External and internal debt The UK has without doubt the worst external debt situation of any country in the world. Between the UK and the USA they own, but not proudly, half the the debt owed to the world be it IMF loans or money owed as outstanding debt for imports and trade deficits. But....as the UK has one fifth of the US population but almost the same external debt level you will be able to judge the imbalance. Saying that all countries have a certain level of debt but the long term aspect is what counts in a rapidly changing world.
The UK housing market will only falter if the Banks decide between them (and they do have closed meetings) to stop pouring money into the property market. How else does anyone think the market grew in the first place. You cannot borrow what someone will not lend you.
As regards the larger economy please take note of what the internal voices of the business leaders are beginning to say in articles that creep into the press and online resources. It is not positive. Forget what Brown says - he has his own agenda.
The truth is getting mortgages approved is getting very hard. That is the one thing that will stall and bring down the house. No different to the US.
Sub-prime lending has been well embedded into the market in the UK for a decade. If anyone has an old copy of the Sun dating back to 1997 you will see small box adds offering adverse mortgage deals. I knew some of the players - not nice people and walked away 7 years ago.
Also becoming more competitive in an increasingly competitive world is not the outcome if you raise running costs like the railways have. You need lower wages, lower costs, lower house prices and lower expectations to survive the oncoming route called globalization.
Perhaps reading what the press says about the UK from afar will prove a more rounded view.
Just a view.
Paul
Survival long term is all about balance.
Oh....and to put point to the comment we have just read this article in online - The Times.
HSBC predicts property slump next year - Times Online Who would argue if the HSBC thinks it is a mess? Hardly in their interests to talk down the housing market but spells volumes about where they (The UK Banks) see their own future. They DO NOT GIVE A **** about the public. They do not care and they will take away the keys if they think it will help their bottom line. Seen it twice before. No different this time as one of the key factors in our opinion is that the UK house has been used to buy the future early retirement to the sunny shores of Costa Lot. If you equate 70% of the households interviewed wanted to sell and retire abroad they wanted their homes to be worth as much as possible. And why not.
Everyone deserves a bit of sunshine.
Hi all,
