausible for someone to give up 50% of their 100% mortage and rent back that share from the govt at a cheap rate. It could at least prevent the misery of reposession. Govt will have to do something. This is going to affect millions. Personally I believe New Lie are finished. The 'Con'servatives will be fixing this one.

[oracleslave]

OK, you're right. I don't have much work to do at the moment, but the theories are not so bizaar. Japan had an 80% fall in property prices, Hong Kong 60%. As the market goes into reverse, many of the silly gimmicks that were introduced to enable FTB's to get on the market will disapear or in some cases go into reverse. For example this shared equity nonsence where a punter buys 25% and rents the rest, hoping to buy further chunks later. In a reversing market, people will be selling parts of their home and renting back. It is quite plausible for someone to give up 50% of their 100% mortage and rent back that share from the govt at a cheap rate. It could at least prevent the misery of reposession. Govt will have to do something. This is going to affect millions. Personally I believe New Lie are finished. The 'Con'servatives will be fixing this one.

bizarre

nonsense

HTH.

[threaded]

Personally I believe New Lie are finished.

Don't think so, it's got to get way worse than even my expectations for that to happen, and I've managed to get a long way in never underestimating the stupidity of people in large groups.

[Sysman]

One thing that makes it different this time around is that everything has been concentrated on the South East and financial services to the detriment of the rest of the country for so long.

Where is the manufacturing base to fall back on now that the financial industry is in such deep doo-doo?

Too many eggs in the same basket this time around?

[Turion]

One thing that makes it different this time around is that everything has been concentrated on the South East and financial services to the detriment of the rest of the country for so long.

Where is the manufacturing base to fall back on now that the financial industry is in such deep doo-doo?

Too many eggs in the same basket this time around?

In india and China