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

Generali

Really2 wrote: »

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

Lenders seem to be feeling the problems pretty keenly. So will the next generation of taxpayers.

Really2

Generali wrote: »

Lenders seem to be feeling the problems pretty keenly. So will the next generation of taxpayers.

Indeed, high house prices are not good but it would have been nice for the bubble to deflate rarther than blowing evrything else up with it.

Generali

Really2 wrote: »

Indeed, high house prices are not good but it would have been nice for the bubble to deflate rarther than blowing evrything else up with it.

Unfortunately it was inevitable. See my posts passim but basically the transmission mechanism is deleveraging and the resultant risk aversion by consumers and banks.

It happened in a small way in the early 90s in the UK. Now we're seeing it on a global scale and the pain will just keep on coming.

The banks look like they're just starting to get over the first wave. Now the next two bigger waves are coming - massive falls in international trade and big falls in industrial output both due to a lack of credit.

The wave after that will be countries not being able to sell debt so having to live within their means. Check the DFW board for some of the desperate ways people try to do that (re-using old porridge anyone?).

handful

dervish wrote: »

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

quote]

And those that bought earlier but then took out further advances for cars, holidays, home improvements etc on the assumption they could sell and repay them if required. :eek:

I'm not one of them thankfully. :cool:

sb44

Ok, so for the working man/lady in the street who knows diddly squat about economics etc, what does it mean if Britain goes bankrupt?

Pssst

1984ReturnsForReal wrote: »

GREAT BRITAIN

IS

ALREADY BANKRUPT!!!

OMG not red top man again...I have a migraine coming on..

mbga9pgf

sb44 wrote: »

Ok, so for the working man/lady in the street who knows diddly squat about economics etc, what does it mean if Britain goes bankrupt?

hae a look at this...

http://www.chicagotribune.com/news/nationworld/chi-iceland-meltdown_goeringmar08,0,7386563.story

Austin_Allegro

sb44 wrote: »

Ok, so for the working man/lady in the street who knows diddly squat about economics etc, what does it mean if Britain goes bankrupt?

'Heat' magazine starts doing features on celebrities who rummage through rubbish bins for food?

jay3_2

sb44 wrote: »

Ok, so for the working man/lady in the street who knows diddly squat about economics etc, what does it mean if Britain goes bankrupt?

Ken Bates buys us for $1, and we start up all over again, only in a lower division.

Really2

jay3 wrote: »

Ken Bates buys us for $1, and we start up all over again, only in a lower division.

Is it true Leeds have cleared their debts now (well the ones they actualy paid)