Petem95

Its been predicted for some time now, but crashing house prices in the US and a cloudy longterm economic outlook seems to have finally set off the slide..

Fell sharply Friday, and is continuing its slide today

Ineffect the country is bankrupt, and I dont know what else they can really do to prop up the dollar.

Effects for UK? Well will make our exports more expensive, so EVEN LESS competitive exports for us = job loses..

plus our economy is similar to the US in that we import **** loads and export far far less.....

2000TLondon

Yes, it's a p1sser for me, I converted a house deposit from sterling to dollars last summer, if only I'd moved here this year instead!!!

I haven't seen any real evidence of a housing market collapse, although it would predominantly be in the metropolitan areas of NY, LA, San Diego etc rather than rural Texas where it's soooo cheap anyway..... But I believe it is most likely on the way, if it hasn't started........ The peaks and troughs of the world economy, ride it out again........

Jamo

iTrader: (23)

on the upside, its a great time to buy stuff from america

Jamo

iTrader: (23)

****!!!

100.00 GBP
United Kingdom Pounds = 195.060 USD
United States Dollars
1 GBP = 1.95060 USD 1 USD = 0.512663 GBP

pslewis

We shall surely follow ............

God I have wet dreams about collapsing house prices - I NEED to fill my property portfolio just a little more

Come on house price crash - I need you ........... can't wait!

Petem95

I think the housing market collapse is only just getting underway really - apparently prices have been falling for 3months, but last month house prices fell at the sharpest rate EVER so looks like it will be a full-blown colllapse before long!!
Existing home prices post biggest drop on record: NAR - Nov. 28, 2006

Fuzz

Even better for me going on holiday to somewhere that the local currency is US dollars then.

Not quite sure why though as it's no where near USA lol

Petem95

Problem is you also need a job to pay the mortgage on them, and while I agree that whats happening state-side will happen here before long, the jobs market will get hit hard as exports fall sharply!

Banks will suddenly change their lending criteria when house prices start heading south here too, so many people will find they cant afford any more 'house' as the money will be so much harder to borrow!

pslewis

I don't need mortgages .................

Deep Singh

Though its a fact that all economies are in some way connected the US and UK have had different peaks and troughs both in the stock and property markets. Hence the US could have a recession without the UK following suit and vice versa

Petem95

The UK has always followed the US into recession (although it takes some months for the effects to be felt here), bar once in 2000 when the US was only briefly in recession and we managed to avoid it.

If the dollar continues to slide at the rates its going then with US house prices also crashing, theres obsolutely no way we wont follow them into recession because the US are the worlds biggest consumer, hence almost certainly our most important export market.

GaryCat

What an absolute bummer. I get paid a quarterly bonus in dollars and this quarter was much less than I expected. Now I know why

DaveMiddleton

Off to Aspen , Colorado to ski over Xmas with my 2 sons. Looking like $2 for £1 by then¬!!!

2000TLondon

From what I can see, the US imports everything from China, if the US goes, it'll be like a house of cards in the current climate. But there is always lots of money to be made in recessions on the markets

mart360

nice to know we can rely on you pete to capitalise on others misfoutunes.


Mart

pslewis

My houses will be falling in value too ...... will you feel sorry for me??

Well?????

Deep Singh

Agree with PSL and 2000T there is lots of money to be made in a recession especially if you have a recession proof job and minimal debt. It will be an adventure...

Fuzz

As long as zero percent balance transfers don't dry up I should be alright

Freak

bring it on
Have a wedge ready to put towards buying my apartment in new york sitting in the bank waiting

2000TLondon

Wow, buying in New York is tough! I was up there in the summer, and my friend lives near Columbus Circle, the amount of rent he was paying for a tiny studio made my place in Central London seem very cheap! There were one bedroom apartments in his block going for $4,000,000!

Shark Man

Hmmm that should make the Cadillac CTS-V an even cheaper buy

Bargain bucket 4 door Monaro

Freak

Thats Manhattan for you! Rent is insane there as are prices to buy.
Brooklyn is nicer (IMHO), quieter+cheaper... can get a decent apartment for a $few hundred k

Deep Singh

How comes the US indices have all posted minor gains then?

AudiLover

why are you feeling sorry for the yanks?

Suresh

Agreed. My pension effectively doubled in size thanks to the tech stock crash at the end of the 90s

The Chief

Time to buy that US property folks. My old fella bought his home in Florida when it was last 2$ to the pound

Also we buy a lot of stuff for work from China - who use US Dollars, should be good.

The Chief

Why are you so Anti-American

2000TLondon

You're thinking of a crash, rather than a slide into recession, DS, which could, in theory take years to really materialise...... And of course may not actually happen!

2000TLondon

I think this was in relation to UK property after the UK economy theoretically followed the US. However, I don't see why anyone wouldn't empathise with another who was suffering a recession.

Funkii Munkii

The Dollar has been in the 1.8 - 1.9's or there or there abouts for about 2 years now so why the fuss now ??