Credit crunch - is this the beginning of economic Armageddon?

[Kif]

I think all the recent events will dent confidence in house prices. The press seem poised to fan the flames of a house price slow down. Lending is already tightening up - rates crawling up and banks becoming more choosy.

So house prices drop - and perhaps the City gets a bellyache from innovative ways of packaging and selling credit risk.

Bam! the two main drivers of UK growth.

I've never seen a real bank run before.

Agree, Kif, visions of 1929 (well not quite yet!)

As we are due to complete on new house on Wednesday, this news story has me shitting my pants!

Gordon Brown said
"no more boom and bust"

then encouraged an unsustainable boom on the back of loose lending and credit. If the bubble bursts will he be blamed?

I agree it's very serious.

The cheap money is over. If some people do want to buy that lovely mid-terrace they might find they will have to have a really decent deposit and will no longer be lent 4x> amounts.

Exotic lending combined with vodoo economics is dead. What on earth were these cough intelligent people/bankers thinking?

House prices will come down, I really can't see how they cannot.