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Subject: House prices have further to fall

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Asteve

Activist

Posts:930

30/07/2008 7:07 AM	Alert
http://uk.reuters.com/article/businessNews/idUKL01958020080730?sp=true Such a headline, you might not think, deserves a mention, but I think this is very significant. Standard & Poor are one of the three major credit ratings agencies who declared mortgage backed securities to be 'safe as houses' (the other two being Moody's and Fitch) both literally and metaphorically when they gave a staggering proportion of the bonds backing mortgages a AAA rating throughout the developed world. If S&P say "25% off likely" - you can use that as an absolute minimum. They're hardly likely to over-estimate the falls in price that could decimate their credibility - and, with that, their entire business strategy for the future.

stutopian2007

First Timer

Posts:14

31/07/2008 8:44 AM	Alert
If true that's going to be some negative equity. Homes become prisons me thinks, for some at least.

unclealbert

Activist

Posts:442

01/08/2008 4:47 AM	Alert
Indeed. Massive negative equity. Expect a further 35% average drop minimum. A lot of people will wish they hadn't listened to the panicked sheep. At least they may learn from it, saying that the 90's crash wasn't that long ago and many people simply wiped it from their memories.

slicedcake

Activist

Posts:312

02/10/2008 12:07 PM	Alert
Still going down. An obvious trend.. http://news.bbc.co.uk/1/hi/business/7647251.stm

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