tag:blogger.com,1999:blog-2948538160252327076.post1084357259297674412..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: It is different this timeAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2948538160252327076.post-7475935344378970522008-01-30T13:02:00.000+00:002008-01-30T13:02:00.000+00:00Unfortunately this government seems hell bent on r...Unfortunately this government seems hell bent on rewarding irresponsible borrowers and reckless lenders/investors. I wouldn't be surprised if we see a raft of ridiculous measures designed to ease their pain in the coming recession, with scant regard for the impact those measures have on the genuinely prudent.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-45656650340720058042008-01-30T10:01:00.000+00:002008-01-30T10:01:00.000+00:00As well as banks, the government must share some r...As well as banks, the government must share some responsibility for the mess we face.<BR/>Gordon Brown has always stressed how strong the UK's economy is - quoted "fixed" inflation figures to back that claim up - couple that with the acting prowess (pure fuc*ing lies !) of Mr Blair and the UK population thought everything was just wonderful.<BR/>I am sure that is why New Labour got in again in 2005 - people put all the sleaze and the Iraq war to the back of their minds and thought how wonderful life was under New Labour as their house had doubled in value, so didn't want the fantasy to come to an end.<BR/>Gordon Brown is still quoting this crap about the strength of the UK economy and blaming the current economic uncertainty on the US sub-prime market, when in fact lending in the UK per person and house price inflation is way above that in the US...I hope the day of reckoning is not too far away so "Mr Bean" can be held to account.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-90973810267844575952008-01-29T18:55:00.000+00:002008-01-29T18:55:00.000+00:00i have no idea what proportion of mortgages were 1...i have no idea what proportion of mortgages were 100% financed, but i suspect a very large number were 95%, since that seemed to be what all the lenders were pushing the most. i know a few people who bought with just 5% down, although i don't know any who bought with 0% (although i've no doubt it went on)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-35824526340821665422008-01-29T18:26:00.000+00:002008-01-29T18:26:00.000+00:00Here in the US, it is actually fairly painless to ...Here in the US, it is actually fairly painless to walk away from a house/mortgage. Generally, the only cost is you are blacklisted from acquiring another mortgage for seven years (or something like that.)<BR/><BR/>Given that many mortgages here were for 100% of home value, and prices in states like California and Florida are in a free-fall, there are literally millions of people here who owe more than there house is worth. Calculated Risk has posted <A HREF="http://calculatedrisk.blogspot.com/2008/01/new-trend-intentional-foreclosure.html" REL="nofollow">some excellent projections</A> on this.<BR/><BR/>Are there statistics of what percentage loans in the UK have been 100% of value?<BR/><BR/>In some ways, I wonder if things will unfold much faster in the UK than they did here, partly because buyers in the UK will be more likely to expect large drops in prices after seeing what happened here. <BR/><BR/>But also because the UK lacks some of the government institutions that support home lending here, like Fannie Mae, the Federal Home Loan banks, etc.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-89227986156354581442008-01-29T18:13:00.000+00:002008-01-29T18:13:00.000+00:00"...the debts, they stay until they are repaid in ..."...the debts, they stay until they are repaid in full."<BR/><BR/>Dear lady, how wrong you are! Thousands will declare bankruptcy over here and never pay back a cent! In the USA homeowners who can no longer afford to pay their mortgages are merely sending in the keys and leaving the house--it's called "jingle mail," and it's catching on faster than chlamydia. That's the whole thing about our new economy--you can run up as much debt as you like and never worry about repaying it!Anonymousnoreply@blogger.com