reporadar™

Bradford and Bingley to be nationalised. One thing the media isn't mentioning, just as it didn't bother to point it out when the run on Northern Rock occurred, is that these banks based their business models on the one which the Government was keen on Building Societies emulating.

Midday came and went, and with it the annoncement that the Bank of England’s Monetary Policy Committee had kept the base rate at 5%. The September meeting was over and nothing had changed. With commodity prices having peaked and now in a consolidation phase, let alone what is happening to house prices and real per capita [...]

Price inflation peaking. King finally comprehending the situation. Deliberate support for the panic housing measures. Surprise. All this is why "I think there is a 60% chance they'll surpise and cut".

Although this is just an initial reaction to a cursory look at the Government's panic measures, they would appear to be inadequate and likely to be long-term detrimental to the housing market.

The last couple of weeks have seen a myriad of headlines expressing fears of imminent recession. The Government claim GDP growth is still holding above the negative. But how reflective of the situation are their numbers?