In this video, I talk with author and economic analyst John Sneisen @TheEconomicTruth about the British mortgage market as the Bank of England warns of some clear instability.
Of course housing markets are localized, but it appears there are problems across the board in Britain in most major hubs.
The Bank of England official has warned there are signs of "risk". That may be under stating it.
Alex Brazier, executive director for financial stability strategy and risk at the Bank of England said a sharp slowing in credit demand from buy-to-let investors and a subdued credit demand from new buyers has "masked the effect of looser credit supply to owner occupiers."
He says lenders are now prepared to take a bit more risk with mortgages.
Brazier also made a lot of ridiculous points being from the Bank of England and all which we take to the wood shed in this video.
We have seen the beginning of the domino fall. We've talked about the housing bubble in the UK in the past and people always come to us asking why it hasn't completely fallen yet. It's because there isn't a timeline on this as the fundamentals are off the table due to the level of manipulation in the markets as well as the monetary system, we just know the crash is inevitable and we point out the tell-tale signs. It's irresponsible to put dates on such events other than to say that there WILL be a date down the road.
The fact that it has sustained itself so long is incredible.
We have gone into the return of collateralized debt obligations, credit default swaps, mortgage backed securities just like we saw in 2006 and 2007. We know what followed.
There's investor confidence but no fundamental demand. People are watching "fix it up" shows on television and going and buying houses at inflated prices thinking that it's an asset and that they'll definitely make money back. Then they risk losing everything they have. This is irresponsible.
It's important that people as independent human beings be self sustainable and financially responsible for the sake of themselves and their families.
We need people to be educated as well about the markets and read enough into them outside of faulty Keynesian nonsense one reads in school which simply reverts the brain to dependency and debt.
If one is educated they can be independent, take care of their family and apply the changes they wish to see.
With some much happening in Britain right now, it's time people step up and be the change they wish to see.
