Credit excesses aren't just an American problem. Other parts of western Europe are radically different but the UK credit policies have had a lot in common with the US. It looked flashy during the upside years but now that we're in the downside, it looks like a tough hurdle. Reuters:
More than one in ten British households may have fallen into negative equity, the Bank of England said on Friday, similar to levels seen in the mid-1990s.Despite some who suggest signs of recovery are showing in the UK, they seem to be confusing slowing of bad news with actual positive, sustained recovery.
The central bank estimated in the first quarter of 2009 between 700,000 and 1.1 million homes were in negative equity -- where homeowners owe more on their outstanding mortgage than their property is worth.
House prices have fallen sharply following increases in borrowing costs during the credit crunch and then a loss of confidence and spending power during the recession.
