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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 3054
Posted: Feb 22, 2010 5:00
Comments: 3054
Forum Topic:
GBP
Discuss GBP
My point is that anyone thinking that things are getting bad now have not lived through the last 3 recessions. Banks and mortgage lenders may well have long memories even though they are a bunch of cretins nowadays :-)
If I were a mortgage lender I would be worrying about negative equity property values once our austerity measures really start to bite. Remembering back to pre free-for-all subprime mortgage products the interest only mortgage always had stricter lending criteria and 75% LTV would be very typical. Prime products were mainly capital and interest repayment. You could try Northern Rock lol.
I am very out of touch having sold up property except my main residence back in 2002. I thought there was a bubble then :-)
good to short around 6250/70 for 5700 level in coming weeks.....
gl/gt
Ashraf
Sterling on the backfoot, falling to $1.6280s while EURGBP bounced off the 0.8650s trendline support (Feb 18) now eyeing a possible breakout of 0.87 for 0.8730. EURO TRADERS await the vote from Portugal's Congress on austerity due at about 17:00 GMT (12:00 ET).
Discussions to start at 15:00 GMT. In the event that austerity is rejected, PM Socrates could end up without govt, which raises the possibility for Portugal to ask for a bailout at tomorrows EU summit. EURUSD has shied away from the $1.4280 trendline resistance and is not expected to break out of it. USDJPY remains stuck at 81.
Ashraf