Results 1 to 2 of 2

Thread: Banks and borrowers wake up to that morning-after feeling

Hybrid View

  1. #1
    Join Date
    Jun 2006
    Location
    US, Europe and Asia
    Posts
    4,592

    Default Banks and borrowers wake up to that morning-after feeling

    Banks and borrowers wake up to that morning-after feeling
    September 17, 2006 (The Observer)

    With personal bankruptcies reaching record highs and lenders showing long overdue caution, the credit party may be over, says Heather Connon

    Is the long-awaited credit crunch finally starting to bear down? The evidence pointing in that direction is mounting steadily.

    Last week alone, Citizens Advice warned that a growing number of borrowers were missing mortgage payments; the International Monetary Fund said further rises in interest rates could undermine the housing market; statistics from the Council of Mortgage Lenders showed that first-time house buyers were borrowing record multiples of their income to get on to the housing ladder; and HSBC, one of the big five lending banks, said it would review all overdrafts annually to identify those who were struggling with their debts.

    Add in a record number of personal bankruptcies - higher now than at the height of the housing market crash in the early 1990s - and a rapid increase in arrears on credit cards, and it seems the hangover from the prolonged borrowing binge has finally started.

    AntiSpin: Here's to the housing bubble "soft-landing" predicted by the world's central banks that never admitted we were ever "in the air" in the first place (their analogy, nor ours).

    Here's to those who were tricked into flying so high. We do not stand by to watch you crumble but stand beside you, to help if we can.

    Here's to long time iTulip readers–the guys ejecting with the parachutes.

    Last edited by FRED; 09-18-06 at 12:51 AM.
    Ed.

  2. #2
    Join Date
    Apr 2006
    Location
    United States
    Posts
    96

    Default Re: Banks and borrowers wake up to that morning-after feeling

    The National Association of Home Builders' index for U.S. sales of new, single-family homes fell in September to 30, its eighth straight drop and the lowest level since February 1991 when the economy was in recession.

    http://calculatedrisk.blogspot.com/

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.

Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.

Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.

Objectionable posts may be reported to the board administrators via Contact Us.

-->