Posts tagged ‘Credit Crunch’
Normally when I’m on holiday, I’m far more inclined towards trash TV than anything remotely brain-taxing, but this Christmas I’m going to tune into a Radio 4 special about the economy (Today programme, 31 December).
The fact that this particular radio show is being edited by Jarvis Cocker – who I’ve seen in concert, oh, about a trillion times – has absolutely nothing to do with it; I simply am that dedicated to anything work-related. Ooh, look: Rudolph and Santa just flew by in a silver sleigh.
The slight flaw in my plan is the programme’s ridiculously early kick-off time – six o’clock in the morning, for pity’s sake – that’d be a struggle even without the yuletide festivities; however, I reckon it’d be worth it to catch Jarvis’s musings on economic matters.
Here’s what the man himself has to say about the various topics he’ll be pondering on the programme:
(click to watch BBC iPlayer clip)
Cadbury’s recently bucked the trend of most other businesses when they announced their profits were up by 11 per cent over the last quarter.
There’s got to be a connection between that and the general gloom that’s going around, surely?
We might not be able to heat our homes anymore but goddammit, we can still afford the odd Dairy Milk to cheer ourselves up.
So in honour of Cadbury’s range of feel-good products, I’ve written a few chocolate-coated words on the housing market. My apologies in advance…
This past year has been no Picnic or bed of Roses for anyone affected by the credit Crunch(ie).
But will the recent government cash Boost lead to Gordon Brown & Co. being hailed as the Heroes who saved us from an economic Melt(s) down?
Is there a Wispa of optimism in the air, or will Gordon be accused of Fudge-ing the financial truth, and end up with (Creme) Egg on his face?
Thinking about it too much is sending me into a mental Twirl; I need some Time Out before I turn into a total Flake…
The brilliant Bird & Fortune explain the credit crunch…
Bird: … all the milk is standing around and gets rancid and hardens, and then when you get hard milk what do you get?
Bird: No, no, no, no, no. It’s more like a jelly. It wobbles, you see.
And at this point the man in the street turns to his wife and says, “Irene,” or whatever her name happens to be, “em, we can’t have that new house you wanted because all the milk has turned to jelly.”
I hope that’s clear…
Last week I asked whether it was time to start buying again. Among those who responded 65 per cent said no, the market has further to fall and 35 per cent said yes, we’re over the worst.
My own view is this: the market does have further to fall, but yes, we are over the worst (talk about having yer cake!) .
That might sound like lunacy, not least when you look at today’s report from the Royal Institution of Chartered Surveyors. But with the benefit of hindsight we will, I suspect, view this RICS report as marker of the market’s low point.
FindaProperty’s editor considers the property space-time continuum (while riding a bike)
Why? The problem in recent months has been mortgage availability, and yesterday’s announcements should make it easier for home buyers to get their hands on the money they need to move.
Not as easy to get hold of as it has been in the past, for sure, but easier.
That will boost transaction levels and as a consequence I expect the supply/demand imbalance, which currently favours buyers, to start edging back in the direction of sellers.
Prices do still have further to fall, but the pace of the falls will ease (that’s already happening) as confidence gradually returns.
Come next spring – if (big if, I know) the mortgage companies deliver – we could be looking at a very different situation. I don’t expect prices to have recovered by then, but I do expect things to have stabilised.
So for buyers sitting on the sidelines, the coming months could present a real window of opportunity.
It is, as I noted last week, always better to buy close to the bottom than to end up on the wrong side of the revival. We’re not quite there yet, but we’re definitely heading in the right direction.