I concede that my view is merely that. I invite those holding contrary views to state them. This will help Wannabes come to their own views and thus make their own, informed, decisions.
Personally I believe the house price crash alone is enough to see the failure of at least one UK airline. The credit crunch and the recession are just added extras.
http://www.moneyweek.com/file/44840/...the-1990s.html
Why this housing crash could be worse than the 1990s
The credit crunch is set to get even worse.
In a week where we’ve seen some lenders pull out of the mortgage market altogether – if temporarily – and others raise interest rates substantially in the hope of putting off customers, many borrowers may be wondering how much worse it could get.
But according to the Bank of England’s latest quarterly Credit Conditions survey, over the next three months lenders expect to cut lending further, raise charges, and be more demanding on terms, such as hiking deposit levels, for example.
So it’s little wonder that the IMF reckons Britain is one of the countries most vulnerable to a property crash…
Along with France and the Netherlands, the IMF believes Britain has one of the world’s most precarious property markets. It calculates that at least 30% of the value of homes cannot be explained by fundamentals such as demand or rising incomes, reports The Times.
Of course, this has been obvious to anyone with any sense and has been for a long time. High house prices aren’t about supply and demand, or rising incomes – they’ve been all about availability of credit for years now. And that’s vanishing rapidly, even for wealthy buyers. C&G now demands a £200,000 deposit if you want to borrow £1m, double what it was at the start of this week. So much for the unassailable London market.
My view is closely mirrored in the article above.
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