DamonHD - 8:43 pm on Dec 1, 2007 (gmt 0)

That's a rather general statement about how capitalism works, in effect, everywhere in the world, ie including the US and the UK.

(Note that in the case of (say) building societies, most of what they lend out is savings from their members: not doing this would apart from anything else get them into the same pickle as Northern Rock. Thus, that £1 trillion figure is really some people lending them money to other people via a third party. That's what banks are *for*.)

The OP was about *UK* prices. Whatever you may think about the end of the world (eg roughly every day with a "y" in it for the Daily Mail), the issue here is is there anything especially or *unusually* bad going on in the UK right now that might make house prices *fall*. The answer seems to be "no", though it might be tough for many people to sell quickly at the price they want to, at least for a while.

All IMHO: I am not an economist or trader or "quant" or whatever, though I do regularly sit on a trading floor and have lengthy discussions with some of the above over a pint or a coffee from time to time...

Rgds

Damon