Housing Equity Withdrawal at a whopping -5.7 billion

[SantaClaus]

Change in the total value of new home-secured loans that are not used for home purchases or improvements:

Forecast Actual
-3.3 billion -5.7 billion

This means that UK homeowners are taking more money out of their homes than ever before!

Looks like desperation to me.

[Gonzo]

Change in the total value of new home-secured loans that are not used for home purchases or improvements:

Forecast Actual
-3.3 billion -5.7 billion

This means that UK homeowners are taking more money out of their homes than ever before!

Looks like desperation to me.

I'm no economist (I actually resigned from the economics department as an undergrad) but to me, if the figures are negative, surely that means that people are overall paying back this debt and reducing it?

[Solidec]

I'm no economist (I actually resigned from the economics department as an undergrad) but to me, if the figures are negative, surely that means that people are overall paying back this debt and reducing it?

Correct

First year in a long long time when there has been a pay down on overall national mortgage debt. Not for lack of trying however, mainly because of the freeze in lending. Its all but enforced as people find it nigh on impossible to remortgage and their equity has been eroded to the tune of at least 10% this year alone.

Not sure what the first poster is on about.

[Gonzo]

Not sure what the first poster is on about.

Maybe it is the "double-whammy" on retailers he/she/it is concerned about - we are expecting the people who lose their jobs to stop spending money, but this means that the people that don't lose their jobs have also stopped spending money.

[SantaClaus]

Ok, sorry I read it wrong! I wish I could change the title from whopping to depressing.

But, the net result is bad for the pound and the economy
-----------------------------------------------------------------------
Source Bank of England (latest release)

Measures Change in the total value of new home-secured loans that are not used for home purchases or improvements;

Usual Effect Actual > Forecast = Good for currency;

Frequency Released quarterly, about 90 days after the quarter ends;

Next Release Apr 3, 2009

Also Called Mortgage Equity Withdrawal;

[Purple Dalek]

Maybe it is the "double-whammy" on retailers he/she/it is concerned about - we are expecting the people who lose their jobs to stop spending money, but this means that the people that don't lose their jobs have also stopped spending money.

I think it'll be a triple (or more) whammy: retailers go bust, shop staff no longer have money to spend, then the triple: the companies that rent the shops out no longer able to maintain their mortgage payments, and fold, next: the banks that lent the money to these companies also fold.

[PAH]

I think it'll be a triple (or more) whammy: retailers go bust, shop staff no longer have money to spend, then the triple: the companies that rent the shops out no longer able to maintain their mortgage payments, and fold, next: the banks that lent the money to these companies also fold.

Line enough of them up and we could be looking at a new domino toppling world record.

[whistles monty python's Always Look on the Brightside of Life. Be grateful I'm not trying to sing it!]

[Purple Dalek]

Line enough of them up and we could be looking at a new domino toppling world record.

[whistles monty python's Always Look on the Brightside of Life. Be grateful I'm not trying to sing it!]

I'm looking at there being three major tranches of bailouts before the government finally runs out of money. This next set of bank failures will be the second.

The sooner we get to the third, the better, because the effort of climbing from the hole created will be harder the bigger the hole the government gets us into.

[Mich the Tester]

the effort of climbing from the hole created will be harder the bigger the hole the government gets us into.

...and being a Dalek you don't like climbing do you?

[SallyAnne]

I think it'll be a triple (or more) whammy: retailers go bust, shop staff no longer have money to spend, then the triple: the companies that rent the shops out no longer able to maintain their mortgage payments, and fold, next: the banks that lent the money to these companies also fold.

Oooooh cheerful times!!!

Merry Xmas to all!!



Can you lot not talk about anything remotely upbeat?!