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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (305758)	5/25/2011 9:48:14 AM
From: Jim McMannis	Respond to of 306849

Joseffy is the bouncer.

To: Pogeu Mahone who wrote (305758)	5/25/2011 9:51:11 AM
From: Jim McMannis	Respond to of 306849

Chinese Rating Agency Downgrades UK Sovereign Debt; Downgrade Party Needed globaleconomicanalysis.blogspot.com The Wall Street Journal, the Telegraph, and International Business Times have stories regarding a downgrade of UK sovereign debt by a Chinese rating company. Much of the information overlaps, but some snips vary site-by-site. Wall Street Journal: China Ratings Agency Downgrades UK Sovereign Credit Ratings Chinese ratings provider Dagong Global Credit Rating Co. said Tuesday it downgraded the local and foreign currency sovereign credit rating of the U.K. from AA- to A+ with a negative outlook. "The downgrade reflects the true status of the deteriorating debt repayment capability of the U.K. and the difficulty in improving its sovereign credit level in a moderately long term in the future," Dagong said in a statement. "Considering that the uncertainty arising from (future) monetary policy adjustments of the Bank of England and the spillover effect of the European countries...are likely to further worsen the government's fiscal status, Dagong gives the negative outlook on the local and foreign currency sovereign credit rating of the U.K. (for the next) one to two years," Dagong said. Dagong said the data indicate a deterioration in the U.K.'s ability to service its debt, while global inflation triggered by excessive issuance of the U.S. dollar will also affect growth. The U.K.'s debt burden leaves it little room to use monetary and fiscal policies to boost domestic demand and stimulate its economy, and its deficit will remain a high level, Dagong said, without giving a time frame. The U.K.'s banking system has a large amount of risk exposure, which could create risks for the government, Dagong said, adding it estimates that about 40% of the banking system's GBP2 trillion worth of assets is exposed to risk. The Telegraph: Chinese rating agency downgrades UK debt Dagong Global Credit Rating Company downgraded the UK's local and foreign currency sovereign credit rating to A+ from AA- with a "negative" outlook for its solvency, the company said in a statement. The downgrade reflected "the deteriorating debt repayment capability of the UK and the difficulty in improving its sovereign credit level in a moderately long term in the future," it said.

To: Pogeu Mahone who wrote (305758)	5/25/2011 10:11:06 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

The lost generation and merging of credit bubbles – College graduates go into massive debt and enter a low wage job market. Median starting salary for the class of 2010 is $27,000. Student loan debt soaring while wages decline and delay a generation from buying homes. doctorhousingbubble.com The student loan problem connects very closely to the future success or issues housing will face in the next decade. A large part of the housing machine is based on stable and predictable home price appreciation over long periods of time. This equilibrium is broken thanks to the recent housing bubble but also many younger professionals are now carrying student loan burdens that sometimes rival the size of a mortgage. This is unprecedented in history but we seem to be saying this often during this decade of incredible debt bubbles. The stories of boomerang college graduates heading back home unable to find jobs is now somewhat known by most since the Great Recession started. What is under reported however is that each subsequent class of college graduates is producing a new class of worker that is in massive amounts of debt because of their education and will need to put off buying a home. Debt is debt and ultimately student loan debt is crushing many young professionals. The fact that many are unable to reap the rewards of their education in the job market is sending repercussions deep into the housing market especially the new home buyer segment. The data on recent college graduates is rather sobering.