House Prices Drop US/UK Housing Crash? Subprime Bubble

Independent: ..I’ve a small piece of advice to offer Columnist in the Independent newspaper Andreas Whittam Smith says:
“… it would be best to admit that the recession will just have to take its course, long and bitter experience though that would be.”
He makes the point that all the govt actions since Aug 1997 have so far prevented the worst scenarios (I guess this means HBOS going bust for instance). But we are still in a vicious downturn.

Original post by voiceofreason

BBC: Mandelson considers car loan aid The UK car industry does not need a bail-out but the government is considering help for manufacturers’ financing arms.

Original post by gardeniadotnet

I’ve already vented my spleen at enough of the powers-that-be today, so this re-post can go up pretty well without comment.  I can’t even remember which blogger first recommended it, but at least a couple of places have already pointed this out as a good read, and Doom is happy to expose the first couple of charts above the fold here.
The author does do a good job on the old Birth Death Model
 

The December Non-Farm Payrolls Report: Portrait of a Ponzi Economy
by Jessie
The ‘headline number’ is the seasonally adjusted net change in jobs. The drop out of the range that was held in the prior years is obvious on this chart.

This is the (in)famous Birth Death Model from the Bureau of Labor Statistics in which they add jobs as a ‘plug’ to account for new jobs being generated by the economy from smaller business. The trend […]

Original post by John M.

In my humble opinion — this image is no accident (click the pic for context [1] ):

The mainstream media routinely uses modified or carefully selected images for ad hominem attacks, but this example deserves to become a Communications course classic.  Note the stark primary color-scheme and a cropping that places Neel’s right ear squarely at the center of the frame.  The ear is also emphasized by the white arrow formed by his shirt collar, and as an added bonus, his left index finger is precisely in line with top edge of cartilage, fortuitously lit to suggest a point.  What we have here is a carefully engineered suggestion of the popular character from the old Weekly World News.

… and yes, we’ve targeted Paulson, Kashkari & Co. like this before, but sneaking it under the radar just doesn’t seem nice.
——————-
[1]: "Panel Steps Up Criticism of Treasury Over TARP", by Michael R. Crittenden, […]

Original post by John M.

Evening Standard: Why we’re plunging into a falling property market “I had a big deposit, got my mortgage easily and fixed the rate for two years. If I then want to move again, the prices of other properties will have fallen just as much so it will make no difference in the end. You’re not losing real money.”

Original post by daddy pig

Telegraph.co.uk: Merrill Lynch says rich turning to gold bars for safety Merrill Lynch has revealed that some of its richest clients are so alarmed by the state of the financial system and signs of political instability around the world that they are now insisting on the purchase of gold bars, shunning derivatives or “paper” proxies.

Original post by v stor

Casa Dubai: Casa Dubai Casa Dubai has closed down with interesting comments in regards to the state of the middle eastern property market.

Original post by sohiab rehman

ExcelExperts.com: How much can you afford to spend on a house ? This calculator allows you to enter your personal circumstances combined with market assumptions, and provides warning signs that help you work out what price house you can realistically afford.

Original post by nick vivian

Market Sceptics: Gold Backwardation that shook World This article explains gold backwardation in a very good, albeit somewhat scary way. The main idea is of the carrying cost. It costs money to hold gold(vault, security etc) therefore the futures price is inevitably larger than the spot price. The spot price essentially does any collapsing necessary. However, at the moment the holders of gold are prepared to accept the “carrying cost” as their personal cost to remain in possession. Essentially they believe gold will be unavailable soon. But, I am coming to believe that all savers are deluding themselves in their attempts to maintain savings value. There is no way out. Gold will fall in real terms as the various economies fall. Maybe it is the -last- safe resort, but that doesn’t make it safe.

Original post by stillthinking

Findaproperty: 2 bedroom apartment for sale I just thought I’d post this to remind us all that many vendors and EA’s are still in denial. Flats in this block were selling in 2003-4 for 187K-197K, but the vendors want 285K, even though Finoulla at Nationwide has said that average prices are now down to 2004 levels. FYI.

Original post by bystander