Stock market dive / credit crunch....
29 July 2007, 07:54 PM
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Stock market dive / credit crunch....
BBC NEWS | Business | Fears of fresh stock market falls
Its long been predicted - we cant have everything based on borrowed money forever.
Looks like the crunch may be arriving - so its possible the days of sky-high stock markets due to constant buy-outs with borrowed cash, and sky-high assets such as housing (fuelled by silly x salary mortgages) may be coming to an end.
You may find it very difficult to borrow large sums of money in the not-so-distant future if things pan out like many now think they will.
On top of potentially much tighter lending we also have rising interest rates making borrowing even more difficult, and with ever-rising fuel, food and utility bill prices inflation could well pick up sparking even-higher IR's
Could all be interesting!!
Its long been predicted - we cant have everything based on borrowed money forever.
Looks like the crunch may be arriving - so its possible the days of sky-high stock markets due to constant buy-outs with borrowed cash, and sky-high assets such as housing (fuelled by silly x salary mortgages) may be coming to an end.
You may find it very difficult to borrow large sums of money in the not-so-distant future if things pan out like many now think they will.
On top of potentially much tighter lending we also have rising interest rates making borrowing even more difficult, and with ever-rising fuel, food and utility bill prices inflation could well pick up sparking even-higher IR's
Could all be interesting!!
29 July 2007, 08:03 PM
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Theres little hope of sensibly priced housing though. One million passports have been handed out in the last ten years and thats small fry compared to the number of other financial 'refugees' here. There arent enough houses and there isnt enough buidling land, so demand outstrips supply. Factor in the buy-to-let greed so prevalent now and I cant see anything more than a small readjustment and a few distress sales from the over-stretched.....
29 July 2007, 08:11 PM
#4
Theres little hope of sensibly priced housing though. One million passports have been handed out in the last ten years and thats small fry compared to the number of other financial 'refugees' here. There arent enough houses and there isnt enough buidling land, so demand outstrips supply. Factor in the buy-to-let greed so prevalent now and I cant see anything more than a small readjustment and a few distress sales from the over-stretched.....
How about opening up council stock? millions of houses being lived in rent free and council tax free be wasters.A make them do unpaid voluntary work,profits going to building new homes or B kick the wasters out be them English or foreign.
Will either of these options happen ? no because either would cause the over inflated housing market to crash and labours economy built on sand to crash
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