pslewis

Disaster in the US

Petrol prices through the roof

House prices on a plateau

Feel good factor disappearing

Winter coming

Retailers struggling

Are we on the verge of a major slowdown/recession??

Pete

NotoriousREV

We're on the verge of being able to buy ****loads of stuff cheap from the US as the $ plummets

But yes, recession will no doubt follow soon.

dpb

Yes Pete,of course Pete...













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Big Den

+ Pete Lewis won't go away

ALi-B

iTrader: (1)

I can smell it.

Give it a year or two though....the scaffolding is weak, but it's not quite rusted through yet

moses

u know the sad part is guys, their was a law that u cant manipulate the weather to suit yourselves

and when george w bush came on the scene the neocons came up with an idea to manipulate the weather the skies, create acid rain in certain area's and also create tsunami;s using bombs

this is no bull it was all over the papers in the uk before the son of star wars idea

and look they were willing to use this method on other countries if they ever got to do it but it happened to them naturally, maybe this time they will repent and know how other innocents feel like and i hope it teaches them humility

saddest part is it happened to the innocents and poor and not the republican neocons in power

fast bloke

Yeah Pete - It'll happen rght after house prices drop by eleventy squillion percent or whatever your last forecast was

FASTER MIKE!!

yep hate to admit it pete but i think your right, working in my post office, we tax cars and most of the car dealerships have'nt had many new orders for cars for the new plates that came out, one of the sales men from the bmw garage, think he said there was about half as many cars sold compaired to last year!

Petem95

Do you reckon house prices wont drop significantly?! They wont crash overnight, but prices have been falling for 11 months or something now, and its a snowball effect generally - up till now people have known theyve been overpriced, but as it seemed the prices kept going up it didnt matter what you paid for the place if it was going up 10% each year

but it works there other way too, prices continue to fall and peoples mindset changes to 'they'll just keep on falling'. Boom - bust is just the way the cycle works.

I would say things are looking pretty dire for the economy as a whole too, but again that tends to follow a boom bust cycle too, so you gotta take the rough with the smooth

KiwiGTI

The problem with homeowners in general is that their psychological well being is governed a large degree by how well their house price is doing (Seriously), so to get any smug homeowner with a house to admit there is a bubble just about to be burst is pretty hard. Likewise it takes a while for stubborn sellers to realise that the market isn't there and for them to drop their prices.

As has been said, it's pure economics - you can't expect all this growth in house prices over the last decade to have no reaction. There is no such thing as a lossless risk free investment even in real estate.

Brother_Will

I sure hope so my jobs safe ive got no house im waiting for all these cheap ones ps lewis keeps promising lol

pslewis

Houses just aren't selling in the South .............. prices are dropped until a buyer can be tempted to bite.

The North will catch a cold soon enough!

Pete

KiwiGTI

The average sellling price is already about 10% what the average asking price was (Some report last week) - just think how all those people with interest only loans, 95% mortgages and the ones that have taken £35-40000 loans against their houses to buy BMW X5s must be feeling now.

r32

Yes in the UK we are on the verge of a small recession. The constant hike in taxes both visible and stealth by this Government means there is less disposable income, low house sales, less high street spending. The small changes to the interest rates is not enough to kick start the economy.

Leslie

It is likely to happen I think, signs already here of people reigning in on spending which is usually the start of it all. The over borrowing by the exchequer will also catch up so we can expect big tax rises as well. Brown has been very lucky but it is running out,

Les

StickyMicky

bring it on i say

pslewis

Do you think we should arrange a ScoobyNet whip-round for these poor souls??

About £100 each to help keep them in the manner they thought they were accustomed??

Pete

pslewis

So? for 8 years - 8 years - they have conned us?? AND been voted back in twice?? AND will stay in power for the next decade at least??

Grow up you muppet!!

Pete

davegtt

WTF are you waffling on about? Do you think they care what their house is worth? theyve took debt. Theyve took the debt they can afford to pay back. Theyve got the house they want and the car they want, aslong as they can afford to pay it back do you think they care? NO!!!!!! OHHH my house price has dropped £20k, poo means I cant afford anything anymore

End of the day theyre still in a better position than those without a house

btw where I am, Im seeing rises still, over the last year there has definately been a £10k increase over the last year on 3bed semis etc.... Not saying thats what they are selling for but they are definately NOT dropping...

