Just heard on Bloomberg that in 2007 Northern Rock loaned £41 billion in mortgages.

This puts into perspective that it has announced in 2009 and 2010 it will lend the TINY £14 billion in mortgages.

Extrapolating these figures may suggest that current house prices will fall a further 30% in the next year to two years. So if you are buying a house or property take the asking price and offer it minus 30% because that is what it will be worth by end of 2010 ( and that is if things go well )

As far as stocks are concerned they continue to drop on the world exchanges. Most of them are becoming junk in reality because they are propping up insolvent or loss making companies. Unless someone is rich the stock market is not a place to enter. The only people making money are short sellers and those who have enough money to ride the exchanges. Long term investors are seeing their capital eroded. We are now back to 1997 levels in London and that means anything invested and left since then has made NO MONEY !!!! Scary for people who are relying on growth to pay pension funds or investments or endowments etc.

The recession is showing every chance of turning into a Depression - which will be the first time since the 1930s. Most of us were not even alive in the 30s. We are entering unchartered territory.

I am so glad that I got rid of all my debt years ago......