Recession - How bad can things actually get?

Conflict

amcluesent wrote: »

>the next thing we could be watching is countries going down the tubes?<

Check out the dozen or so countries already 'rescued' by the IMF.

Its not could its probably will. Greece is currently winning the race - S&P downgraded it to A- today.

Also given the IMF is quickly running out of money odds are it wont be able to save one never mind the 5 Euro countries (Greece, Ireland, Spain, Italy, Portugal) in serious trouble.

Really if that happens its anyone's guess how bad this will get.

tomstickland

Think of the worst outcome. Then make it a bit worse. Then make it a bit better, because it won't be that bad. Bit more, bit more, keep going. Stop.
Right, now make it a bit worse, you're being too optimistic. Bit more. Faster. Come on. Almost there. Stop. Right, where are you relative to where you started? Same place? Well, it might be twice as bad as that, or it might be half as bad.

Kenny4315

If house prices tumble a total of around 35% as I feel is required to correct the market then, there's a whole heap of Sh&t on the cards, potentially civil unrest, as many lose virtually everything.

Really2

Kenny4315 wrote: »

If house prices tumble a total of around 35% as I feel is required to correct the market then, there's a whole heap of Sh&t on the cards, potentially civil unrest, as many lose virtually everything.

Would that not require most to buy at the top of the market? So mainly only first time buyers since April 02 who have been reposessed then!

I think you are over egging the situation. But just in case I will make a tinfoil helmet.;)

Optimist

Really2 wrote: »

Would that not require most to buy at the top of the market? So mainly only first time buyers since April 02 who have been reposessed then!

I think you are over egging the situation. But just in case I will make a tinfoil helmet.;)

Is a tin foil helmet a required fashion accessory in times of civil unrest ?

TJ27

It's just been on the News that Pedigree pet foods have gone bust! They've had to call in the retrievers.

I also heard that Ronaldo is sueing Manchester Council for causing his crash. Apparently the wall wasn't ten yards back.

Kenny4315

Really2 wrote: »

Would that not require most to buy at the top of the market? So mainly only first time buyers since April 02 who have been reposessed then!

I think you are over egging the situation. But just in case I will make a tinfoil helmet.;)

It matters not when you buy but how much debt vs equity you now have, and how affordable the mortgage is, and whether keeping the house depends on finding a better deal.

Remortgages of properties to release equity built in the house over the last X years will be the downfall of many pre-2002 and before home-owners. You had better make a tin-foil helmet production line, you'll make a packet. :money:

Did you see that repossesion program, couple bought house started with £45k mortgage, proceedings taking place mortgage £140k.

Really2

Kenny4315 wrote: »

It matters not when you buy but how much debt vs equity you now have, and how affordable the mortgage is, and whether keeping the house depends on finding a better deal.

Remortgages of properties to release equity built in the house over the last X years will be the downfall of many pre-2002 and before home-owners. You

Did you see that repossesion program, couple bought house started with £45k mortgage, proceedings taking place mortgage £140k.

One person must mean the whole population then.:rolleyes:

You best buy quick then or you savings will disapear along with ever bank as 11M homes are repossesd because they mewed it all away.

Cannon_Fodder

Latest HEW (housing instead of mortgage) figures upto Q3 2008, produced 29/12/08;
http://www.bankofengland.co.uk/statistics/hew/2008/sep/index.htm










The scale of previous equity withdrawal is affecting homeowners' ability to re-mortgage, but its reversal is also taking billions out of the economy and housing market to further add to recessionary effects.

Kenny4315

Really2 wrote: »

One person must mean the whole population then.:rolleyes:

You best buy quick then or you savings will disapear along with ever bank as 11M homes are repossesd because they mewed it all away.

It isn't one person that has remortgaged to release equity, its hundreds of thousands. :rolleyes: Every 2 years for the duration of the housing boom.