Rat and Mouse
Tue
20
Jul
Repo-prediction worrying

A report commissioned under Labour but prudently swept under the carpet predicts worst-case repossession rates of up to 175,000 a year. Grant Shapps, releasing the report (no doubt panicked by the prospect of public sector job cuts pushing repo-rates under the Coalition toward that worst-case scenario) in an attempt to take take some of the taint off the current administration and hand it back to the opposition, assures us that they'll do everything they can to keep interest rates as low as possible for as long as possible. More here.

Comments

*Fingers crossed*. An increase in repos would be great news and allow a much needed rebalancing of the economic system and a reduction in overall debt, as well as letting assets move from the overindebted to those who can actually afford them. So far savers have been bearing most of the burden of adjustment thanks to negative real interest rates, it's time for some foolish borrowers to take responsibility for their actions.

Posted by WaitingFTB at July 20, 2010 10:08 AM


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