Respected Analyst : House prices 'could drop another 55%' and leave Britain bankrupt

Generali

whathavewedone wrote: »

Isn't the Telegraph written by the same people who write the Mail?

No. The Telegraph is owned by the Barclay Brothers (domiciled in Guernsey I think???). The Daily Mail is part of DMGT, a publicly quoted company that I think owns the Daily Mail, a few radio stations, some specialist publications (one of which, The Antiques Trade Gazette, a mate of mine worked for) and a bunch of local newspapers.

Graham_Devon

Really2 wrote: »

There does seem to be a lack of knowledge of what administration is on this board.

Never-mind.

Yup.

Though there appears to be a worrying trend appearing here that some seem to take the assumption that a country being bankrupt is the same as a high street chain, and you can just call the administrators in to find a new buyer, or shut up shop.

Really2

Graham_Devon wrote: »

Yup.

Though there appears to be a worrying trend appearing here that some seem to take the assumption that a country being bankrupt is the same as a high street chain, and you can just call the administrators in to find a new buyer, or shut up shop.

Some would but I take the presumption we are not actually bankrupt.

Some factors are similar EG Iceland taking over it's banking system until it could work out what was happening. Not unlike state administration at all.;)

Graham_Devon

Really2 wrote: »

Some would but I take the presumption we are not actually bankrupt.

Some factors are similar EG Iceland taking over it's banking system until it could work out what was happening. Not unlike state administration at all.;)

Yer, I would also take the assumption we are not actually bankrupt yet too, I think most people would.

But were certainly doing our best to put in place everything that needs to happen to create bankrupcy. The one card trick we do have is QE. But that has to stop somewhere, and that trick could go very wrong!

Hopefully the IMF may be able ot do some QE of it's own, and then it can bail us out.

1984ReturnsForReal_2

Really2 wrote: »

Some would but I take the presumption we are not actually bankrupt.
.;)

Just TRADING INSOLVENT...

Dan:_4

ad44downey wrote: »

more proof, not that it were really needed, that the first Great house price crash of the 21st century is still in its infancy.

It's not proof, just another prediction.

kabayiri

Just a thought....

Is it stories like this which might explain the withdrawal of 1 trillion dollars of foreign investment from UK shores in recent months?

I guess what I'm asking is how important is the perception of UK finances by overseas investors, rather than the reality of the situation?

Generali

kabayiri wrote: »

Just a thought....

Is it stories like this which might explain the withdrawal of 1 trillion dollars of foreign investment from UK shores in recent months?

I guess what I'm asking is how important is the perception of UK finances by overseas investors, rather than the reality of the situation?

The perception of things will be important. I doubt too many overseas investors in the UK look to the Daily Mail as a primary source of information.

A lot of the withdrawal of funds will be money being repatriated to cover losses elsewhere. For example, London is a favoured destination of Russian money as the UK Government has maintained a certain moral flexibility regarding the source of funds which the US has not. Russian commodities producers (aka The Oligarchs) have had staggering losses recently. They'll need to realise investments to make good collateral (margin) on other investments.

It is still a big problem. It's a symptom of the wider problem and the cause of local problems rather than the other way around IMO.

If this keeps going on then it will become a very big problem. One which can't be solved by the UK Government printing money as they can't print US Dollars.

dervish

stevetodd wrote: »

A huge comet could smash into the earth and destroy all life. In the days running up to that happening I would not come on the forum, I think the glee from the doom mongers would be too much to bear, they would be loving it.

your analysis / anaolgy is flawed.

You asume that house price falls ar bad for the majority of people. This is simply not true.

Only those who bought between 2003-2007 have anything to fear.

Those others who have bought are fine as are all the untold scores who are yet to buy.

Really2

dervish wrote: »

your analysis / anaolgy is flawed.

You asume that house price falls ar bad for the majority of people. This is simply not true.

Only those who bought between 2003-2007 have anything to fear.

Those others who have bought are fine as are all the untold scores who are yet to buy.

On an even basis yours is flawed. Do you know the ones waiting to buy total more than people who purchased after 2003?

What about the effect on pensions and IR, have they not effected people becuase of faliing house prices and conficence in the economy?

I think the fall in house prices is not just being felt by the owners of houses.