Price movements15 Nov 2007 05:11
The price of these types of share will fall when confirmation of house price falls comes through. Negative equity is going to hit companies like this one hard!
Looking at the big picture. When the crunch hits it will hit the high street first causing companies to stop hiring, this in turn will lead to higher youth unemployment and higher youth crime. Natural effect is higher insurance premiums for business and domestic customers. This will lead to less hiring and more crime. Wages fall! Debt repayments become difficult even for prime borrowers & impossible for sub-primers. The government calls this boom & bust. We just started on the bust. I seem to remember the Gov saying in 1997 that this would never happen again! This is my third!
All this has happened before & will happen again!