U.K. Nationwide House Prices Drop Most Since 1990

Jennifer Rudd/ August 28, 2008/ 12pm Noon

The economy in the United States is not that great right now but it is interesting to find out that the economy in other countries is also deteriorating. In this article it states that the United Kingdom house prices has declined in the past year and lately in the past week faster than it ever has in two decades. Prices have fallen in the past month almost 2% which would make it the 10th month to do so.

The worst possible property sprawl has happened since the last recession in the early 1990’s and the banks have had many troubles with the rationing of the mortgages. Policy makers have had to step in more than ever to figure out a way to put aside inflammation concerns and worry about the cutting of interest rates.

The United Kingdom bonds are rising; where in London basis points are dropping totaling four. This month’s annual drop hit double digits since 1990. If the prices continue to drop, by the end of the year it will equal around 15%.

This article to me is astounding; as a college student going through my first presidential election and feeling how the economy is the article is basically stating that other countries are dealing with economy crisis also. I truly hope that the economy will turn around for the good but it will absolutely take a while. Even knowing that the United Kingdom is a country that keeps more to itself just shows that it can still be affected. The British banks have condensed lending after the United States subprime mortgage. This article is just putting truth of the matter on paper, which if economies around the globe do not do something to fix the problems then what happens from now on is scary.
http://www.bloomberg.com/apps/news?pid=20601068&sid=agnSYkYJVRDw&refer=home