In full swing

dopester

Mortgage squeeze 'will continue'

The availability of mortgages is expected to fall further in the next three months, lenders have told the Bank of England.

http://news.bbc.co.uk/1/hi/business/7487078.stm

And so it continues... it will be a cash only market at this rate in a year or so - or mortgages only for the best credit risks with hefty deposits.

Just as loose and easy credit led to house prices rising to crazy heights, the restriction of credit will cause them to fall. And a lot more than 15%.

Gorgeous_George

The odd thing is that falling prices aren't good for the banks. It would be better for their balance sheets if they avoided mass repossessions and converting secured debt to bad debt. Sadly, the banks aren't clever enough to do anything innovative.

GG

dopester

Gorgeous_George wrote: »

The odd thing is that falling prices aren't good for the banks. It would be better for their balance sheets if they avoided mass repossessions and converting secured debt to bad debt. Sadly, the banks aren't clever enough to do anything innovative.

GG

None of the banks are going to take a prolonged independent stand. Not one of them is strong enough to prop up the housing market alone by continuing to lend and lend in a falling market, where prices are clearly over-valued by any measure. They've been cut of from access to money markets which have practically closed down for such lending, and so have to do it from their own book.

When property prices fall, the true market value of the loans issued fall too. Banks don't like to lend in falling markets. Just like their predecessors after 1929, banks will not wish to magically turn one dollar/pound of cash in to a loan worth 60c or 60p, and maybe a lot worse.

moanymoany

I'm opening myself up with this question - but what the hell, I want an answer.

Bull/bullish
bear/bearish

what exactly is the difference?

m00m00

pessimist vs optimist

Paul_N_4

m00m00 wrote: »

pessimist vs optimist

I wouldn't put it that way. Do you consider yourself a pessimist because you want or expect house prices to fall? Absolutely not.

Its more that bulls expect something to go up, bears expect something to go down. Obviously terminology more commonly used on the stock markets. Both bulls and bears make money, so its not really a question of your perspective on life.

m00m00

mr.broderick wrote: »

Yeah it's been a long time since i did a level maths then statistics and calculus at university if you ever want to talk fermat and descartes i'll be here to chat moomoo, don't get my confusion...confused...with yours my friend.

then why do you have such trouble grasping the concept that the variables within a dataset from which an average is derived, are capable of changing at different rates and independent of other values within the dataset, to ultimately give a new average.

mr.broderick

m00m00 wrote: »

then why do you have such trouble grasping the concept that the variables within a dataset from which an average is derived, are capable of changing at different rates and independent of other values within the dataset, to ultimately give a new average.

Can I just say you are taking all this a step too far.
Sorry if i've been ignorant but aren't you the propertybee fanatic?
Have a day off stop getting so deep with everything and chill out.
It's all well and good using stats, i love them and we had a thread a couple of years ago with alan m etc which was the best ever thread on here, stats don't mean anything to me when i talk about property because there are too many human emotions involved, there are still people buying houses at the moment against all this credit crunch, crash mania etc want me to tell you why moomoo? They wanna buy a home. It is a difficult concept isn't it?

mr.broderick

moanymoany wrote: »

I'm opening myself up with this question - but what the hell, I want an answer.

Bull/bullish
bear/bearish

what exactly is the difference?

They are markets not posters.

Bull - confident market..market indices rising by 20% I think.

Bear - sleeping bull....

mr.broderick

m00m00 wrote: »

pessimist vs optimist

Totally wrong..See my post above.