Forex Books Talking

No seriously we were just hours away from total financial collapse as the following video illustrates of just how close the U.S. Financial System came towards ending! At 2 minutes

20 seconds into this C-Span video clip, Rep. Paul Kanjorski of Pennsylvania in February 2009 explains how the Federal Reserve told Congress members about a

"tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occurred

over the period of an hour and threatened a further $5 trillion to be drawn out triggering a total collapse of the Financial System, which prompted Hank Paulson's emergency $700 billion TARP bailout action.

With that in mind that the big banks still heavily supported by the central banks have still nowhere near recovered from their near death experience and so rather then Barclays 100% mortgage

being a leap over the cliff, instead is a mere belie crawl towards the edge for the key component is that Barclays 100% mortgage DOES require a 10% deposit from friends

or family (usually Mom and Dad) to be deposited into a Barclays savings account for 3 years. And if after 3 years the mortgage is upto date then they will get their money back with interest

So basically Mom and Dad cover the risks for the first 3 years after which the expectations are that there would be at least 10% equity built up by then via capital repayments and house price inflation so as that the

real risk to Barclays is never likely to be more than 90%. Apparently a win win situation for home buyers without deposits (those with wealthy parents) and also for Barclays which gets to expand its mortgage book.

Of course Barclays 3 year bet only pays of if house prices don't fall! They can stagnate, but NOT fall for then the borrowers will be in negative equity and thus at higher risk of defaulting on their mortgages.

The Non seasonally adjusted UK house prices momentum shows that after a post election slowdown to 7%, momentum has once more steadily increased to an inflation rate of 11.1%,

now at its highest rate since the last housing bull market! Therefore the effective house prices momentum range is between +11% and +7% which implies to expect an average annual house price inflation rate for 2016 of about 9%.

Therefore don't expect any follow through on March's surge higher to 11.1% as the buy to let sector frenzy is over! Instead I expect house price inflation to fast slow to a more sedate pace of about 8% pr 7% per annum.

In terms of the prospects for UK house prices, it is now well over 2 years since excerpted analysis and the concluding 5 year trend forecast from the then forthcoming UK Housing Market ebook was published:

This forecast is based on the non seasonally adjusted Halifax House prices index that I have been tracking for over 25 years. The current house prices index for November 2013 is