Credit Crunch -reports the worst is over

oswestry123

hi everyone, I've seen some reports tonight on bloomberg and the net that some economists and banks are reporting the worst of the credit crunch is now over. What are peoples views on this?? I must admit the markets internationally are all on the up some to the tune of 8 percent with the ftse over 6000 today!!

Guy_Montag

The worst is over until the next chunk of faeces hits the fan.

jonesMUFCforever

It will only take rumours of a bank (anywhere in the world!) to be in trouble to open up old wounds once again.
This is going to be with us for the next 2 - 3 years minimum.

neas

Well thats that then, the news says credit crunch is over... house prices must be going back up now... Time for me to buy mr first house and mortgage myself to the hilt..

Oh wait a minute... almost had me

DaveyDave_3

Errr. I think it's only just begun. The fact is that a lot of credit opportunities have been removed from the market. The only reason house prices have rising so dramatically over the last few years is due to the amount of cheap credit. Now that this is being withdrawn, house prices are going to tank. I just don't see where the money is going to come from to keep it afloat. The BofE may lower IRs but this won't be passed on to the banks. In fact the banks are actively encouraging people not to take out their loans - which is pretty damn extraordinary - A bit like a baker's shop where they don't want to sell cakes.

Dan:_4

DaveyDave wrote: »

Errr. I think it's only just begun. The fact is that a lot of credit opportunities have been removed from the market. The only reason house prices have rising so dramatically over the last few years is due to the amount of cheap credit. Now that this is being withdrawn, house prices are going to tank. I just don't see where the money is going to come from to keep it afloat. The BofE may lower IRs but this won't be passed on to the banks. In fact the banks are actively encouraging people not to take out their loans - which is pretty damn extraordinary - A bit like a baker's shop where they don't want to sell cakes.

I reckon house prices will flatten out over the next few years rather then tank. I agree that all the cheap money caused the house boom, and we wont be seeing that again, but people can still afford houses - they will raise depoists from their savings, parents, or even personal loans! There is still plently of money out there, but its not cheap anymore - and that wont stop some people!

nelly_2

Guy_Montag wrote: »

The worst is over until the next chunk of faeces hits the fan.

In the original 'fan !!!!!!' incident.... do you wonder what animals poo it was that has now become so famous???

Or is it only me who thinks about things like that?

If pushed, I'd have to guess at a wasp turd.....but thats purely speculation mind

fc123

oswestry123 wrote: »

hi everyone, I've seen some reports tonight on bloomberg and the net that some economists and banks are reporting the worst of the credit crunch is now over. What are peoples views on this?? I must admit the markets internationally are all on the up some to the tune of 8 percent with the ftse over 6000 today!!

:T :j :j :T

Pheeww. Doesn't solve the little problem of the 'Money for Nothing' businesses that have cleaned up over the yrs.

Funny article in ES tonight http://www.thisislondon.co.uk/standard-business/article-23475309-details/Don%27t+laugh%2C+but+the+fat+cats+are+going+hungry/article.do

What I can't get over is how I totally missed out on all this...deerrrr.

mpsavuk

oswestry123 wrote: »

hi everyone, I've seen some reports tonight on bloomberg and the net that some economists and banks are reporting the worst of the credit crunch is now over. What are peoples views on this?? I must admit the markets internationally are all on the up some to the tune of 8 percent with the ftse over 6000 today!!

We are in whats called a bear market at the moment oswestry. That means it will go up and down like a !!!!!s draws!

Debt_Free_Chick

For Joe Public, I think these things lag behind the commercial market.

The credit crunch (boy, am I bored with that cliche!) hit the banks many, many months ago ... but has only now filtered into the domestic mortgage market. Similarly, if the commercial market starts to recover now, it will be many months before we see any positive effect on domestic mortgages.

ManAtHome

Hmmm, well we had to wait several years before "the green shoots of recovery" from the last one started to look like a lawn. Either Bloomberg and others were seriously over-estimating (around 6 months ago) what the mortgage write-downs would be or we're only around 1/2 way there yet. Then there may be some time while the banks rebuild their profits and exec bonuses before the next round of "we'll take the profits, you plebs pick up the losses" financial wizardry...