Pete if everyone took your advice we'd all have sold up years ago and be homeless

SJ_Skyline

Just like one of the million monkeys typing at a million typewriters, Pete does actually hit the nail on the head occasionally

unclebuck

Not 'us' lewis - YOU!!

Leslie

Yes PSL, for the whole 8 years!

Not to forget all the rest of the spinning, that is to say lies that has never stopped for all that time.

Clark left the economy in an outstanding position at the end of a world recession and NL have pissed it all against the wall.

Les

wrighty69

I know were on the verge of a recessecion, so far this year there has been the largest number to date of small buisnesses closing or going bankrupt.

There is not enough money being spent by consumers on the high street, and the trend is that most people are begining to save money instead of spend it.

Petrol is through the roof which again will effect small buisnesses, and not only that the cost of living is set to rise by limiting cheap imported clothes from China. If its knickers and bra's today what will be next? Electrical goods? This will also effect big buisnesses.

House prices will also fall, but they peak and dip anyway so in a few years they will probably be back up to a simmilar level again.

So there it is, as an economy we probably will see a recession, but to be honest we've done well because we should have been in a recession two years ago! Most of europe and the US have been in recession, but we've wethered out the storm so far, but it won' be long.

MikeCardiff

iTrader: (2)

Re the house prices - problem here is that everyones houses went up, people then borrowed against this equity, and when the price drops again they suddenly have negative equity on the house - as a LOT of people really stretched themselves to buy houses ( as so many couldnt afford anything at 3x their income ) its only going to take the interest rate to go up a couple of percent, and suddenly they cant afford to pay the mortgage anymore.

Consumer spending has slowed dramatically due to so many people borrowing up to their limits, which leads to job losses, factory closures etc....

Interest rates ( wrongly IMHO ) have been kept artificially low over the past couple of years, which is what led to the house prices going stupid in the first place - I dont think we'll ever see interest going up to 10+ % like we did before the last recession, but a couple of percent over a year or so is quite possible, and this is going to hit a lot of people hard on their mortgage payments.

I think their is an awful lot of industry BS talked about with the housing market anyway, trying to instill confidence by saying things are only dropping by tiny amounts - when will they realise ? NOBODY IS BUYING HOUSES ANYMORE ! they are stupidly overpriced, and in a lot of areas have more than doubled in price in 3 years - HAVE YOUR WAGES DOUBLED OVER THE LAST 3 YEARS ???

First time buyers cant afford anywhere, which effects everyone all the way up the housing chain. In my area, 3 bed semis went up to £280K - five years ago they were £100 - £110 K - is this sustainable ? Round here houses used to sell in a couple of weeks maximum, now they sit on the market for 6 months without selling, and only do sell when the sellers knock £40K - £50K off the prices !

Labour themselves admit to trying to 'soften the crash' - they KNOW its coming, its just a question of when, and how badly.

unclebuck

Of course they do. We have been systematically lied to throughout their second term on the economy. The reason the lid was artificially kept on things was to ensure their third term re-election. Now that phase of the 'project' is completed, they are free to continue their madcap scheme of turning the country into a police state where your every move is electronically surveiled and taxed. To hell with the economy.

Some are suggesting that this level of surveillance will actually be required to quell the civil unrest that the encroaching recession will bring and people grow increasingly desperate.

davegtt

Who cares if people are in negative equity? the majority of people buy a house as a long term investment and somewhere to live.... In most cases a house will still be worththe same/more than what you bought it for by the time youve paid your morgage off....

Your right about interest rates, thats the 1 and only thing that will effect people. personally I dont see a big rise in these for a while yet....

KiwiGTI

You've hit the nail on the head with that one, other factor is has the cost to produce houses gone up this much.

Both of these reasons are enough to have Warren Buffett warn about investments but tell that to the homeowners.....

OllyK

It becomes and issue when interest rates rise and people can't make the repayments, they owe more than their house is worth and the banks don't tend to like that.

davegtt

If you read the whole of my post you'll notice I did touch the subject of interest rates.... although personally I dont see them rising much over at least the next couple of years.