most mainstream forcasters failed to see the crash

Thrugelmir

geoffky wrote: »

most mainstream forecasters failed to see the crash .so why should we take any of their ramblings as gospel.. its just like the ones on here who were saying there will not be a house price crash two months before the market went tumbling and are now saying we are near bottom..........i f they could not get such a thing right that many on here and over at hpc.co.uk got spot on what does it say about the drivel that are coming out with now..

If read more than the BBC news headlines then you would appreciate that a considerable number of people held alternative views. A couple of major points.

The Treasury was advised in 2004 that NR's business model was unsustainable.

Lehmans for all intents and purposes was misselling its securitised loan packages. A lack of regulation and understanding allowed this to happen. Ask yourself why Lehmans unlike any other major bank or financial institution was allowed to go bust?

RBS's problems lie from its acquistion of ABM Amro and its desire to become an international player.

Barclays, HSBC, Standard Chartered to name a few have not required Government support to continue trading. Lloyds would have been ok without merging with HBOS.

No one in the City was saying houses are a good investment in the boom years. It was the media. TV programmes in particular.

People are greedy. Money for nothing. Thats what's driven HPI. Now people have to accept responsibility for their own decisions. Unfortunately we all are going to pay for the cost of the credit crunch.

michaels

tomterm8 wrote: »

I think a lot of people thought there was a bubble... certainly, I thought that in 2003 and it was pretty obvious by 2005... but, timing the market as you describe it is virtually impossible. Especially the housing market.

My point is that whilst some people almost certainly did 'time the market' it would be theoretically impossible for everyone to.