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Even IOUSA undershoots.
House prices in the UK are in for a truly monumental haircut. The economy there has ceased up, almost nothing moving around the country, no loans or mortgages being taken out, small businesses having their loans foreclosed left and right, good risks as well as bad, etc, etc...
The British banks are dead. The pound is dead. I don't think a UK default, or de facto default, can be avoided... The trillions of assets that the banks are supposed to be holding are being marked to fantasy, instead of market. In reality, most of those 'assets' are worth a lot, lot less.
That 90bn estimate to recapitalise the banks from the rating agency (the same rating agencies that facilitated the mortgage backed securities nonsense) is a gross underestimate at best, and deliberate manipulation of perceptions in my opinion.
Asset prices, housing amongst them, have an awful long way to fall.
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"I do not agree that the dog in a manger has the final right to the manger even though he may have lain there for a very long time. I do not admit that right. I do not admit for instance, that a great wrong has been done to the Red Indians of America or the black people of Australia. I do not admit that a wrong has been done to these people by the fact that a stronger race, a higher-grade race, a more worldly wise race to put it that way, has come in and taken their place." - Winston Churchill, 1937 --{ORLY?}--
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