Are we changing our tune, then, about what to expect from markets? Not one bit. But the question now is timing. The collapse of 2008 was so severe because of the sudden reduction in leverage in the financial sector. As assets fell in value, the most highly leveraged firms (or lenders who raised money by selling debt) went out of business.
October 12th, 2009 | Dan Denning | 34 comments | ContinuedAll Posts Tagged With: "mortgage bubble"
Mortgage Bubble and More at Stake Between Australia and China
Two other items of note in yesterday’s housing numbers. The First Home Buyer’s consolidated their position as the most important group propping up Australian house prices. First home buyers increased their percentage of total owner-occupied mortgage demand from 28.6% in April to 29.5% in May. Nearly a third of all demand for new mortgages is coming from new buyers sucked in by the grant. Hmmn.
July 9th, 2009 | Dan Denning | 5 comments | Continued
The Collapse of the U.S. Housing Market and Mortgage Bubble
The collapse of the U.S. housing and mortgage bubble has proved much more worrying and has already destroyed the independence of Bear Stearns, Merrill Lynch, A.I.G., Lehman Bros, Fannie Mae, Freddie Mac, and, in London, Northern Rock and HBOS, with various levels of loss for the shareholders. When we were writing “Blood in the Streets”, we did foresee the significance of the housing market.
September 19th, 2008 | William Rees-Mogg | 0 comments | Continued